Re-thinking capital and role of Africa club

Africa's development challenges have long been a topic of discussion, with calls for diversified sources of funding to address these issues. CNBC Africa's Tabitha Muthoni recently spoke to Shelter Afrique's Managing Director & CEO, Thierno Habib Hann, about the importance of leveraging various financial institutions for African development. The recent summit in Nairobi brought together many African heads of states, highlighting a shared goal of controlling and strengthening African development. Shelter Afrique Development Bank is at the forefront of this movement, leading the way in promoting African-owned alternatives and capital. The launch of the Alliance of African Multilateral Financial Institutions (AMFI), also known as Africa Club, signals a crucial step in diversifying funding sources beyond traditional options like IDA. By mobilizing local currency and tapping into the liquidity of local markets, African nations can access the necessary funds to support their development projects. With 44 countries as shareholders, Shelter Afrique Development Bank aims to expand its reach and impact across the continent. The AMFI relies on loans with lower interest rates and longer agreement periods, making funding more affordable for African development. By leveraging concessional funding from institutions like AIDA and blending it with commercial sources, the AMFI can scale up its financing and drive significant development impact. This strategic approach not only ensures sustainable funding but also mitigates risks related to currency fluctuations and interest rate hikes. The global debt financial architecture plays a crucial role in supporting African development goals, and African-owned multilateral financial institutions are keen on collaborating with international financiers like the World Bank and the African Development Bank. By reforming the current financial system and tapping into their local expertise, these institutions can amplify the impact of funding across the continent. The Africa Club, a recent initiative by African financial institutions, serves as both a financing and advocacy body. By advocating for a harmonized position for African capital within the global financial system, the Africa Club aims to influence policy decisions at platforms like the G20. Through data-driven insights and collaborative partnerships, African institutions can drive development initiatives more effectively and efficiently. Apart from financial resources, African countries and institutions must also focus on policy matters and regulatory frameworks to strengthen their position in the global financial architecture. Shelter Afrique Development Bank provides advisory services to support governments in creating an enabling environment for investment, particularly in sectors like affordable housing. By addressing policy challenges, regulatory constraints, and creating thematic funds for priority sectors, African institutions can attract investment, drive sustainable development, and create job opportunities. The Bank's transformation into Shelter Afrique Development Bank signals a new era in African-owned multilateral financial institutions, dedicated to transforming the housing and urban development sector across the continent. Through initiatives like the VIRAL model (Vision, Institutions, Regulatory Environment, Actors, Local Initiatives), Shelter Afrique is working closely with member states to deliver large-scale affordable housing programs and drive impactful change for African development.