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                                         May 2009                    Bulletin No. 20

      Table of

3    Perspectives of US                        ver the years, traditional mortgage products have been known to be safe,
     Subprime Mortgage                         stable, conservative and widely acceptable investments to be made by
                                               both families and financial institutions. Governments, whether from the
     Crisis                             right, left or centre, have always provided support, incentives and other fiscal
6    Managing Risk                      measures to spur and support housing investments and mortgage lending. This
     in Housing Finance                 is because home ownership and acquisition has been on the top priority list for
                                        most families. Researchers have extolled the sterling benefits of home ownership
     Institutions                       and mortgage lending as the bedrock of modern society, a store of wealth, a
11 Experimental                         key driver of economic and social development, a cross cutting multi-sectoral
     Reimbursable                       investment with both backward and forward linkages. We can write volumes
                                        about the great contribution the housing and mortgage sector has made to
     Seeding                            modern economic development. It has no doubt given both depth and breadth to
     Operations                         modern financial systems with transactions translating into trillions of US dollars
12 Did You Know ?                       annually. No nation has made progress without developing its housing and home
                                        ownership sector because it touches the life and well being of families.
12 Namibia Country
     Profile                            Then came globalisation, financial innovation, derivatives, competition amongst
13 Book Review                          other things supposedly designed to extend and expand access and affordability
                                        of housing finance not just in one country but across the globe. At least this is
14 Staff News                           what we were meant to believe. Although these are great ideas that ordinarily
15 Project Profiles                     should help market players and politicians achieve their common objective:
16 Indelible                            delivering services and value to key stakeholders. This should have been so until
                                        greed and more greed got in, market liberalisation blossomed and regulators
                                        went to sleep. What then started as financial innovation by way of re-packaging
Editor                                  non-traditional mortgages or subprime mortgages in USA and selling them to
Osita Okonkwo                           investors across the world snowballed into something else and contaminated the
Assistant Editor                        banking system, the financial markets and eventually led to economic crisis.
Kahumbya Bashige
                                        The risks associated with subprime mortgages or borrowers were diced, sliced,
ShleterNet is published by Shelter      repackaged and mitigated (through AAA credit insurance) and sold to big, over
Afrique and distributed free of
charge.                                 century old triple A institutions and sophisticated investors. Huge profits were
                                        made and declared, assets became over priced and the crash came. Some experts
Letters to the Editors and              called it asset bubble and burst, others say it was market correction, a time bomb
contributions are welcome and           that was bound to explode and so on. Regulators did not pick this up, experts
should be addressed to:
The Editor                              failed to predict it, few that sensed it failed to speak up perhaps because nobody
ShelterNet                              would believe them. But the fact is that families became homeless as they lost
P.O. Box 41479                          their houses and savings. Confidence, the bedrock of the financial system, was
00100 Nairobi, Kenya                    lost; jobs were lost, and the economy nosedived. Reactions though initially slow
                                        have been furious, varied and public sector driven. The governments are now
The articles in this publication        strongly back in the saddle of economic management and calling the shots: bailing
may be reproduced without prior         out banks, the auto industry, Wall Street, forcing companies into bankruptcy,
permission but acknowledgement will     sacking CEOs. Who said the days of big government were long gone?
be appreciated.

(The views expressed here are not
necessarily those of Shelter Afrique)                                                              Continued on Pg. 2

    Continued from Pg. 1

    These are difficult times though. The real issues however
    are how Africa has been affected and how it is dealing with
                                                                   believe that in order to ensure that current economic crisis
                                                                   does not cause damage to Africa’s housing sector, efforts        Perspectives of the U.S Subprime Mortgage
                                                                                                                                    Crisis and the Financial Contagion: Lessons
    the situation. Some feel that because of the low level of      should be continued to keep inflation low, promote savings
    Africa’s share of global trade and capital flows, the impact   and capital markets development, to accelerate financial
    of the subprime, and economic crisis has not been as serious   sector and land reforms and to ensure continued economic
    as we had feared. Others have a different view: the capital
    markets in most countries are down, commodity prices for
                                                                   growth, amongst other things.
                                                                                                                                    and Implications for Mortgage and Financial
    Africa’s major exports have dropped significantly, Diaspora
    remittances have dried up and economic growth has slowed.
                                                                   At Shelter Afrique, we would continue to provide the
                                                                   leadership needed to mobilise resources for Africa’s housing     Markets development in Africa
    If these are not serious signs of problems, what else would    sector. In this regard and in keeping with our strategic plan,
    be?                                                            our partners have shown strong support and confidence in
                                                                   Shelter Afrique. Over the past one year, we have mobilised       By Professor Jay Sa-Aadu - Professor of Finance and Real Estate, Henry B. Tippie
    The housing sector has not been spared, albeit not by way      USD 70 million in new funds from our partners and the            College of Business, University of Iowa, USA
    of subprime mortgages given that most banks in Africa play     capital markets for housing development. This will help
    more on the conservative side in their mortgage lending        us to extend more financing to small and medium sized
    activities. However the general economic downturn means        developers and to expand to other markets and countries.
    that demand-side variables have been negatively impacted.      This is a good sign of a market that is bound to grow, which     Introduction                                                       capital markets development in Africa. It concludes by
    Developers and banks in Africa have however done excellently   will help to improve the housing and living conditions of                                                                           emphasizing the need for African economies to engage in

