PAN-AFRICAN housing financier Shelter Afrique Development Bank (ShafDB) has disbursed over US$90 million to financial institutions in Zimbabwe over the past decade, businessdigest can report.
These disbursements are part of cumulative approved facilities totalling over US$120 million, aimed at supporting housing and mortgage financing in the country.
Headquartered in Kenya, ShafDB is a leading pan-African institution dedicated to financing and promoting housing, urban development, and related infrastructure across the continent.
The bank is committed to collaborating with key stakeholders throughout the housing value chain to scale up and deliver the housing solutions needed to accommodate Africa's rapidly growing population.
In an interview following the recent US$15 million credit facility granted to CBZ Bank for housing development, ShafDB’s chief business officer for investment and advisory services, Gibson Mapfidza, said the institution's strategy was to partner with tier 1 and 2 banks that have a strong track record in real estate development financing.
“Over the past 10 years, the board of ShafDB has approved cumulative facilities of over US$120 million and over US$90 million have been disbursed to various financial institutions in Zimbabwe,” he said.
“We target to partner with strong covenant banks, tier 1 and 2 banks, with a strong track record in real estate development financing.”
Recognising Africa’s growing infrastructure needs, Mapfidza said it was important to partner with banks capable of delivering housing projects.
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He noted that CBZ Bank had consistently proven its capacity in this area since the partnership began in 2012, with the bank receiving an initial US$7,5 million credit line, followed by a US$8,3 million facility in 2013.
“We see their continued appetite in real estate development and hence our resolve to deepen our relationship with them. Overall, Zimbabwe over the years has been one of our best performing countries,” Mapfidza said.
“Yes, the country has gone through some macroeconomic and monetary challenges, but we are happy the country’s financial sector remains robust and our partner banks creditworthy.”
ShafDB, which has 44 member countries across Africa, is focused on addressing the continent’s housing deficit, which currently stands at 52 million units.
Zimbabwe alone has a housing backlog of over two million units, according to government data.
Mapfidza noted that Africa’s population of 1,5 billion is growing at a rate of 2,4% per year, with projections indicating that 67% of the population will be living in urban areas by 2050, up from the current 45%.
“As such, ShafDB’s quest is to ensure that we work collaboratively with all the key stakeholders across the housing value chain to scale-up and deliver the much-needed houses for the booming African population,” he said.
