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Nigeria set to host Shelter Afrique’s 42nd AGM

by Radarr Africa
written by Radarr Africa

The 42nd Annual General Meeting (AGM) of Shelter Afrique slated for May 2023 will take place in Abuja, Nigeria, the shareholders have agreed.

This follows the signing of the host agreement at the end of July between Shelter Afrique and the Federal Government of Nigeria in Victoria Falls, Zimbabwe during the 41st AGM.

According to the pan-Africa housing development financier, the yearly shareholders’ gathering will cover an annual symposium, a ministerial roundtable and some interlinked business activities as part of the proceedings.

Nigeria is expected to ensure effective organisation and success of the meetings by undertaking to contribute to the physical planning which includes country entry requirements, provision of hosting premises, transport for designated officials and related protocols and formalities.

“Nigeria is happy to be the next host of the Annual General Meeting. We appreciate how things come full circle. We were the host for the 36th Annual General Meeting in 2016.

“We steadied the ship and handed stewardship to Zimbabwe. Now Zimbabwe has an opportunity to do the same for us. This is the role we must all play in advancing the cause for affordable housing.

“We look forward to collaborating with the Chairperson of the 41st Annual General Meeting, Daniel Garwe, and with the 2nd Vice-Chairperson, Rwanda and indeed all shareholders.

“Our planning begins now, we must continue the tradition of excellent hosting, and we will shortly communicate more information on the date, venues and sundry,” the Minister of State for Works and Housing, Mr Umar Ibrahim El-Yakub, stated.

In his remarks, the acting managing director of Shelter Afrique, Mr Kingsley Muwowo, thanked Nigeria for accepting to host the event next year.

ALSO READ: Sterling Homes Expands Services to Rwanda to Deepen Sustainable Real Estate Development

“We are pleased with the emphasis the Federal Government of Nigeria has placed on the provision of affordable housing. We believe that by hosting our 42nd AGM Nigeria will be able to take the lead on shaping the narrative around affordable housing in Nigeria and beyond,” Mr Muwowo said.

Nigeria is one of the founding members of Shelter Afrique and has been an active member over the years. Currently, it’s the second largest shareholder in the company, with a shareholding of 15.8 per cent after Kenya.

Source: Business post

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AFRICA NEWSBuildingFinance & Services

Thierno-Habib Hann has been appointed as the new CEO of Shelter Afrique

by Radarr Africa
written by Radarr Africa

The board of Shelter Afrique has appointed Thierno-Habib Hann as the new chief executive to succeed MR Andrew Chimphondah who quit suddenly in February.

Mr Hann currently serves as the Asia-Pacific Lead for housing finance at the International Finance Corporation (IFC), based in Bangkok, where he leads the strategy development and implementation. 

He previously held a similar position, in charge of Africa and the Middle East, based in Nairobi. “MR Hann has extensive international experience in housing finance, capital markets and structured finance, set-up and management of investment funds with banking and multilateral institutions, spanning over 20 years,” Shelter Afrique chairman MR Ephraim Bichetero said.

“He brings with him a wealth of leadership experience in development and investment, sharp insight in the real estate landscape and a strong track record of delivery.”

A native of Guinea (Conakry), Habib holds an MBA in Finance and Investments from the Zicklin School of Business, Bernard Baruch, New York City, a master’s degree in Accounting and Finance and a bachelor’s degree in Management and Applied Economics (GEA), from Paris IX Dauphine University.

He began his career at the consulting firm Arthur Andersen, LLC as a Senior Consultant in Financial Services and Capital Markets in New York City.

He has also worked at JPMorgan Chase and Goldman Sachs as Manager and Vice President respectively and led investment teams issuing mortgage-backed securities (RMBS/CMO) and credit derivatives (CDS).

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Shelter Afrique, owned by 44 African countries and three development institutions — African Development Bank, African Reinsurance Corporation and the African Solidarity Fund — has had three CEOs in less than eight years. In May, the former boss Andrew Chimphondah sued the organization claiming that he was removed from office without being granted a hearing.

