(LVDE) – The Arab Bank for Economic Development in Africa (BADEA) approved on July 31, 2025, a landmark financing package of USD 120 million for the capitalization program of Shelter Afrique Development Bank (ShafDB). This initiative aims to strengthen the affordable housing sector in Africa and promote inclusive urban development.
On July 31, 2025, BADEA took a major step forward by announcing financial support amounting to USD 120 million — approximately 68.7 billion CFA francs — for ShafDB’s capitalization program. As a key institution in the field of affordable housing across the continent, ShafDB seeks to expand its lending capacity to better address the growing housing needs of its 44 member states.
This initiative, based on a strong partnership with BADEA, introduces an innovative mechanism allowing eligible member states to access loans on favorable terms. According to Thierno Habib-Hann, Managing Director of ShafDB, this agreement marks a pivotal moment in strengthening the bank’s capital base and advancing its mission to finance sustainable housing across Africa. He expressed his gratitude to BADEA for its unwavering support during this crucial phase of institutional transformation.
The capitalization program is structured around an equitable initial allocation for all member states, followed by a progressive reallocation process. This approach—beginning with a pro-rata distribution and transitioning to a first-come, first-served model—is designed to encourage active participation among member countries while ensuring fair distribution of resources.
Abdullah KH Almusaibeeh, President of BADEA, emphasized that this initiative is strategic for ShafDB’s evolution, particularly following its recent transformation into a Development Bank, approved during an Extraordinary General Assembly in Algiers in October 2023. This transformation was further reinforced by decisions made at the General Assembly in Kigali in June 2024, where shareholders endorsed an ambitious capital increase program, followed by the approval of an additional USD 200 million capitalization in December 2024.
Expanding the capital base will enable ShafDB to scale up its financing across the entire housing value chain. It will also facilitate access to more competitive funding on African and international financial markets, strengthening its role in tackling the housing deficit and promoting inclusive urban growth.
The capitalization program has been carefully designed to improve ShafDB’s balance sheet over the medium term. By broadening its shareholder base and mobilizing substantial financial resources, the bank aims to secure higher credit ratings, attract new institutional investors, and expand its lending and technical assistance programs across member states.
With the growing demand for affordable housing in many African countries, this joint initiative between BADEA and ShafDB represents not only a timely response to current challenges but also a lever for sustainable urban development. The funds raised will offer a unique opportunity to strengthen the bank’s financing capacity, thereby improving living conditions for millions of people across the continent.
Esther Grace
À propos de l'auteur
