Family Homes Funds, Nigeria’s largest Social Housing Fund has signed a Memorandum of Understanding (MoU) with Africa’s premier Housing Finance Institution, Shelter Afrique towards building more affordable homes in Nigeria.
The MoU signed in Abuja by the Managing Director/Chief Executive Officer of Family Homes Funds, Mr. Femi Adewole and Shelter Afrique’s Chief Executive Officer, Mr. Andrew Chimphondah provides a well-suited partnership which will increase the number of affordable housing projects in Nigeria.
During his remarks, Mr. Adewole said “This is a small but momentous occasion as Shelter Afrique has been a housing financing organisation for more than 35 years with significant experience across very many countries; on the other hand, Family Homes Funds is barely a couple of years old.
The partnership and relationship birthed out of this MOU provide the beginning of what I hope and expect-and we will work assiduously for it to be- a very successful relationship, ensuring that we create homes for Nigerians who need it most.”
In his responding remarks, Mr. Andrew Chimpondah of Shelter Afrique thanked the board and management of Family Homes Funds. He emphasized the strategy of Shelter Afrique in delivering affordable housing and identified Nigeria as its biggest market; citing a 22-million deficit out of the total 56-million housing deficit in Africa and Nigeria’s shareholding in Shelter Afrique.
“We are very grateful to get into a partnership with Family Homes Funds and we are delighted to sign the MOU. One of the things we realised when we re-strategized over the last few years, is that beyond financing affordable housing, one of our strengths was leveraging our partnerships and networks. So, we are very happy to be signing today, not only because it fits seamlessly with our strategic direction, but because Nigeria is a key market and Family Homes Funds have a better understanding of the local market and we are looking forward to getting into a long-term partnership.
“The Idea Is to co-fund specific deals, share market knowledge and operate in line with best practices. In the end, our core vision is to develop decent and affordable homes for all Nigerians and if we work together to solve the affordability challenge on the demand and supply side, we will be able to achieve a lot.’ he said.
The signing of the MOU is a first in what will be a weekly series of meetings held by a committee with members from both organisations. The meetings are expected to result in specific co-funded affordable housing projects which have been identified as low hanging fruits-projects that are affordable and below N9million per home. Both firms have committed to co-finance at least one project before the end of 2019.
Family Homes Funds was set up as a private limited liability company in September 2016 with the Federal Ministry of Finance and Nigeria Sovereign Investment Authority as founding shareholders.
The Fund has a commitment to put 500,000 families in homes by 2024 and in the process, create 1,500,000 jobs.
On the other hand, Shelter Afrique is a pan-African finance institution that exclusively supports the development of the housing and real estate sector in Africa. A partnership of 44 African Governments, the African Development Bank (AfDB) and the Africa Reinsurance Company, Shelter Afrique builds strategic partnerships and offers a host of products and related services to support the efficient delivery of affordable housing and commercial real estate.
The partnership will see Shelter Afrique bring its wealth of Pan-African Experience while FHFL will bring its knowledge of the Nigerian market and expertise.