Shelter Afrique Development Bank (ShafDB), a Pan-African multilateral development bank owned by 44 African governments and two institutional shareholders, plans to raise two sustainable bonds: a West African FCFA bond and an East African multi-currency bond.
The planned issuances are intended to support affordable housing, socially inclusive housing, green residential buildings, energy- and water-efficient housing, and climate-resilient housing infrastructure.
The announcement follows the publication of ShafDB’s Sustainable Finance Framework and a Second-Party Opinion from S&P Global Ratings. The opinion confirms the framework aligns with the International Capital Market Association’s Green Bond Principles, Social Bond Principles, and Sustainability Bond Guidelines. The framework also references the Loan Market Association’s Green and Social Loan Principles.
The framework establishes a structure for ShafDB to issue green, social, and sustainability bonds in African and international capital markets.
Thierno-Habib Hann, Managing Director of ShafDB, stated that the independent rating reflects alignment with international best practices and supports the bank’s strategy to finance projects with environmental and social impact.
ShafDB has not yet disclosed the proposed size, maturity, pricing, or timing of the two bonds, nor has it identified the specific projects or recipient countries.
While target amounts for the new issuances remain undisclosed, the bank has previously accessed regional markets to fund development. In Nigeria, ShafDB established a ₦200 billion local-currency bond program, issuing an initial ₦46 billion tranche. The bank also previously raised 10 billion FCFA in the WAEMU market and KSh 5 billion on the Nairobi Securities Exchange, alongside a $1 billion project preparation facility signed with Afreximbank to unlock housing investments.
Market analysts note that a sustainable bond label alone does not ensure cheaper or more accessible housing. The outcome depends on fund allocation, ShafDB’s cost of capital, project financing structures, and impact measurement methodologies.
Nabil Mahfoudh, ShafDB’s Director of Treasury, said the framework provides a platform to access the sustainable finance market, diversify funding sources, and ensure funds generate measurable impact.
Katerina Syngellakis, Africa Regional Director at the Global Green Growth Institute, added that the framework will help mobilise capital for affordable and climate-resilient housing across the continent.
Although ShafDB has not specified which individual countries or project pipelines will receive proceeds from the upcoming issuances, the bonds target markets experiencing acute housing deficits:
WAEMU Region:
For the inaugural FCFA bond in the West African Economic and Monetary Union market, World Bank estimates show a regional deficit of 3.5 million units across the eight member states (Benin, Burkina Faso, Côte dIvoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo).
The bloc requires approximately 800,000 new units annually, while commercial banks issue around 15,000 mortgages per year.
Nigeria: The Federal Ministry of Housing and Urban Development estimates a national deficit of 14.9 million units, alongside 15.2 million structurally inadequate existing homes.
Kenya: Official estimates place the national housing deficit at more than 2 million units, with an annual shortfall of roughly 200,000.
Côte d’Ivoire: Figures attributed to the Ministry of Construction, Housing and Urban Planning estimate the housing gap between 800,000 and 828,000 units.
Senegal: National deficit estimates range between 325,000 units (Centre for Affordable Housing Finance Africa) and 500,000 units (Ministry of Urban Planning, Housing and Hygiene).
Namibia: Public estimates put the national backlog at roughly 300,000 units, with broader definitions reaching up to 700,000.
According to its Development Impact Report, ShafDB financed the delivery of 1,623 housing units across Nigeria, Namibia, and Senegal in 2023. Historical cumulative delivery figures reported by the bank vary, ranging from 25,000 units on its current website to 34,217 units in its 2021 impact report.
The long-term impact of these issuances will depend on the final bond terms, project selections, and post-issuance impact reporting.