Kigali, 01 November 2018: Minister of Infrastructure, Amb. Claver Gatete held a meeting with the new Managing Director of the Pan African Mortgage Financier, Shelter Afrique , Mr. Andrew Chimphondah to discuss financing opportunities for Rugarama Park Estate. In attendance were also the Chief Executive Officer of Development Bank of Rwanda (BRD), the Director General of Rwanda Housing Authority and representatives from City of Kigali.

The two parties discussed different aspects that led to susbstantial delays in executing the project including the internal re-organisation within Shelter Afrique, the expropriation process which took longer than expected and the design of the project.  Discussions also led to a clear plan to start the full implementation of the project.

Andrew Chimphondah, the new Director General of Shelter Afrique, which finances housing and infrastructural projects said that Shelter Afrique is now ready “to implement this huge public-private partnership project” which is expected to act as a catalyst in the region.

Under Rugarama Park Estate, Shelter Afrique and BRD plan to build about 2,800 affordable houses on a-42-hectares piece of land located in Nyamirambo Sector, Nyarugenge District. The project is a public-private partnership that involves more than the two parties. The City of Kigali and Rwanda Housing Authority are also among the partners. The project was initiated by Shelter Afrique and the Development Bank of Rwanda (BRD) and was supposed to be implemented within three years.

The entire housing project is estimated to cost $131 million. The design of the project was revised to cater for two different developers contracted to work on different pieces of land with one taking 30 hectares and the other taking 12 hectares. Development of the 30 hectares will cost about $60 million while the cost for the other with the second developer is being finalized alongside the designs. The project is expected to accommodate 14,000 people as well as create hundreds of temporary and permanent jobs.

Shelter Afrique says it has so far invested $30 million with the main beneficiaries being BRD, Bank of Kigali and private developers. Most of this investment is through lines of credit. The houses under this project to be constructed starting early next year will be cost effective with most of the planned houses expected to cost around RwF 15 million.

Shelter Afrique is a Pan-African company that currently has 44 African States as members with African Development Bank and Nigeria’s African Re-Insurance Corporation as its shareholders. Rwanda is one of the shareholders. The company is pursuing a long-term strategy to attract International Development Finance Institutions to enhance its equity.