About Shelter Afrique Development Bank
Founded in 1981 in Lusaka, Zambia, Shelter Afrique Development Bank (ShafDB) is a Pan-African Multilateral Development Bank (MDB) committed to financing and promoting sustainable green housing, urban development, and related infrastructure. It operates with the support of 44 African governments and two institutional shareholders: the African Development Bank (AfDB) and the African Reinsurance Corporation (Africa-Re).
ShafDB provides financing for housing and infrastructure projects across the entire value chain, addressing both demand and supply-side challenges through its four business lines: Financial Institutions Group (FIG), Project Finance Group (PFG), Sovereign and Public-Private Partnerships (PPP) Group, and Fund Management Group (FMG).
About The African Union (AU)
The African Union is a continental organization founded to foster unity and cooperation among African nations. Originally established in May 1963 as the Organization of African Unity (OAU), it transitioned to the African Union in July 2002. Its primary goal is to promote peace, security, and prosperity across Africa. The AU consists of 55 member states and is headquartered in Addis Ababa, Ethiopia.
Shelter Afrique and the African Union Forge Landmark Partnership
In a significant move to address Africa’s growing housing and urban development challenges, Shelter Afrique Development Bank (ShafDB) and the African Union (AU) have signed a groundbreaking Memorandum of Understanding (MOU). The partnership, which grants Shelter Afrique Observer Status at the AU, aligns with the African Union’s Agenda 2063 and highlights a mutual commitment to enhancing the standard of living, quality of life, and well-being for all African citizens.
The MOU focuses on key areas of collaboration, including tackling Africa’s housing deficit, promoting sustainable urban development, and advancing capacity-building efforts. With an estimated 53 million housing units needed across the continent and a financing gap of $1.4 trillion, the partnership will leverage innovative solutions, resource mobilization, and policy development to drive impactful change.
Key Areas of Collaboration
The MOU outlines the following priority areas for cooperation:
– Sustainable Housing and Urban Development: Joint initiatives focused on creating environmentally sustainable and climate-resilient communities.
– Addressing the Housing Deficit: Strategies aimed at reducing Africa’s housing gap and improving urban settlements.
– Capacity Building: Development of training programs and workshops for policymakers, developers, and stakeholders involved in housing and urban development.
– Resource Mobilization: Collaborative efforts to secure financial and technical resources, including partnerships with regional and international financial institutions.
– Policy Development and Advocacy: Crafting policies and advocacy strategies to elevate housing and urban development issues on national, regional, and global agendas.
– Research and Technological Innovation: Collaboration on research, data collection, and the integration of innovative technologies in housing and urban planning.
– Environmental Sustainability: Initiatives aimed at improving climate resilience in housing and urban infrastructure.
Additionally, the agreement includes provisions for cooperation with AU sub-organizations, such as AUDA-NEPAD and the African Union Peace Fund, to ensure coordinated efforts across the continent.
Implementing the MOU
To ensure effective execution, ShafDB and the AU will develop a Joint Action Plan (JAP), detailing specific activities, timelines, and review mechanisms. The collaboration may also include staff secondment arrangements and additional agreements to address emerging areas of mutual interest.
Ambassador Albert Muchanga, AU Commissioner for Economic Development, Trade, Tourism, Industry, and Minerals (ETTIM), commented: “We are delighted to welcome Shelter Afrique Development Bank as a strategic partner. Together, we will unlock Africa’s investable wealth and mobilize resources to address the continent’s housing deficit, fostering inclusive and sustainable urbanization.”
Thierno-Habib Hann, Managing Director of ShafDB, also remarked at the signing ceremony: “This MOU represents a significant milestone in our shared vision for sustainable housing and urban development across Africa. As a pan-African multilateral development bank, we are confident that this collaboration with the African Union will enhance our capacity to create transformative solutions that address the housing deficit and improve the quality of life for millions of Africans.”