Tanzania has acquired an additional 1.24% stake in pan-African real estate financier Shelter Afrique for $ 2.7 million.
The additional capital injection has increased Tanzania’s stake from 0.3% to 1.54% .
Shelter Afrique CEO Andrew Chimphondah said the shareholder support was a vote of confidence in the company, which posted its first profit in six years last year.
“We thank the government of Tanzania for their decision to increase their stake in Shelter Afrique despite the prevailing circumstances,” he said.
“We are also grateful to other shareholders who recently increased their stake. “
Tanzania’s capital payment reduces the ownership interests of its three largest shareholders – Kenya, Nigeria and the African Development Bank (AfDB).
Kenya now owns 17.78 percent of the company’s 18.72 percent Percent in July. Nigeria and AfDB now own 13.27% and 12.83% respectively.
Nairobi-based Shelter Afrique posted net income of $ 1.85 million last year after a net loss of 1.26 Million US dollars in the previous year.
Tanzania’s contribution increases the total amount provided as additional capital to Shelter Afrique in recent years to 94.7 million US dollars.
Shelter Afrique, which provides long-term credit lines to primary mortgage lenders, micro-housing finance institutions and refinancers, has approved $ 52 million in Tanzania since its inception.
The company plans large-scale, low-cost housing projects in the Tanzanian capital Dodoma and its semi-autonomous Zanzibar Islands through public private partnerships and funding.
There are also plans to hold a real estate exhibition in Dar es Salaam in 2022.
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Nine w other countries have shelters. Afrique also provided additional capital, bringing the home financier’s fresh capital to $ 20.69 million over the past six months.
Kenya contributed $ 9.92 million, followed by Cameroon ($ 3.53 million), Mali ($ 2.06 million), Rwanda ($ 1.1 million), Uganda ($ 0.08 million), Togo ($ 0.58 million) -Dollar)), Eswatini ($ 0.32 million), Ivory Coast ($ 0.57 million), and Democratic Republic of the Congo ($ 0.5 million).
Shelter Afrique is owned 44 African countries and two development institutions – the African Development Bank and African Reinsurance Corporation.
The company closed deals with shareholders in 2013 and 2017 to recapitalize the company through additional equity.