• Afreximbank, Shelter Afrique to mobilize $1B for housing projects
• Deal includes training to boost project preparation capacity
• Africa faces 51M-unit housing deficit, rising with urban growth

The African Export-Import Bank (Afreximbank) and Shelter Afrique Development Bank have signed a strategic agreement to mobilize at least $1 billion for investment in housing and urban development across Africa.

The agreement, announced Tuesday on the sidelines of the fourth Intra-African Trade Fair (IATF 2025) in Algiers, will finance the preparation and development of projects in several sectors. These include housing, building, commercial and residential infrastructure, hospitality, industry, logistics, and special economic zones.

The agreement goes beyond simply providing funds. It also includes a capacity-building program for Shelter Afrique staff, focused on project preparation. The goal is to train experts who can transform project ideas into bankable, or financeable, initiatives.

According to Thierno-Habib Hann, CEO of Shelter Afrique, the sector in Africa faces two major obstacles: a lack of reliable data and poor project preparation. The joint project preparation mechanism with Afreximbank aims to solve the second challenge.

The International Finance Corporation (IFC) reports a global affordable housing deficit of $650 billion per year, which is expected to affect 1.6 billion people by 2025, citing the McKinsey Global Institute. The situation is particularly critical in Africa, where over 54 million people live in slums and the continent faces a housing deficit of at least 51 million units, representing a total financing need of $1.4 trillion. The IFC notes that the most affected countries are Nigeria, Egypt, the Democratic Republic of Congo, and Tanzania. The deficit is expected to reach 130 million units by 2030.

Created by 44 African states, the AfDB and Africa-Re, Shelter Afrique is a pan-African institution specializing in financing housing and urban development. It offers financial solutions and partnerships to stimulate the construction of affordable housing.

Its 2024 annual report highlights that despite some dynamism in the sector, the housing deficit continues to grow in Africa. The rapid pace of urbanization and population growth is increasing pressure on governments and private sector actors. The agreement with Afreximbank aims to accelerate the implementation of viable projects to meet the expanding demand.

Chamberline Moko