Shelter Afrique has signaled completion of its turnaround plan as it reported in the second quarter earnings.
The company’s net profit grew modestly to Sh7.8million which is a remarkable turnaround from the 2018 loss of Sh510million against budgeted loss of Sh72 million in the period ending June 30, 2019.
The profit was backed by growth in fees and commissions from new projects, performing loan book and from loan recoveries.
The Shelter Afrique Chairman, Daniel Nghidinua said that the positive indicators are a sign that the recovery process and efforts to return the company to financial sustainability are bearing fruits.
“Enhanced corporate governance practices, robust enterprise risk management, a new management team, a new strategic plan, a new business model and debt restructuring plans played key roles in fast-tracking turnaround process,” he said.
The chairmam revealed that following the 2016 disruptive events, Shelter Afrique restructured its business and developed a five year strategic plan with a primary focus of turning around the company’s financial performance from loss making to financial viability by 2020 and overall financial sustainability by2023.
“The return to profitability a head of time was an indication that the turnaround strategy has come full circle and is now ready for business,” he added.
Nghidinua said that they are committed to serve their purpose which is to assist the African continent to be able to have decent and affordable housing.
The Shelter Afrique Managing Director (MD), Andrew Chimphondah said that some of the projects the company has launched this year, include Richland Pointe, Everest Apartments, Karibu Homes in Kenya and Rugarama Housing Project in Rwanda.
“We have adopted an aggressive approach to business following our resumption of operations this year, which involves getting into meaningful partnerships and doubling our loan recovery efforts. On loan recovery, we have set a target to recover Sh1.5 billion by the end of 2019, but we have already recovered Sh1.3 billion as of Friday,” explained Chimphondah.
Chimphondah further added that they have signed a number of Memoranda of Understanding (MoU) with various African governments and institutions.
He said that they hope to reduce their non-performing loans significantly by the end of the year.
Shelter Afrique is a pan African housing finance and development institution established by African governments to address the need for sustainable and affordable housing in Africa .Its shareholders include 44 African countries.
By Hillary Wangila/Charity Kanyoro