Tierno Habib Khan, Managing Director of Shelter Africa, emphasized the importance of leveraging the private sector and capital markets to close the housing gap in Africa. In an exclusive interview with CNBC Africa at the African Development Bank Annual Meeting in Abidjan, Mr. Han highlighted Shelter Africa’s renewed focus on urban development and affordable housing, which are essential drivers of economic growth, job creation and industrial expansion across the continent. Founded by AFDB in 1982, Shelter Afrik boasts a strong shareholder base comprising AFDB, African Re and 44 African countries, with plans to include institutions outside Africa.
Mr. Han emphasized the importance of mobilizing resources to address Africa’s housing shortage, estimated at more than 53 million units and requiring a staggering $1.3 trillion in investment. Mr. Han acknowledged the lack of funding within the sector and stressed that the involvement of the private sector and capital markets is essential. He disclosed that Shelter Afrik is actively involved in issuing local currency bonds across West Africa to finance affordable housing and urban infrastructure projects. Mr. Han advocated for multilateral cooperation in Africa, highlighting partnerships as the cornerstone of achieving the continent’s development goals and the ambitious goals set out in Agenda 2063.
As the global financial landscape changes rapidly, Mr. Han recognized that institutions and societies are facing unprecedented challenges. With an unwavering commitment to innovation and resource mobilization, Shelter Africa aims to establish itself as the leading resource mobilization agency recognized by the African Union. Mr. Han’s strategic vision includes combining financial options and leveraging private sector and capital market resources to drive growth in the housing and urban development sectors.
Given the diverse realities across the African region, Mr. Han described a nuanced response to Shelter Africa’s efforts. From east to west, central to south, each region of Africa has its own challenges and opportunities. Hann emphasized the importance of developing a comprehensive diagnostic framework to tailor solutions to each country’s specific needs. Shelter Afrique has implemented the VIRAL framework, which focuses on vision, institutions, regulations, stakeholders and community engagement to drive housing projects. In addition, the agency advocates the Country Housing Urban Partnership Strategy (CHUPS) and works closely with member states to prioritize areas of intervention and advance housing and infrastructure goals.
In conclusion, Mr. Han’s strategic leadership underscores Shelter Afrik’s commitment to fostering sustainable development across Africa by leveraging the power of the private sector, capital markets, and inter-institutional partnerships to close the housing gap and drive economic prosperity across Africa.
