Tanzania clears its capital arrears in Shelter Afrique

The Government of Tanzania has cleared its capital arrears in Shelter Afrique after paying the outstanding amount of USD407,284.97, the pan-African housing development financier has disclosed.

The move now takes Tanzania’s shareholding in the Company to 1.72% up from 1.54% held previously. In September Tanzania paid USD2.7 million 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 the Housing Minister and former Chairman of the Shelter Afrique Bureau Honourable William Lukuvi for supporting this important payment .We would also like to recognise the Minister of Finance Honourable Mwigulu Nchemba for making this happen despite the prevailing economic circumstances with countries shifting their budgets to fight COVID-19,” Shelter Afrique Group Managing Director and Chief Executive Officer Andrew Chimphondah said.

Renewed Interest

The Company continues to receive unprecedented support and renewed interest from shareholder following the call for recapitalization.

Within the last six months of 2021, Company received more than USD20 million in additional capital contributions from Kenya, Cameroon, Tanzania, Mali, Rwanda, Uganda, Togo, Swaziland, Ivory Coast and 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 who have fully cleared all their capital arrears. Among other east Africa member countries Kenya’s capital arrears stand at USD17,640,640, Uganda’s at USD4,976,850.4, and Rwanda’s at USD1,037,005.75.

“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 organisation,” Mr. Chimphondah said.

Heightened engagement

In the recent past, Tanzania has increased its engagement with Shelter Afrique, committing to provide 50 acres of land for projects featuring innovation and alternative building materials in a bid to address the shortage of affordable housing in the country, which is estimated to be 3 million units.

“We are actively pursuing large-scale low-cost housing projects in both Dodoma and Zanzibar through public private partnerships and the commitment by the government of Tanzania to provide land is a welcome move,” Mr. Chimphondah said.

To date, Shelter Afrique has approved financing of more than USD 52,246,000 in Tanzania, which has remained an active member.