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Abdullah Kh Almusaibeeh shakes hands with Thierno Habib Hann
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Nairobi
Shelter Afrique Development Bank (ShafDB) has signed a strategic agreement with the Arab Bank for Economic Development in Africa (BADEA) to support its transformative capital increase initiative. BADEA has approved a landmark USD 120 million facility to support the capitalization program of Shelter Afrique Development Bank, the leading Pan-African institution focused on affordable housing and urban development. The concessional financing will enable eligible member states to settle and increase their capital subscriptions to ShafDB. This initiative, developed in partnership with BADEA, introduces an innovative financing mechanism that allows eligible member states to access on-lending at competitive terms. The USD 120 million facility will be used exclusively to settle and boost capital subscriptions to ShafDB.
“This agreement with BADEA marks a critical step in strengthening our capital base and advancing our mission of financing affordable housing and sustainable urban infrastructure across Africa,” said Thierno Habib-Hann, Managing Director of Shelter Afrique Development Bank. “We are grateful to BADEA for its strong partnership and unwavering support during this pivotal phase of our institutional evolution.”
The new capital increase program includes an initial equal allocation to all member states, followed by a phased reallocation—first on a pro-rata basis, and then on a first-come, first-served basis. This approach aims to encourage active participation by member states and strengthen ShafDB’s capital adequacy in a balanced and transparent manner.
Commenting on the program, H.E. Abdullah KH ALMUSAIBEEH, President of BADEA, said: “We see this capital program as a strategic milestone in Shelter Afrique Development Bank’s evolution. BADEA is proud to support this initiative, and we remain committed to our shared mission of enabling access to decent housing and inclusive urban development across Africa.”
The need to enhance equity capital became critical following ShafDB's transformation into a development bank—a milestone formally approved by its shareholders during the Extraordinary General Meeting (EGM) held in Algiers, Algeria, in October 2023.
Building on this transformation, shareholders demonstrated strong leadership at the Annual General Meeting in June 2024 in Kigali, Rwanda, where they endorsed the transformative capital increase program. In December 2024, the board approved a capital increase of over USD 200 million.
“Expanding the capital base will enable the Bank to scale up financing along the housing value chain, access more competitive funding from international and African capital markets, and reinforce its role in addressing the housing deficit and driving inclusive urban development across its 44 member states,” added Mr. Hann.
Increased leverage
The capital increase program is designed to significantly strengthen ShafDB's balance sheet over the medium term, expand its shareholder base, and enhance debt mobilization efforts. The funds will also support the Bank’s plans to attain investment-grade credit ratings, attract new institutional investors, and expand lending and technical assistance programs across member countries.
About Shelter Afrique Development Bank (ShafDB):
Established in 1981 in Lusaka, Zambia, Shelter Afrique Development Bank is a Pan-African multilateral development bank (MDB) dedicated to promoting and financing sustainable green housing, urban development, and related infrastructure. The Bank is jointly owned by 44 African governments, along with the African Development Bank (AfDB) and African Reinsurance Corporation (Africa-Re).
ShafDB operates through four main business lines:
Financial Institutions Group (FIG)
Project Finance Group (PFG)
Sovereign and Public-Private Partnerships (PPP) Group
Fund Management Group (FMG)
About the Arab Bank for Economic Development in Africa (BADEA):
BADEA is a multilateral financial institution established in 1974 by the Arab League to strengthen economic, financial, and technical cooperation between Arab and African regions. It provides funding for development projects and supports capacity building initiatives.
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