Shelter Afrique Development Bank and Vista Group Holding have signed a memorandum of understanding to explore ways to increase long-term financing for affordable housing across West Africa, as financial institutions seek to address the region’s housing deficit.
The agreement was signed on Oct. 16 on the sidelines of the International Monetary Fund and World Bank Group annual meetings in Bangkok, Thailand. It sets out a framework for cooperation in housing finance, risk-sharing mechanisms and technical assistance, although the institutions did not disclose financial commitments or specific project targets.
The partnership brings together Shelter Afrique Development Bank’s housing finance expertise and long-term capital with Vista Group’s banking network, with the aim of improving access to funding for developers and supporting the delivery of affordable homes.
“Our partnership with Vista Group connects Shelter Afrique Development Bank’s long-term capital with a banking network that spans across Africa,” said Thierno-Habib Hann, managing director of Shelter Afrique Development Bank.
“Together, we can finance more developers, put more households in homes, and create jobs across the housing value chain in every market we serve,” he said.
For Vista, the agreement offers a route to expand its involvement in affordable housing finance across its markets, while potentially broadening the range of lending opportunities available through its banking operations.
“This partnership with Shelter Afrique Development Bank strengthens our ability to bring long-term, affordable housing finance to the communities we serve across our markets,” said Yao Kouassi, group managing director of Vista Group Holding.
“We look forward to turning this shared ambition into homes,” he said.
Shelter Afrique Development Bank is a pan-African multilateral development bank focused on financing sustainable housing, urban development and related infrastructure. It provides financing, advisory and research services and works with public- and private-sector partners to address Africa’s housing challenges.
Vista Group Holding is a financial services holding company seeking to build a pan-African financial institution. Its business priorities include banking for micro, small and medium-sized enterprises, trade and supply-chain finance, corporate banking, leasing and insurance.
The agreement comes as affordable housing remains a significant financing challenge across African markets, where developers often require long-term capital to deliver homes at prices accessible to lower- and middle-income households.
The practical impact of the partnership will depend on how the two institutions translate the memorandum into financing arrangements, eligible projects and lending programmes. The announcement did not specify when funding would begin, the amount of capital that could be mobilised or the number of homes the initiative could support.
SUPPORT AFRICAN BUSINESS JOURNALISM
Help XOL Africa expand independent business reporting across Africa.
SUPPORT XOL AFRICA →
