VENTURES AFRICA – Shelter Afrique, a pan-African financial institution dedicated to the development of the real estate and housing sector in Africa, has secured a Sh4.5 billion ($49.5 million) debt from the German development bank, KfW. The loan will be dished out to companies planning to construct houses for the low income market, which is currently underserved.
“The loan with a tenor of 10 years will be used for construction finance for private and State-owned companies and for on-lending to commercial banks and micro-finance institutions,” a statement by Shelter Afrique said.
The mortgage lender stressed the timeliness of the loan, which it says will enable it offset dollar-denominated obligations, as the dollar continues to strengthen against the Shillings. The debt will also enable Shelter Afrique offer “competitively priced project finance products and lines of credit.”
The company had also last year November secured a loan of $10 million from Nigerian lender Wema Bank. This was to make available greater access to mortgage financing for its customers.