Nairobi: 18 March 2021: SHELTER-AFRIQUE and the AFRICAN SOLIDARITY FUND (ASF) have joined forces through the signing of a partnership framework agreement, which will enable the two institutions to contribute more effectively to the economic development of their common member states.
The collaboration between Shelter Afrique and the FSA is premised on the FSA’s capacity for intervention instruments, notably the financial guarantee (in the form of risk-sharing), and the refinancing with or without extension of the duration of the loans of medium or long term investment projects financed by Shelter Afrique.
Shelter-Afrique is the only pan-African financial institution that exclusively supports the development of the housing and real estate sector on the continent. Shelter-Afrique is owned by 44 African countries, the African Development Bank and the African Reinsurance Corporation (Africa-Re).
The African Solidarity Fund (FSA) is a multilateral financial institution operating in 14 African countries, specialising in guarantees. The FSA's mission is to work towards economic development and poverty alleviation in its member states by facilitating the financing of investment projects in public, private and micro-finance sectors.
"The majority of African countries are already facing a housing crisis, with the overall housing shortage estimated at 56 million units on the continent. Of this total, more than 90 per cent fall into the affordable housing category. This revelation has redefined our overall strategy as a company, which is now more focused on providing affordable housing in all our member states through a public-private partnership model. "said Mr Chimphondah.
The Managing Director of the FSA, Mr DIALLO, said that "the FSA is an essential contributor to the implementation of structural projects and initiatives that transform member states' economies.
The objectives of Shelter Afrique and the FSA are to contribute to the economic development of their member countries through the financing of investment projects, the support of microfinance institutions and the development of the real estate sector.
Commenting on the partnership agreement signed between the two institutions, FSA's Managing Director, Ahmadou Abdoulaye DIALLO, said that "the resolution of this agreement is to provide a framework for cooperation in which Shelter Afrique and FSA will work together to achieve mutual objectives in the common member states".
"This is an exciting partnership with Shelter Afrique as we will be working together in areas of common interest, concerning medium- and long-term financing operations and the financing of public-private partnership (PPP) operations. "said Mr DIALLO.
Speaking on the partnership, Shelter-Afrique's Managing Director, Andrew Chimphondah, stressed that "the convergence of the FSA and Shelter-Afrique missions will provide financing, counselling and research solutions in the field of housing, respectively.