Shelter Afrique’s Solutions to Financing of Large scale affordable housing in Zimbabwe Mr. Yankho Chitsime Shelter Afrique
Shelter Afrique’s Solutions to
Financing of Large scale affordable
housing in Zimbabwe
Mr. Yankho ChitsimeShelter Afrique
Contents
1 Shelter Afrique Links to Zimbabwe
2 Snapshot of Shelter Afrique Products
3 Private Public Partnerships (PPPs)
4 Roles of Parties in PPPs
5
Shelter Afrique’s role in Financing of PPPs
Case Study
6 Shelter Afrique key partners in Zimbabwe
• Shelter Afriques’ mission is to be the pre-eminent provider of finance,
advisory and research solutions through Public and Private Partnerships
(PPPs) to address the housing crisis in Africa and achieve sustainable
developmental impact
• Zimbabwe has been a shareholder since 1993
• Zimbabwe is viewed as a key market for Shelter Afrique both from supply
and demand
• Shelter Afrique currently considering having regional office in Zimbabwe
Shelter Afrique links to Zimbabwe
• Approvals to-date USD57 million with disbursements of USD47 million, largely
to financial institutions
• Shelter Afrique views its PPP product as a key solution to financing of Large
Scale Affordable Housing in Zimbabwe
Shelter Afrique links to Zimbabwe
Lines of Credit to
Financial Institutions
to support both the
demand and the
supply side of
affordable housing.
Snapshot of Current Products & Services
Lines of Credit
Product designed to
support our
shareholders in
delivering
affordable, large
scale, high impact
housing schemes
Private Public Partnerships (PPP)
Establishment of Rental
Housing Companies in
partnership with public
and private sector
sponsors as partial exit
vehicles for large scale
PPP Housing projects in
which SHELTER-AFRIQUE
has invested.
Rental Housing
This product is
tailored along the
lines of typical micro-
finance solutions, but
in this case, the
beneficiaries use the
funds accessed for
housing provision.
Housing Microfinance
Targeting Metropolitan
Authorities, Municipal
Authorities, State
Governments and
County Governments
who are often
responsible for provision
and maintenance of
neighbourhood
infrastructure.
Snapshot of Current Products & Services (contd.)
Last Mile Infrastructure
Designed to build
capacity for our
investee partners
and to provide
catalytic funding.
Equity Investments & JVs
Designed to assist public
and private sector
clients in structuring and
procuring viable
projects, particularly
public-private
partnership projects.
Technical Assistance
Designed to provide
crucial linkages for
the transfer and
importation of key
construction industry
needs.
Trade Finance
Public-Private-Partnerships
Lack of large scale affordable housing suppliers across our member
countries due to capacity constraints
Designed to support government and government agencies
wishing to partner with credible private sector players to deliver
affordable housing units at scale (over 1,000 housing units per
project).
Designed to support Private Developers focused on large-scale
housing (over 1,000 housing units per project), with defined
Government involvement.
1.25 million shortage of housing, supporting a focus on Large Scale
Affordable Housing
Existing depth in State and Private Sector capacity
The
Gap
The
Market
The
Opportunity
in Zimbabwe
Roles of Parties in PPPs
Land (Granted directly or through
a Gov Agency to Project SPV)
Off-site infrastructure (access
roads, power, water, sanitation
and waste management, etc)
Social infrastructure (education,
health, security, social amenities,
etc) if possible if not to be
integrated in project planning
and funding
Off-take Direct salary withdrawals
from pre-selected and pre-
approved buyers
Planning
Design & Planning
Execution
Project Execution
Insurance
Insurance coverage (life,
disability and job loss)
Syndicated Funding
• Construction Finance
• Mortgage finance
StatePrivate Sectors &
OthersFinancing
• Construction Finance
• Fully Mortgage Finance
Advisory
• Technical
• Affordable Housing Market
Analysis
• Aligning PPP Framework to
benefit housing
SHAF
Shelter Afrique Financing of PPPs
• bankCatalytic funding:
- Equity
- Quasi-Equity
- Mezzanine
- Sub/Junior Debt
CONSTRUCTION FINANCE
Syndication of
balance of Project
budget from:
- Bi & Multi laterals
- Institutional
investors
Capital raising for
social infrastructure if
required from:
- Bi & Multi laterals
DFIs
- Institutional
investors
Types:
- Large/Regional
banks with
appetite for
mortgage
financing
- Specialized
mortgage
refinancing
institutions (NMRC,
etc)
Mobilization of LT
mortgage finance if
required from:
- Bi & Multilaterals
- Capital Markets
Instruments:
- Long-term on-
lending facilities
- Long-term bonds
(later stage)
MORTGAGE FINANCE
SHAF CO-FUNDERS SHAFMORTGAGE
PROVIDERS
PPP Structure (Vanilla) – SHAF as Facilitator
STATE OF ZIMBABWE
DEVELOPER SHAF & BANKS
PROJECT
BUYERS
Pre-Sales
Provision of Land
& Infrastructure
Funding Implementation
Off-take
Case Study
• Country: Rwanda
• City: Kigali
• Project Company: Rugarama Park Estate Limited
• Shareholding: SHAF 50%: Development Bank of Rwanda (BRD) 50%
• Investment: SHAF US$3m: Development Bank of Rwanda (BRD) US$3m
• Land Provided by City of Kigali and transferred to the Project Company
• Land Size: 43.3Ha (7 kms from the CBD of Kigali)
• Developer: Remote Partners Group (US$3m Invested)
• Developer Investment: US$3m
Rugarama Park Estate - Summary
• 1,960 Residential Units + 40 Commercial Sites
Rugarama Park Estate - Summary
Type Size (m2) # of Units Price RWF / Unit Price USD / Unit
Studio 42 154 11,584,080 12,742
2 Bed Apartment 61 1,302 19,188,010 21,107
3 Bed Apartment 95 236 37,107,000 40,818
2 Bed Row House 72 268 27,732,600 30,506
Total 1,960
Rugarama Park Estate – Site Plan
Rugarama Park Estate – Studio Unit
Rugarama Park Estate – 2 Bed
Apartment
Rugarama Park Estate – 3 Bed
Apartment
Rugarama Park Estate – 2 Bed Town
House
Rugarama Park Estate – Impression
Rugarama Park Estate – Impression
Shelter Afrique Key Partners in Zimbabwe
• National Government
• Provincial Governments
• Urban Councils
• Local Banking institutions such as CABS, CBZ, etc.
• Zimbabwe Property Developers Association
• Zimbabwe Association for Housing Finance (ZAHF)
Thank You