Shelter Afrique eyes shareholders to boost capital

Pan-African housing financier Shelter Afrique is now eyeing new shareholders as it seeks to diversify its recently shrunk capital base and improve its balance sheet.

The firm said it is targeting non-African countries and institutions such as China, CDC and housing corporations under its Class “C” shares category. Additional target African countries include Egypt, Angola, Ethiopia, and Mozambique.

Shelter Afrique is also pressing its primary shareholders, comprising 44 African countries holding Class A shares, and Class B shareholders African Development Bank’s (AfDB) and African Reinsurance to honour delayed statutory capital contributions worth Sh36.3 billion.

“In addition to us chasing what is already subscribed we are also looking at broadening our equity structure by onboarding new “Class “C” shareholders,” said Shelter Afrique board chairman Nghidinua Daniel at an investor briefing on Friday.

“The 44 shareholders have already given us the go ahead to look for like-minded institutions to bring on board.”

As at 2017, Kenya was the largest shareholder among governments with an 11.16 per cent stake, second to AfDB’s majority share of 22.7 per cent. Other large shareholders included Ghana (11.02 per cent), Nigeria (9.62 per cent) and Algeria (7.36 per cent).

The financier, which is aiming to turn around its fortunes, contends that increasing its shareholding base would be critical in mobilising resources as it keeps an eye on sustaining financing for new projects amid a cash crunch.