This article was produced with the support of Shelter Afrique Development Bank
A firm handshake may have changed the future of housing in Africa.
El Mawakif is an Arabic name that evokes commitment and when representatives of Shelter Afrique Development Bank and African Development Bank shook hands inside the El Mawakif Conference Room of the Aurassi Hotel in Algiers on Tuesday 15 July 2025 it seemed like a very fitting setting for the formalisation of the alliance between the two institutions.
The formalisation of their strategic alliance took place on the sidelines of Shelter Afrique Development Bank’s 44th annual general meeting and consolidates a cooperation that has been active since 2018 while paving the way for structural investments in sustainable housing across the continent.
Mike Salawou, Director of Infrastructure, Cities and Urban Development at the AfDB, outlined the details of this enhanced collaboration to the assembly in Algiers. ‘This letter of intent demonstrates our shared commitment to supporting the development of inclusive, climate-resilient and financially viable housing solutions,’ he said, adding that the agreement is based on four strategic pillars.
The first pillar relates to strengthening policies and governance, particularly regarding land tenure and regulatory frameworks. The second focuses on promoting climate-smart housing, including simplifying building permit procedures. The third pillar aims to support the implementation of structural projects, including the preparation of construction sites (CDX), the establishment of project portfolios and the planning of investment programmes. Finally, the fourth pillar develops innovative solutions such as CD-Alpha Plus and risk-sharing platforms.
“Shelter Afrique has reached a certain maturity”
This signing comes after six years of fruitful collaboration during which two concrete initiatives have already emerged from the partnership: the first from the Urban and Municipal Development Fund, with $500,000 in technical assistance to structure the African Fund for Sustainable Housing and Urban Development. The second is part of the Transition Support Facility, supporting the implementation of the Habitat Africa legal framework and project operations in 14 countries.
Thierno-Habib Hann, Managing Director of Shelter Afrique, welcomed this development in the partnership, recalling how far it has come. ‘As a major shareholder, we have supported this vision and accompanied its implementation. Today, we are proud to see that Shelter Afrique has reached a certain maturity,’ he said in his speech.
The CEO highlighted the transformation of the company: “It is now a modern, dynamic institution, backed by major companies and important shareholder institutions, and firmly focused on growth.”
This maturity is reflected in increased recognition on the ground, as Thierno-Habib Hann illustrated: ‘Every time we visit a country, partners of the African Development Plan call us to say: “You absolutely must talk to this or that country; it is up to you to support them in their housing policies.””
The diagnostic tool
Shelter Afrique relies on innovation to optimise its interventions, and the institution has developed a bio-sectoral diagnostic tool to identify all the bottlenecks in the housing ecosystem. “This tool aims to remove obstacles to investment and create the conditions for effective development of the sector,” explained Thierno-Habib Hann as he announced its upcoming deployment in several countries.
These diagnostics will serve as a basis for the development of national partnership strategies for housing and urban development albeit tailored to local realities. This approach will respond to the specific challenges of each market while maintaining a coherent continental vision in the face of the scale of needs to be met.
The stakes are much higher than mere announcements. According to UN-Habitat, Africa needs to build 51 million additional homes by 2030. With an urban population set to double by 2050, from 600 million to 1.2 billion, the race against time is on.
But the challenges are many: financing, regulatory frameworks, training local actors, and adapting to climate change. The AfDB-Shelter Afrique alliance does not claim to be a silver bullet for this complex equation. However, it offers a coordinated institutional response to one of the continent’s most pressing challenges.
The signing in Algiers marks a new stage in the structuring of the housing sector in Africa, with two pan-African financial institutions pooling their expertise and resources to meet the growing need for sustainable housing on the continent. This collaboration, which has been extended to countries that are not operationally active at the local level, confirms the ambition of an inclusive approach to African urban development.
