Shelter Afrique Plans $102 Million Bond for Housing in 8 West African Countries
- Shelter Afrique Development Bank plans to raise CFAF 60 billion ($102 million) through its first sustainable bond offering to finance affordable housing across WAEMU.
- The bonds offer interest rates of 6.10% over five years and 6.30% over seven years, with subscriptions open from October 7 to 30, 2026.
- Housing finance remains limited across WAEMU, with mortgages accounting for just 3% to 5% of bank lending and a housing deficit growing by about 800,000 units annually.
Shelter Afrique Development Bank (ShafDB) plans to raise CFAF 60 billion (about $102 million) on the West African Monetary Union (UMOA) financial market to finance affordable and sustainable housing projects across the West African Economic and Monetary Union (WAEMU). It is the bank's first sustainable bond offering, with subscriptions open from October 7 to 30, 2026.
The offering, announced on Monday, October 5, is divided into two tranches. The five-year tranche offers a 6.10% interest rate, while the seven-year tranche offers 6.30%. CGF Bourse is serving as lead arranger. The International Finance Corporation (IFC) and Ecobank Group, through Ecobank Senegal, are anchor investors.
The offering will provide CFA franc-denominated financing for housing projects across WAEMU. According to the bank, matching the currency of financing with project revenues will help reduce developers' exposure to exchange rate risk, particularly on long-term projects.
Mortgage Financing Remains Limited
According to World Bank data cited by ShafDB, nearly 250,000 additional homes would need to be built each year to keep pace with population growth and urbanization across the region.
Access to housing finance remains limited. In its 2025 annual report, AFINHAB (formerly CRRH-UEMOA), a regional mortgage refinancing institution, reported that housing loans account for just 3% to 5% of commercial banks' loan portfolios across WAEMU. The institution said this share falls short of market needs. AFINHAB also estimated that the region's structural housing deficit has been growing by approximately 800,000 units annually, driven by population growth and urbanization.
AFINHAB also cited high borrowing costs as a barrier to housing finance across WAEMU. Mortgage interest rates range from 6% to 12.5%, depending on the country, with loan terms of 15 to 30 years. Other barriers include difficulties obtaining clear land titles, high construction material costs and limited access to banking services, all of which restrict households' ability to obtain mortgages.
Tapping Regional Savings
Capital markets are also becoming a source of housing finance in the region. In 2025, AFINHAB launched its first social bond offering, targeting CFAF 60 billion to refinance residential mortgages issued by banks across WAEMU. It issued a second social bond worth CFAF 40 billion in 2026. The two transactions brought the total raised under AFINHAB's social bond program to CFAF 100 billion, earmarked to refinance mortgages for low- and moderate-income households.
Shelter Afrique has previously issued bonds on African capital markets, completing 11 offerings across the continent. Its most recent issuance was in Nigeria in April 2022, when it raised 46 billion naira, approximately $110 million at the time. The new CFAF 60 billion offering is intended to help ShafDB tap regional investment capital and expand its financing capacity across WAEMU.
Chamberline Moko
