This archive report was first published on 21 September 2019.
Shelter Afrique, a Pan-African housing development lender, has announced a return to profitability with a net profit of Sh7.8 million for the first half of 2019. This comes after posting a Sh500 million loss in the same period last year and a loss of Sh930 million for the full year 2018.
According to Shelter Afrique's Managing Director Andrew Chimphondah, the profit is a 'big milestone' for the company. The lender's chairman Nghidinua Daniel attributed the return to profitability ahead of time to the success of the turnaround strategy.
Shelter Afrique had halted undertaking of new projects in 2016 to pave way for restructuring of its operations and for the development of a new strategic direction. The company has come up with a plan that will focus mainly on the company's financial performance from loss-making to financial viability by 2021 and overall financial sustainability by 2023.
With the resumption of lending, the company's target for 2019 is to payout at least $20 million (Sh2 billion). The lender has also set a loan recovery target of Sh1.5 billion by the end of 2019 and has so far recovered Sh1.3 billion.
Shelter Afrique has shifted its strategy, preferring to work with established developers. The company has done a debt restructuring with eight lenders, reducing the debt from $110 million (Sh11.4 billion) to $84 million (Sh8.7 billion).
