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