Mr Chimpondah says in a petition filed before the Employment and Labour Relations Court that he was voted out in a decision made in February, without getting an opportunity to respond to accusations levelled against him. The Zimbabwean was employed by Shelter Afrique in July 2018 for a contract of five years.

SOURCE: Business daily

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AfricaBusinessNewsReal Estate

Shelter Afrique records $1.04M in net profit for 2021

by Radarr Africa
written by Radarr Africa

Shelter Afrique, a Pan African housing development financier has posted an operating profit of $1.04 million up from an operating loss of $ 0.58 million the Company recorded in 2020, backed by impairment recoveries and effective cost control measures.

The Company contained its operating expenses at $8.04 million in 2021 down from $8.44 million in 2020, representing a 10% decline. It also reined in its operating expenses which dropped from $ 8.35 million in 2020 to $7.71 million in 2021.

The Company’s gross income, however, declined slightly to $12.09 in 2021, down from $13.94 recorded in 2020.

Addressing Shareholders at the 41st Annual General Meeting held in Victoria Falls, Zimbabwe, Shelter Afrique Chairman Mr. Ephraim Bichetero said the transformational initiatives undertaken by the Company and its business’ resilience enabled the Company to weather the COVID storm.

“This profit continues to build on Shelter Afrique’s commitment to returning to full Financial Sustainability, one of the Company’s 3 Strategic Goals, along with Enhancing Shareholder Value & Development Impact and Organisational Sustainability. I wish to commend the board, management and staff for their continued efforts towards achieving the desired results ahead of time,” Mr. Bichetero said.

The AGM which kicked off on July 25 under the theme: Climate Change and the Built Environment, in reference to the Glasgow Conference of Parties (COP26), will close on July 30.

Financial Viability

In the 2019-2023 Strategic Plan, the Company projected a return to financial viability by 2020 and overall financial sustainability and profitability by 2023, a feat that it achieved two years ahead of schedule.

“Our 2021 financial performance, despite the macroeconomic and socio-political environment, is an indication that the turnaround plan recommended by the board and approved by shareholders continues to be the north-star on our course to returning to financial stability and viability. As management, we are encouraged by this and look forward to the challenge of the coming years,” said Shelter Afrique Group Ag. Managing Director and Kingsley Muwowo.

ALSO READ: FCMB Group records N15.4bn profit before tax in H1

During the year under review total assets declined by 5 per cent from $ 176.68 million in 2020 to $ 167.31 Million in 2021, attributed to the 100 per cent reduction in settlement of the total debt following the repayment of $ 34.71 Million.

Liquidity decreased by 33% per cent from $ 47.41 million in 2020 to $ 31.59 million in 2021, attributed to significant debt servicing payments on the CFA Bond and DRA debt amounting to $ 35.87 million. However, the liquidity ratio still remained strong, closing at 19 per cent, which is 4 per cent points above the minimum threshold of 15 per cent.

Shareholder Funds increased by 19 per cent from $135.74Million in 2020 to $ 161.60 Million in 2021 due to the new capital subscriptions of $24.85 million and the profit of $ 1.04 Million for the year. This increase brings the total paid-up capital by 15 per cent, from $ 157.29 million in 2020 to $182.14 million in 2021.

“We are grateful to our shareholders for their unwavering support through the continued capitalisation of the Company, with $24 million received in 2021 against a target of $17 million. The receipt of these funds was achieved amidst severe fiscal constraints, and we are conscious of this,” Mr. Muwowo said.

Mr. Muwowo added that the Company would continue to review various capital raising options, including new equity capital and debt options through the issuance of local currency bonds to develop and deepen Africa’s capital markets.

“We recently completed a debut ₦46 billion ($110.7 million) Series 1 Fixed Rate Senior Unsecured Bond Issuance in Nigeria’s capital market under its ₦200 billion ($481.3 million) bond issuance programme for housing and urban development in Nigeria. We plan similar bond issuance in East African markets including Kenya, Uganda, Tanzania and Rwanda,” Mr. Muwowo said.