    well in keeping the housing market afloat through supply of    our people.                                                           he global financial crisis triggered by the collapse of       financial innovations, but backed by strong primary markets
    homes and credit. Their confidence in the market has helped                                                                          the U.S. market for subprime mortgages and mortgage           and associated infrastructure, efficient risk transfer and

    to keep the emerging housing market growing. Governments                                                                             backed securities linked to them has had major impacts        sound risk management mechanisms.
    in Africa have however not done much like their counterparts                                                                    on world economies. The crisis has degenerated into a
    in the developed countries to help the housing sector. We                                                                       banking, credit crunch, liquidity and market-to-market
                                                                                                                                                                                                       Innovations and transformations in global
                                                                                                                                    assets crisis with severe effects. Losses linked to U.S.
                                                                                                                                    subprime mortgages are estimated to reach US$400 billion.          financial markets
                                                                                                                                    The crisis has created instability in global financial markets,
                                                                                                                                    exposing the weakness in the global financial architecture,        Fundamental changes have occurred in the structure of
                                                                                                                                    which suggests a need to rethink financial regulation in a         financial architecture and financial intermediation over
                                                                                                                                    broader context.                                                   the past several decades, that include securitization and
                                                                                                                                                                                                       the globalization of financial markets. The changes have
                                                                                                                                    This paper discusses factors that led to the global                created opportunities for capital markets to play a larger
                                                                                                                                    mortgage and financial crisis in general, focusing on; the         role in the market, and for capital market-based and
                                                                                                                                    transformations in global financial infrastructure and             banking-based solutions of credit risk problems, as opposed
                                                                                                                                    architecture that are changing the manner in which capital         to insurance based solutions. Consequently, both firms and
                                                                                                                                    is raised, the subprime mortgage collapse in the U.S and its       households can borrow from capital markets directly or
                                                                                                                                    origins, the catalytic role of securitization in the debacle and   indirectly. In addition, credit rating agencies and third party
                                                                                                                                    the ensuing financial contagion. While stressing the need          guarantees are also playing a larger role in capital markets
                                                                                                                                    for stability in mortgage and financial markets, the paper         development as facilitators of the securitization process
                                                                                                                                    draws important lessons and implications for mortgage and          and other structured finance products. This evolution has

    Loan Signing with Simbamanyo Estate, Uganda.
                                                                                                                                    A completed Sebel Invest Housing project in Dakar, Senegal.                                                Continued on Pg. 4

2                                                                                                                                                                                                                                                                        3
    Continued from Pg. 3                                                                                                               Continued from Pg. 4

