ADDIS ABABA, Ethiopia — Shelter Afrique Development Bank and the African Union signed a landmark agreement Tuesday to address Africa’s pressing housing and urban development challenges, paving the way for a new era of cooperation and collaboration.
The memorandum of understanding, signed in a ceremony at the African Union headquarters in Addis Ababa, Ethiopia, aims to tackle the continent’s estimated 53 million housing unit deficit and $1.4 trillion financing gap.
Under the agreement, the two organizations will collaborate on sustainable housing and urban development initiatives, capacity building, resource mobilization and policy development. They will also work together to promote innovative financing mechanisms and mobilize resources from international partners.
Shelter Afrique Development Bank will also be granted observer status at the African Union, enabling it to participate in AU meetings and decision-making processes.
Ambassador Albert Muchanga, AU Commissioner for Economic Development, Trade, Tourism, Industry and Minerals, hailed the partnership as a significant milestone in the AU’s efforts to address Africa’s housing and urban development challenges.
“We warmly welcome Shelter Afrique Development Bank as one of our strategic collaborators,” Muchanga said. “Together, we shall enhance efforts to unlock Africa’s investable wealth and mobilize it towards meeting the continent’s housing deficit anchored on inclusive and sustainable urbanization.”
Muchanga emphasized that the partnership aligns with the African Union’s Agenda 2063, which aims to promote sustainable development and transform the continent’s economies.
Thierno-Habib Hann, Managing Director of Shelter Afrique Development Bank, emphasized the significance of the partnership. “This MOU marks a significant step forward in our shared vision of sustainable housing and urban development in Africa,” Hann said.
“As a pan-African multilateral development bank focused on housing and urban development, we are confident that this collaboration with the African Union will scale our ability to create transformative solutions that address the housing deficit and enhance the quality of life for millions,” Hann added.
The partnership is expected to have a significant impact on Africa’s housing and urban development landscape. According to the African Union, the continent’s housing deficit is estimated to be around 53 million units, with a financing gap of $1.4 trillion.
The agreement is also expected to promote sustainable urban development and address the challenges posed by rapid urbanization in Africa. The continent’s urban population is projected to grow from 472 million in 2015 to over 1.3 billion by 2050, according to the United Nations.
The partnership between Shelter Afrique Development Bank and the African Union is a significant step towards addressing these challenges and promoting sustainable housing and urban development in Africa.