New Managing Director

Meanwhile, Shelter Afrique shareholders have approved the appointment of Thierno-Habib Hann as the company’s new Managing Director. Mr. Hann will replace Mr. Andrew Chimphondah who left the company in February.

Mr. Hann has extensive international experience in housing finance, capital markets and structured finance, set-up and management of investment funds with banking and multilateral institutions. Currently, he is the Asia-Pacific Lead for housing finance & capital markets at the International Finance Corporation (IFC), based in Bangkok and previously in charge of Africa and the Middle East, based in Nairobi.

“The process was very competitive, and Mr. Hann was selected based on merit and competence. He is expected to strengthen governance, be an embodiment of our values and drive the investment strategy of the Company focused on delivering large-scale affordable housing,” Mr. Bichetero said.

Mr. Hann will join the organization once he completes his current contract with the International Finance Corporation. In the interim Mr. Muwowo will continue to serve as Acting Managing Director.

Source: News Ghana

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BusinessEconomyPoliticsWestern Africa

Nigeria increases stakes in Shelter Afrique by N3 billion.

by Radarr Africa
written by Radarr Africa

The Nigerian government has increased its stake in Shelter Afrique, a pan African housing development financier, with about $7.15 million in additional capital subscription, moving its equity from 13.27 percent to 15.8 percent.

Nigeria is currently faced with a huge housing deficit. According to a 2018 World Bank report in 2018, Nigeria has a deficit of at least 17.0 million and the country requires about 700,000 housing units annually, through a 20-year period to accommodate the rising population.

In September 2020, the Kenya-based firm received $9.4 million from Nigeria. The contribution moved Nigeria to become the second largest shareholder in the organisation with 13.27 per cent of the shareholding, behind Kenya with 17.78 per cent and ahead of the AfDB at 12.83 per cent.

This additional capital subscription still keeps Nigeria (15.8 percent) behind Kenya with one percent (16.85 per cent).

The other top three shareholders of Shelter Afrique whose shareholdings have now changed include AfDB, which now stands at 12.16 per cent, down from 12.71 per cent; Mali at 5.3 per cent, down from 5.54 per cent; and Ghana at 5.05 per cent, down from 5.28 per cent.

The organisation is a partnership of 44 African governments, the African Development Bank (AfDB) and the Africa Reinsurance Corporation (Africa-Re).

In a report on its website, the firm said it also received more capital subscriptions from Swaziland and Burkina Faso.

Lauding the government of Nigeria for its show of confidence in the institution, acting Managing Director and Chief Finance Officer of the organisation, Kingsley Muwowo, said the move now places Nigeria in a good position to become the largest shareholder in Shelter Afrique when the country fully meets its capital commitment.

“We are grateful to the government of Nigeria for their continued support and the importance they have placed on affordable housing.

“We are especially grateful to the Honorable Minister for Works and Housing Babatunde Fashola, Honorable Minister for State, Engineer Abubakar Aliyu, and Honorable Minister for Finance Dr. Zainab Shamsuna Ahmed, for their long-term support and for honoring this significant payment. “Additionally, we appreciate Nigeria’s active shareholder and board participation,” Mr. Muwowo was quoted by The Cable as saying.

He said other countries that have so far ramped up capital subscription in the firm in 2022 are Swaziland and Burkina Faso which paid $317,854.54 and $34,610.00 respectively, for additional stakes.

“So far, we have received $7,504,295.45 in additional capital from member states within the last six months of 2022.

“We are grateful to our shareholders for this much needed capital injection which will go a long way in strengthening the capital structure of the company to support the ongoing fund-raising efforts to raise additional debt capital required to support the project pipeline which now stands at $1 billion across 44 member countries,” he said.

According to the firm’s website, Shelter Afrique is the only pan-African finance institution that exclusively supports the development of the housing and real estate sector in Africa.

Source: Premium Times

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