Shelter Afrique posts modest profit of U$1.34m, salutes shareholders

20Jan 2022
By Guardian Reporter
The Guardian
Shelter Afrique posts modest profit of U$1.34m, salutes shareholders

FOR the first time since 2014, Shelter Afrique has managed to make an operating profit of U$1.34 million and comprehensive income of U$1.85 million in 2019 thanks to shareholders support.

Shelter Afrique’s managing director cum CEO, Andrew Chemphondah.

In its latest annual for 2021, the Nairobi based pan African housing financial institutions said shareholders such Tanzania which paid U$2.7 million in September last year and an addition U$407,284.97 in October to clear its capital requirement. The payment increased the country’s shareholding from 1.54 to 1.72 percent.

“It will be noted that the critical financial highlight is that Shelter Afrique (SHAF) has, for the first time since 2014, returned and posted a positive operating profit and comprehensive income of U$1.34 million and U$1.85 million, respectively,” the report stated.

Signed by SHAF’s Board Chairman, Dr Steve Mainda, the report added that the move indicates a gradual return to financial sustainability along with enhancing shareholder value and development impact and organisational sustainability.

“Notwithstanding the challenging economic environment in 2020, it is gratifying to report that the company was successful in concluding the much-anticipated Debt Restructuring Agreement (DRA) with six Development Finance Institutions (DFIs) and two commercial banks, namely the African Development Bank, the European Investment Bank, Agence Francaisse du Development, KFW, West African Development Bank (BOAD), Islamic Development Bank and NCBA and Ghana International Bank,” Dr Mainda said in the chairman’s report.

The SHAF Board Chair further noted that the company delivered strong financial performance and position for the year ended 31st December 2020 thanks to the completion of the DRA which signified the normal resumption of business.

“This means that the company can return to the financial markets to mobilise new resources to fund the business,” he noted while adding that despite the Covid-19 outbreak, SHAF is back to business. “I would like to express our sincere gratitude to our shareholders and lenders for their support through the continued capitalisation of the company, with U$ 16.66 million received in 2020,” Dr Mainda added.

SHAF’s CEO and Managing Director, Andrew Chimphondah backed his Chairman saying there is no better time to announce that after six years of perennial losses, the company recorded a modest profit of U$1.85 million in 2020.

“This provides a solid foundation for the company to redefine itself for the next 40 years without that albatross,” Chemphondah said adding that the U$D 1.85 million made in 2020 is an improvement from a loss of the U$1.26 million recorded in 2019.

He said the company also ended the year with a high liquidity position with a cash balance of U$47.4 million which was a solid liquidity ratio of 27 percent, 12 percentage points above the 15 percent prudential limit.

“I would like to thank the shareholders for their support manifested by their capital contributions and our esteemed lenders for signing the DRA which gave the company a new lease of life,” the SHAF CEO and MD added.