Nigeria now second-biggest Shelter Afrique shareholder after Sh1bn injection

Nigeria has injected Sh1.01 billion ($9.4 million) in additional capital in Nairobi headquartered Pan African housing development financier Shelter Afrique, making the west African country the second largest shareholder in the organisation after Kenya.

The capital injection is the first tranche of a commitment by Nigeria to inject up to Sh3.16 billion ($29.3 million) in the firm. It now takes the country’s stake to 14.77 per cent, second behind Kenya’s 14.87 per cent and ahead of the AfDB at 14.28 per cent.

Nigeria previously held a 10.71 per cent stake in the firm as at December 2019.

Shelter Afrique managing director Andrew Chimphondah said they also received a further Sh713 million in additional capital from Rwanda, Uganda, Lesotho, Mali, Namibia, Togo, Zimbabwe and Swaziland.

“This is a strong show of confidence in Shelter Afrique by member countries that the institution is now better governed and has significantly improved its financial performance,” said Mr Chimphondah.

“As a result, shareholders have supported the recapitalisation of the institution as demonstrated by Nigeria’s significant capital injection and contributions from Lesotho, Mali, Namibia, Nigeria, Rwanda Uganda, Togo, Zimbabwe and Swaziland.”

Shelter Afrique, which is jointly owned by 44 African governments, AfDB and African Re-Insurance Corporation, posted a Sh59 million loss for the year ended December 2019, narrowing its loss from the Sh940.8 million reported in 2018.

The capital injection by Nigeria is the latest in a series of moves to gain a larger foothold in pan African financial bodies.

It recently increased its stake in AfDB from 13 per cent to 16.8 per cent, ahead of non-regional members Germany (7.4 per cent) and the US (5.5 per cent).