Shelter Afrique Development Bank (ShafDB) has approved a $12 million line of credit for Vista Bank Guinee SA in Conakry, Guinea, to address the housing deficit in the country. This funding will support the real estate development sector, focusing on affordable housing, as well as Small and Medium Enterprises (SMEs) in the housing value chain and individual customers seeking housing construction and renovations.

Vista Bank Guinee SA will use the line of credit to provide financial assistance to real estate developers and construction firms dedicated to delivering affordable housing in Guinea. The funds will also be available to individual customers of Vista Bank for housing construction and renovation projects.

Thierno Habib Hann, the Managing Director of Shelter Afrique Development Bank, emphasized that this initiative aligns with the institution’s strategic goals of enhancing financial stability, increasing shareholder value across the value chain, making a developmental impact, and ensuring affordability. He pointed out that this agreement marks the first step in addressing Guinea’s housing deficit.

Tirmidjiou Diallo, Managing Director of Vista Bank Guinee, expressed optimism about the collaboration and revealed that the bank already has a robust pipeline of developers for this financing opportunity. Notable projects include one planning to implement 1,000 housing units, with the first 200 units benefiting from this financing.

According to the loan agreement, 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, and this partnership represents a significant initiative to combat the housing deficit and improve access to affordable housing in Guinea