TANZANIA, (The Southern African Times) – The Government of Tanzania has paid its outstanding capital contribution amounting to US$407,284.97 to Shelter Afrique bringing the total contribution to US$3.1 million.
By clearing the arrears, Tanzania has now raised its stake in the pan-African housing development financier to 1.72% from 1.54%.
In September 2021, Tanzania paid US$2.7 million in capital contribution, significantly increasing its stakes in the company.
“We are grateful to the Government of Tanzania for becoming a fully paid shareholder with no capital arrears. We thank Housing Minister William Lukuvi for supporting this important payment. We would also like to recognize the Minister of Finance Mwigulu Nchemba for making this happen despite the prevailing economic circumstances with countries shifting their budgets to fight COVID-19,” said Andrew Chimphondah, Shelter Afrique Group Managing Director.
Shelter Afrique says within the last six months of this year 2021, the company has received more than US$20million in additional capital contributions from Kenya, Cameroon, Tanzania, Mali, Rwanda, Uganda, Togo, Swaziland, Ivory Coast, and the Democratic Republic of Congo.
Tanzania becomes the first East African country to fully pay its capital subscription in Shelter Afrique and now joins Morocco, Mali, Lesotho, Namibia, Togo, and Zimbabwe as countries that have fully cleared all their capital arrears.
Among other East Africa member countries Kenya’s capital arrears stands at US$17.6 million, Uganda US$4.98 million, and Rwanda US$1.03 million.
“We wish to show our indebtedness to the 7 shareholders who have fully paid their capital subscriptions and to those who continue to increase their stakes in the Company – it is a huge vote of confidence in our strategy as an organization,” added Chimphondah.
Tanzania has committed 50 acres of land for alternative building materials as it seeks to plug a housing deficit estimated at 3 million units.
Shelter Afrique, which provides long-term credit lines for primary mortgage lenders, housing micro-finance institutions, and re-financiers, has since inception approved financing in Tanzania worth US$52 million.
Shelter Afrique is a pan-African housing financier owned by 44 member states, including Kenya, the host nation, the African Development Bank, and African Reinsurance Corporation.
The firm has also invested in Kenya Mortgage Refinance Companies (KMRC).
