AFRICA’S HOUSING REVOLUTION GETS BOOST AS BADEA PLEDGES USD 120 MILLION TO SHELTER AFRIQUE DEVELOPMENT BANK

The Arab Bank for Economic Development in Africa backs ShafDB’s capital expansion, advancing affordable housing and sustainable urban growth in Africa.

Africa Finance Afordable housing Capital injection Economic growth.
BADEA and ShafDB siging the Finance Deal
BADEA and ShafDB siging the Finance Deal



In a major boost to Africa’s affordable housing and urban development drive, the Arab Bank for Economic Development in Africa (BADEA) has committed USD 120 million in concessional financing to support the capitalisation of the newly restructured Shelter Afrique Development Bank (ShafDB).

This groundbreaking financing deal is more than just a capital injection; it is a catalytic move aimed at empowering African nations to participate in a transformative housing and infrastructure agenda. The funds will help eligible ShafDB member states settle and increase their capital subscriptions, allowing the bank to scale its impact across the continent.

The Managing Director of ShafDB, Mr. Thierno Habib-Hann, hailed the agreement as a “critical step” in building a robust capital foundation for the institution. “This agreement with BADEA marks a critical step in strengthening our capital base and advancing our mission of financing affordable housing and sustainable urban infrastructure across Africa.”

Structured in a tiered format, the financing will be initially allocated equally across ShafDB’s 44 African member states. A reallocation phase based on a pro-rata system, following a first-come, first-served basis, which encourages prompt and equitable participation among shareholders.

BADEA President, H.E. Abdullah KH ALMUSAIBEEH, underscored the strategic alignment between the two institutions. “BADEA is proud to back this initiative, and we remain committed to our shared mission of enabling access to decent housing and inclusive urban development across Africa,” he remarked.

ShafDB’s transformation from a regional housing finance company into a pan-African development bank has been gathering momentum since its shareholders approved the structural shift in 2023. The capitalisation programme, ratified during the 2024 Annual General Meeting in Kigali, aims to position the bank as a leading financier of housing value chains, a gateway to international capital markets, and a driver of investment-grade creditworthiness.

The bank’s new capital base, strengthened by this BADEA facility and other ongoing capital expansion plans exceeding USD 200 million, will be leveraged through four core business lines: Financial Institutions, Project Finance, Sovereign and PPPs, and Fund Management.

With this latest commitment, both BADEA and ShafDB are demonstrating a bold and unified approach to solving Africa’s housing crisis, one that tackles the intertwined challenges of poverty, infrastructure, and urban migration head-on.

Their joint vision is clear: to accelerate the delivery of resilient, inclusive, and sustainable housing solutions that not only accommodate people but uplift communities and fuel economic growth across Africa.

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