Afirm handshake may have changed the future of housing in Africa. When representatives of Shelter Afrique Development Bank and of the African Devel-opment Bank (AfDB) shook hands inside the El Mawakif conference room of the Aurassi Hotel in Algiers on Tuesday 15 July 2025, they formalised an alliance between the two institutions.

The strategic alliance was cemented on the sidelines of the 44th annual general meeting of Shelter Afrique Development Bank. It consolidates co-operation that has been active since 2018 and paves the way for structural investments in sus- tainable housing across the continent.

Mike Salawou, director of infrastruc- ture, cities and urban development at the AfDB, outlined the details of this enhanced collaboration to the assembly in Algiers. “This letter of intent demon- strates our shared commitment to sup- porting the development of inclusive, climate-resilient and financially viable housing solutions,” he said, adding that the agreement is based on four strategic pillars.

The first pillar relates to strengthen- ing policies and governance, particularly regarding land tenure and regulatory frameworks. The second focuses on pro- moting climate-smart housing, includ- ing simplifying building permit proce-dures. The third pillar aims to support the implementation of structural projects, including the preparation of construc- tion sites, the establishment of project portfolios and the planning of investment programmes.

Finally, the fourth pillar develops in- novative solutions such as CD-Alpha Plus and risk-sharing platforms.

‘Shelter Afrique has reached a certain maturity’

This signing comes after six years of fruitful collaboration, during which two concrete initiatives have already emerged from the partnership. The first of these is the Urban and Municipal Develop- ment Fund, offering $500,000 in techni- cal assistance to structure the African Fund for Sustainable Housing and Urban Development. The second is part of the Transition Support Facility, supporting the implementation of the Habitat Africa legal framework and project operations in 14 countries.

Thierno-Habib Hann, managing di- rector of Shelter Afrique, welcomed this development of the partnership, recalling how far it has come. “As a major share- holder, we have supported this vision and accompanied its implementation. Today, we are proud to see that Shelter Afrique has reached a certain maturity,” he said in his speech. He highlighted the trans- formation of the company: “It is now a modern, dynamic institution, backed by major companies and important share- holder institutions, and firmly focused on growth.”

This maturity is reflected in increased recognition on the ground, as Thierno- Habib Hann illustrated: “Every time we visit a country, partners of the African Development Plan call us to say: ‘You ab- solutely must talk to this or that country;it is up to you to support them in their housing policies’.”

The diagnostic tool

Shelter Afrique relies on innovation to optimise its interventions, and the insti- tution has developed a bio-sectoral diag- nostic tool to identify all the bottlenecks in the housing ecosystem. “This tool aims to remove obstacles to investment and create the conditions for effective devel- opment of the sector,” explained Thierno- Habib Hann as he announced its upcom- ing deployment in several countries.

These diagnostics will serve as a basis for the development of national partner- ship strategies for housing and urban development albeit tailored to local re- alities. This approach will respond to the specific challenges of each market while maintaining a coherent continental vision in the face of the scale of needs to be met.

The stakes are much higher than mere announcements. According to UN-Habi- tat, Africa needs to build 51m additional homes by 2030. With an urban population set to double by 2050, from 600m to 1.2bn, the race against time is on.

But the challenges are many: financ- ing; regulatory frameworks; training local actors; and adapting to climate change. The AfDB-Shelter Afrique alliance does not claim to be a silver bullet for this complex equation. However, it offers a coordinated institutional response to one of the continent’s most pressing chal- lenges.

The signing in Algiers marks a new stage in the structuring of the housing sector in Africa, with two pan-African financial institutions pooling their ex- pertise and resources to meet the grow- ing need for sustainable housing on the continent. This collaboration, which has been extended to countries that are not operationally active at the local level, confirms the ambition of an inclusive approach to African urban development. n

The AfDB-Shelter Afrique alliance marks a major step toward coordinated, sustainable housing development across Africa. ‘INDUSTRIAL DEVELOPMENT MUST MEET HUMAN NEEDS, OTHERWISE IT REMAINS

FRAGILE’

Gone are the days when development banks were content to finance industrial projects without concern for workers’ housing. Oluranti Doherty, head of export development at Afreximbank, explained how the alliance with Shelter Afrique can transform the approach and create an inclusive development model:

Oluranti Doherty’s speech at Shelter Afrique’s 44th annual general meeting provided fresh perspectives to the discussions. During the session on “industrialisation and the adoption of sustainable construction materials and technologies”, Doherty, the managing director in charge of export development at Afreximbank, presented the concrete results of a partnership that is redefining the rules of development financing in Africa.

This collaboration between Afreximbank and Shelter Afrique, she noted, goes beyond the traditional framework of institutional agreements. It embodies a new vision in which industrial development and social housing converge to create an inclusive growth model.

The two institutions have jointly developed a comprehensive financial toolkit: dedicated credit lines, innovative guarantee instruments and project preparation mechanisms specifically designed to support sustainable urbanisation around industrial hubs. This integrated approach makes it possible to mobilise substantial resources while pooling the sectoral expertise needed for large-scale projects.

However, innovation goes beyond financial instruments. Oluranti Doherty explained how Afreximbank is redefining its role to become a catalyst for transformation. “We also deploy policy support and advocacy tools. When we work with African governments, we don’t just finance projects – we help build the regulatory frameworks that make them possible.”

Housing as the foundation for sustainable industrialisation

This conviction has been forged through experience on the ground. Across the continent, industrial zones that lack decent housing for their workers struggle to reach their potential.

’We have seen that in projects such as the Mawengo Industrial Park in Malawi.

It was essential to integrate urban housing, schools and services. Industrial development must meet human needs, otherwise it remains fragile,” Oluranti Doherty emphasised.

This proven observation now guides Afreximbank’s intervention. The bank supports governments in reviewing industrial policies, modernising land tenure systems and adapting market access conditions for private investors. This upstream intervention creates a favourable regulatory environment that secures long-term investment while attracting the private sector.

Afreximbank’s partnership with Shelter Afrique is helping to make this vision a reality. Together, the two institutions are creating comprehensive ecosystems where industrial infrastructure and social housing complement each other. This holistic approach builds workforce loyalty, attracts investors and generates an economic network that multiplies the impact of initial investments.

The focus on small and medium- sized enterprises (SMEs) complements this approach. SMEs, which form the backbone of the economic fabric in industrial zones, benefit from privileged access to finance and increased visibility opportunities.

Oluranti informed her audience that the next Intra-African Trade Fair in Algiers, planned for 4 to 10 September 2025, will showcase this approach. Afreximbank will participate actively, in collaboration with the Algerian Ministry of Housing, to identify local players in the urban housing sector and offer them a continental platform.

“We see this event as a showcase for SMEs engaged in urban housing development. We are working with the Algerian Ministry of Housing to identify local players to highlight,” said Doherty.

This partnership and its outcomes prove that inclusive industrialisation is a realistic goal. By making housing a key pillar of African industrialisation, the Afreximbank-Shelter Afrique alliance offers a concrete response to the challenges of continental development. ‘Inclusive industrialisation is a realistic ambition – if policies, financing and public and private actors move forward together,’ said the Afreximbank representative.

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