Innovative capital raising to drive affordable housing in Africa

With Africa facing a significant housing deficit, the financing sector is aiming to introduce innovative funding solutions to address the continent's substantial financing requirements. CNBC Africa's Aby Agina recently interviewed Nisan Abdulkader, the Head of External Affairs & Communication at Shelter Africa Development Bank, to delve into the pressing issue of affordable housing in Africa. Abdulkader discussed the upcoming launch of the First African Caucus for Finance for Housing Ministers and Urban Development, set to take place the following day. The event will see the participation of key stakeholders from organizations such as the African Alliance for Multilateral Financial Institutions, Avraxem Bank, ZEPRI, and TDB, providing insights and initiatives to benefit the housing sector in Africa. One notably significant aspect of the meeting is the collaboration and knowledge sharing among the 44 shareholder countries of Shelter Africa Development Bank, making it a pivotal event for shaping the future of affordable housing across the continent. Amidst the discussions, a key focus will be on innovative finance mechanisms for affordable housing, the de-risking of the sector, and the exploration of case studies to inform best practices within Africa. Abdulkader emphasized the importance of leveraging existing local practices to scale up and finance the housing sector effectively, ultimately delivering on the mandate of providing affordable housing for all in Africa. The estimated housing deficit in Africa stands at approximately 53 million units, highlighting the immense need for funding, which is estimated to be around 1.4 trillion USD to bridge the gap. Shelter Africa Development Bank plays a crucial role as the pan-African housing development finance institution in spearheading efforts to address this deficit. Sustainability and the integration of green and climate-resilient housing solutions are paramount for the bank. Abdulkader underscored the commitment to incorporating ESG principles and climate-resilient technologies into projects, emphasizing the importance of building future houses in a sustainable manner. The bank's focus on green, affordable housing aligns with the Sustainable Development Goals, with a strategic partnership in place with IFC Edge to advance these initiatives. As the AGM progresses, participants will have the opportunity to visit innovative projects like the ADHI Rwanda Wiza Riverside project, showcasing scalable solutions for the continent. Looking ahead, the anticipated outcomes of the AGM include reaffirming shareholder commitment, promoting thought leadership, and enhancing innovation within the affordable housing space. With a focus on engaging in public-private partnerships and driving impactful projects, Shelter Africa Development Bank aims to emerge as a key contributor to addressing Africa's housing challenges.