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Wednesday, December 7, 2022

Shelter Afrique records US$1.04M in net profit for 2021

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·The announcement was made at the Company’s 41st AGM held in Zimbabwe

·Shareholders also approved the appointment of Mr Thierno-Habib Hann as the Company’s new Managing Director.

 Victoria Falls, Zimbabwe –July 28, 2022: Pan African housing development financier Shelter Afrique has posted an operating profit of US$ 1.04 million up from the operating loss of US$ 0.58 million the Company recorded in 2020, backed by impairment recoveries and effective cost control measures.

The Company contained its operating expenses at US$ 8.04 million in 2021 down from US$ 8.44 million in 2020, representing a 10% decline. It also reined in its operating expenses which dropped from US$ 8.35 million in 2020 to US$ 7.71 million in 2021.

 The Company’s gross income, however, declined slightly to US$12.09 in 2021, down from US$13.94 recorded in 2020.

Photo1
Shelter Afrique Ag. Managing Director Kingsley Muwowo(left) and Shelter Afrique Company Secretary Mrs. Juliette Kavuruganda present a gift to the Vice President of the Republic of Zimbabwe General (Rtd.) Dr. Incumbent Chiwenga after he officially opened Shelter Afrique 41st AGM currently underway in Victoria Fall, Zimbabwe. Photo 2 – Shelter Afrique Board Chairman Mr. Ephraim Bichetero addressing shareholders at 41st AGM being held in Victoria Fall, Zimbabwe. The AGM which kicked off on July 25 under the theme: Climate Change and the Built Environment, in reference to the Glasgow Conference of Parties (COP26), will close on July 30

Addressing Shareholders at the 41st Annual General Meeting held in Victoria Falls, Zimbabwe, Shelter Afrique Chairman Mr Ephraim Bichetero said the transformational initiatives undertaken by the Company and its business’ resilience enabled the Company to weather the COVID storm.

 

“This profit continues to build on Shelter Afrique’s commitment to returning to full Financial Sustainability, one of the Company’s 3 Strategic Goals, along with Enhancing Shareholder Value & Development Impact and Organisational Sustainability. I wish to commend the board, management and staff for their continued efforts towards achieving the desired results ahead of time,” Mr Bichetero said.

Photo 2 1
Shelter Afrique Board Chairman Mr. Ephraim Bichetero addressing shareholders at 41st AGM being held in Victoria Fall, Zimbabwe. The AGM which kicked off on July 25 under the theme: Climate Change and the Built Environment, in reference to the Glasgow Conference of Parties (COP26), will close on July 30.

The AGM which kicked off on July 25 under the theme: Climate Change and the Built Environment, in reference to the Glasgow Conference of Parties (COP26), will close on July 30.

 

Financial Viability

In the 2019-2023 Strategic Plan, the Company projected a return to financial viability by 2020 and overall financial sustainability and profitability by 2023, a feat that it achieved two years ahead of schedule.

Our 2021 financial performance, despite the macroeconomic and socio-political environment, is an indication that the turnaround plan recommended by the board and approved by shareholders continues to be the north-star on our course to return to financial stability and viability. As management, we are encouraged by this and look forward to the challenge of the coming years,” said Shelter Afrique Group Ag. Managing Director and Kingsley Muwowo.

 

During the year under review, total assets declined by 5 per cent from US$ 176.68 million in 2020 to US$ 167.31 Million in 2021, attributed to the 100 per cent reduction in settlement of the total debt following the repayment of US$ 34.71 Million.

 

Liquidity decreased by 33% per cent from US$ 47.41 million in 2020 to US$ 31.59 million in 2021, attributed to significant debt servicing payments on the CFA Bond and DRA debt amounting to US$ 35.87 million. However, the liquidity ratio still remained strong, closing at 19 per cent, which is 4 per cent points above the minimum threshold of 15 per cent.

 

Shareholder Funds increased by 19 per cent from US$135.74Million in 2020 to US$ 161.60 Million in 2021 due to the new capital subscriptions of US$24.85 million and the profit of US$ 1.04 Million for the year. This increase brings the total paid-up capital by 15 per cent, from US$ 157.29 million in 2020 to US$ 182.14 million in 2021.

 

“We are grateful to our shareholders for their unwavering support through the continued capitalisation of the Company, with US$ 24 million received in 2021 against a target of US$ 17 million. The receipt of these funds was achieved amidst severe fiscal constraints, and we are conscious of this,” Mr. Muwowo said. 

 

Mr. Muwowo added that the Company would continue to review various capital raising options, including new equity capital and debt options through the issuance of local currency bonds to develop and deepen Africa’s capital markets.

“We recently completed a debut 46 billion (US$110.7 million) Series 1 Fixed Rate Senior Unsecured Bond Issuance in Nigeria’s capital market under its 200 billion (US$481.3 million) bond issuance programme for housing and urban development in Nigeria.  We plan similar bond issuance in East African markets including Kenya, Uganda, Tanzania and Rwanda,” Mr. Muwowo said.

New Managing Director

Meanwhile, Shelter Afrique shareholders have approved the appointment of Thierno-Habib Hann as the company’s new Managing Director. Mr. Hann will replace Mr. Andrew Chimphondah who left the company in February.

Mr. Hann has extensive international experience in housing finance, capital markets and structured finance, and set-up and management of investment funds with banking and multilateral institutions.  Currently, he is the Asia-Pacific Lead for housing finance & capital markets at the International Finance Corporation (IFC), based in Bangkok and previously in charge of Africa and the Middle East, based in Nairobi.

“The process was very competitive, and Mr. Hann was selected based on merit and competence. He is expected to strengthen governance, be an embodiment of our values and drive the investment strategy of the Company focused on delivering large-scale affordable housing,” Mr. Bichetero said.

Mr. Hann will join the organization once he completes his current contract with the International Finance Corporation. In the interim, Mr. Muwowo will continue to serve as Acting Managing Director.

 About Shelter Afrique                          

Shelter-Afrique is a pan-African housing finance and development institution established by African governments to address the need for a sustainable housing delivery system and related infrastructure projects in Africa. Shareholders include 44 African countries, the African Development Bank, the African Re-Insurance Corporation, and Fonds de Solidarité Africain (FSA).

 

The company’s mandate is to provide financing through debt, quasi-equity, and equity to both public and private institutions for housing and urban infrastructure projects in its member countries. Shelter Afrique builds strategic partnerships and offers a host of products and related services to support the efficient delivery of affordable housing and commercial real estate. These include project finance, institutional lending, equity investments & joint ventures, trade finance, and social housing.

 

We also offer practical advice and technical assistance to a wide range of industry stakeholders.

 For more information, please visit  http://www.shelterafrique.org/

Follow Shelter Afrique on TwitterLinkedIn and Facebook

For further enquiries, please contact:

 Mike Omuodo | Media Fast PR | Tel: +254 736 014 596| Email: [email protected]|

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