Addis Ababa, Ethiopia - 18 December 2024: Shelter Afrique Development Bank (ShafDB) and the African Union (AU) have signed a groundbreaking Memorandum of Understanding (MOU) to collaborate on addressing Africa’s critical housing and urban development challenges. 

IEA News 

The partnership which confers Shelter Afrique an Observer Status at the African Union, aligns with Agenda 2063 and underscores a shared commitment to ensuring a high standard of living, quality of life, and well-being for all African citizens. 

The MOU outlines key areas of cooperation aimed at tackling Africa’s housing deficit, promoting sustainable urban development, and advancing capacity-building efforts. 

With approximately 53 million housing units required across the continent and a $1.4 trillion financing gap, this partnership will leverage innovative solutions, resource mobilization, and policy development to create lasting impact. 

Scope of Collaboration 

The MOU emphasizes strategic collaboration in the following areas:

 ·       Sustainable Housing and Urban Development: Joint initiatives to support environmentally sustainable and climate-resilient communities.

·       Addressing the Housing Deficit: Development of strategies to reduce Africa’s housing gap and improve urban settlements.

·       Capacity Building: Training programs and workshops for policymakers, developers, and stakeholders in housing and urban development.

·       Resource Mobilization: Coordinated efforts to secure financial and technical resources, including partnerships with regional and international financial institutions.

·       Policy Development and Advocacy: Development of conducive policies and advocacy to elevate housing and urban challenges on national, regional, and international agendas.

·       Research and Technological Innovation: Collaboration on research, data collection, and the adoption of innovative technologies in housing and urban planning.

·       Environmental Sustainability: Initiatives to enhance climate resilience in housing and urban infrastructure. 

The agreement also includes provisions for cooperation with AU sub-bodies such as AUDA-NEPAD and the African Union Peace Fund to harmonize efforts across the continent. 

Operationalization of the MOU

To ensure effective implementation, ShafDB and the AU will develop a Joint Action Plan (JAP) outlining specific activities, timelines, and review mechanisms. The collaboration may also include staff secondment arrangements and supplementary agreements to address emerging areas of mutual concern. 

Ambassador Albert Muchanga, AU Commissioner for Economic Development, Trade, Tourism, Industry and Minerals (ETTIM) remarked: “We warmly welcome Shelter Afrique Development Bank as one of our strategic collaborators. Together, we shall enhance efforts to unlock Africa’s investable wealth and mobilize it towards meeting the continent’s housing deficit anchored on inclusive and sustainable urbanization.” 

Speaking at the signing ceremony, Mr. Thierno-Habib Hann, Managing Director of ShafDB, said: “This MOU marks a significant step forward in our shared vision of sustainable housing and urban development in Africa. As a pan-African multilateral development bank focused on housing and urban development, we are confident that this collaboration with the African Union will scale our ability to create transformative solutions that address the housing deficit and enhance the quality of life for millions.”

Established in 1981 in Lusaka, Zambia, Shelter Afrique Development Bank (ShafDB) is a Pan-African Multilateral Development Bank (MDB) dedicated to promoting and financing sustainable green housing, urban development and related infrastructure. It operates through a shareholding of 44 African governments and two institutional shareholders: African Development Bank (AfDB) and African Reinsurance Corporation (Africa-Re). 

The institution is involved in financing housing and related infrastructure across the value chain, both on the demand and supply sides, through its four (4) business lines: Financial Institutions Group (FIG), the Project Finance Group (PFG), the Sovereign and Public-Private partnerships (PPP) Group, and the Fund Management Group (FMG). 

The African Union is a continental organization that aims to promote unity and cooperation among African countries.  Established in May 1963 as the Organization of African Unity (OAU) and later became The African Union in July 2002, the organization’s primary purpose is to achieve peace, security, and prosperity for the people of Africa.  The AU has 55 member states and is headquartered in Addis Ababa, Ethiopia.