Shelter Afrique Development Bank (ShafDB) has taken a significant step towards addressing the housing deficit in the Republic of Guinea by approving a line of credit worth $12 million for Vista Bank Guinee SA. This financing will boost the real estate development sector, particularly in the provision of affordable housing, and extend to Small and Medium Enterprises (SMEs) in the housing value chain and individual customers seeking housing construction and renovations.
Vista Bank Guinee SA, based in Conakry, will utilize the line of credit to offer financial support to real estate developers and construction firms dedicated to providing affordable housing in Guinea. The funds will also be made available to individual customers of Vista Bank for housing construction and renovation projects.
Thierno Habib Hann, the Managing Director of Shelter Afrique Development Bank, stated that this facility aligns with the institution’s strategic objectives, which include enhancing financial stability, increasing shareholder value throughout the value chain, making a developmental impact, and ensuring affordability. Mr. Hann emphasized that this agreement represents the initial step in addressing the housing deficit in the Republic of Guinea.
Vista Bank Guinee’s Managing Director, Tirmidjiou Diallo, expressed his optimism about the collaboration between the two institutions and revealed that the bank had already secured a robust pipeline of developers for this financing opportunity. Among the notable projects in progress is one that intends to implement 1,000 housing units, with the first 200 units benefiting from this financing.
According to the loan agreement, the identified developers will have a maximum of two years to execute their housing projects. Once completed, the developer’s clients, who will be the beneficiaries of these housing units, will be granted a maximum of eight years to repay the developers. This extended tenure aims to enable developers to offer more attractive payment conditions to their clients, enhancing affordability for housing solutions.
The loan is backed by Vista Group Holdings SA, the parent company of Vista Bank Guinee, headquartered in Burkina Faso, with a presence in The Gambia, Sierra Leone, Guinea, and Burkina Faso. This strategic partnership between Shelter Afrique Development Bank and Vista Bank Guinee SA represents a significant initiative to combat the housing deficit and enhance access to affordable housing in the Republic of Guinea.
