Tanzania has acquired an additional 1.24 percent stake in Pan-African housing financier Shelter Afrique for Sh297 million ($2.7 million).
The extra capital injection has moved Tanzania’s shareholding to 1.54 percent from the 0.3 percent it held.
Shelter Afrique chief executive Andrew Chimphondah said the support by shareholders is a vote of confidence in the company, which last year posted the first profit in six years.
“We thank the government of Tanzania for choosing to increase her stake in Shelter Afrique despite the prevailing condition,” he said.
“We are also grateful to other shareholders who have increased their stakes recently.”
Tanzania’s capital payment reduces the shareholding of the top three shareholders – Kenya, Nigeria and the African Development Bank (AfDB).
Kenya now owns 17.78 percent of the company from 18.72 percent it held in July. Nigeria and AfDB now own 13.27 percent and 12.83 percent, respectively.
The Nairobi-based Shelter Afrique, last year, returned a net profit of Sh199.6 million ($1.85 million) from a net loss of Sh136 million ($1.26 million) in the previous year.
Tanzania’s contribution brings the total amount given to Shelter Afrique as additional capital in the last few years to Sh10.4 billion ($94.7 million).
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 Sh5.7 billion ($52 million).
The company plans large-scale low-cost housing projects in the Tanzanian capital Dodoma and its semiautonomous Zanzibar Islands through public-private partnerships and financing.
It also plans to hold a property exhibition in 2022 in Dar es Salaam.
Eight other countries have also given Shelter Afrique additional capital, bringing the fresh capital received by the housing financier in the last six months to Sh2.27 billion ($20.69 million.)
Kenya contributed $9.29 million followed by Cameroon ($3.53 million), Mali ($2.06 million), Rwanda ($1.1 million), Uganda ($0.08 million), Togo ($0.58 million), Eswatini ($0.32 million), Cote d’Ivoire ($0.57 million).
Shelter Afrique is owned by 44 African countries and two development institutions—African Development Bank and African Reinsurance Corporation.
The firm in 2013 and 2017 signed up deals with shareholders to recapitalise the company through additional equity.