    Perspectives of the U.S Subprime Mortgage Crisis and the Financial                                                                                                                                                      particularly among private label MBS,
                                                                                                                                                                                                                            CMOS, and CDOS. The broader context
    Contagion: Lessons and Implications for Mortgage and Financial Markets                                                                                                                                                  of these innovations is financial
    development in Africa                                                                                                                                                                                                   innovation or structured finance. The
                                                                                                                                                                                                                            principal form of structured finance
    brought about important changes in the way in which                 the full amount of interest due, and the unpaid interest is                                                                                         is capital market-based risk transfer
    capital markets policies and practices interact. What used          added to outstanding loan amount. Piggyback mortgages                                                                                               technique of asset based securitization,
    to be a straight forward relationship between a lender and          are second mortgages that borrowers use to make a down                                                                                              which is the most significant innovation
    a borrower has become a complex series of transactions              payment on another mortgage, in effect resulting in 100%                                                                                            in financial markets in recent
    and relationships among numerous parties, especially in the         financing, and as such avoiding private mortgage insurance                                                                                          decades. Asset securitization is the
    U.S.                                                                (PMI). In addition, some mortgages have limited or no                                                                                               transformation of homogeneous cash
                                                                        documentation of borrower’s income and assets. The main                                                                                             flow producing illiquid assets including
    The way in which various institutions such as commercial            feature of these types of mortgages is that they allow for                                                                                          mortgages, consumer loans, leases,
    banks, investment banks, insurance companies, pension               enhanced loan affordability, but they also increase the                                                                                             trade receivables, remittances, non-
    funds, etc contribute to the efficient functioning of global        likelihood of loan default. Although these mortgages carry                                                                                          performing assets etc into securities
    financial markets in the raising of capital has also changed.       higher interest rates to compensate for greater credit risk,                                                                                        that are tradable in capital markets.
    Some of the changes led to negative consequences such as            in many instances they were actually underpriced.
    adverse selection and moral hazards, which have resulted            The structural changes in the financial architecture of        SEIMAD 3 : Housing Project and related infrastructure services in                     The creation of new financial instruments
    from unwitting market behaviors and predatory behavior              mortgage markets that contributed to the emergence of          three cities in Toamasina, Madagascar .                                               with more transparent combination of
    induced by excessive deregulation. This has helped create           subprime mortgages include;                                                                                                                          risk and return profiles allowed for
    new products at the primary level such as subprime                                                                                                                                                  the transfer of risk by various institutions, companies and
                                                                                                                                       Origins of the subprime mortgage crisis                          households to capital market investors. However, the credit
    mortgages.                                                          a. Relaxed underwriting standards that allowed borrowers
                                                                           who previously would not have qualified for loans to                                                                         quality and the cash flow of the resulting asset backed
                                                                                                                                       There are four main factors that contributed to the U.S
    Subprime mortgages and their origin                                    be approved,                                                                                                                 securities (ABS) are based solely on the credit quality of
                                                                                                                                       subprime mortgage crisis;
                                                                        b. Automated valuation that distorted house values and                                                                          the underlying primitive asset and any necessary internal
                                                                                                                                       a) Global excess liquidity,
    Subprime mortgages are loosely defined as mortgages                    reduced the ability of lenders to estimate default risk                                                                      and external credit enhancements and liquidity support.
                                                                                                                                       b) Low interest rates,
    extended to borrowers with blemished credit history or                 and,                                                                                                                         Globally, securitized assets now exceed US$15 trillion,
                                                                                                                                       c) Twin growth and stability, and
    elevated credit risk, such as relatively low credit scores,         c. risk-based pricing. The changes injected substantial                                                                         much of it associated with securitization of residential
                                                                                                                                       d) Housing asset price bubble. In particular, low interest
    higher debt-to-income ratios, a weak or minimal credit                 liquidity in the housing sector in particular, and                                                                           and commercial mortgages of all types including subprime
                                                                                                                                       rates translated to low yields on assets that led to exuberant
    history, and negative, little, or no equity in the property being      the mortgage finance industry. Subprime mortgage                                                                             mortgages. The key motivations for using this innovation
                                                                                                                                       chase for high yielding assets by investors. Low interest
    financed. Subprime mortgages include hybrid adjustable                 lending grew significantly from only $35 billion in                                                                          are cheaper and more reliable source of long term capital
                                                                                                                                       rates also translated to high mortgage affordability, which
    rate mortgages (ARMS) which provide fixed subsidized                   1994 to $625 billion in 2006, while home ownership                                                                           for housing finance, and other long term investments.
                                                                                                                                       fueled demand for housing, and in turn led to creating of
    interest rates for the first two or three years, known as              increased from 64% by 1995, to 70% by 2004. Most
                                                                                                                                       more exotic ABS such as CDO, which were mainly backed by
    “teaser rates”, whose interest rate re-price to market and             of these subprime mortgages were repackaged into                                                                             There are many benefits associated with financial innovation,
                                                                                                                                       subprime mortgages.
    become adjustable semiannually. In addition, there are                 mortgage backed securities (MBS), collateralized                                                                             among them the efficient transfer of asset risk to those best
    Option ARMs, interest only and piggyback mortgages                     mortgage obligations (CMOs) and collateralized debt                                                                          able to bear them, broader access to capital, severance of
                                                                                                                                       The increase in housing demand led to sharp increases in
    issued to subprime borrows. Option ARMs are negatively                 obligation (CDOs) and sold to capital market investors.                                                                      the rigid link between income and expenditure, and reduced
                                                                                                                                       the U.S house prices which turned out to be unsustainable.
    amortizing mortgages that allow borrowers to pay less than                                                                                                                                          cost of capital. Nevertheless, financial innovation has also
                                                                                                                                       According to the S&P Case-Shillier index for instance, U.S
                                                                                                             Continued on Pg. 5                                                                         led to a high degree of correlation between financial assets,
                                                                                                                                       house prices rose by 124% between 1997 and 2006. In the
                                                                                                                                                                                                        which are raising the spectacle of the market “contagion”
                                                                                                                                       U.K., house prices rose by 194%, in Spain by 180%, and
                                                                                                                                                                                                        effect. A contagion is a financial market phenomenon that
                                                                                                                                       in Ireland by an incredible 253%. In addition, the period
                                                                                                                                                                                                        results in high cross-country transmission of shocks or much
                                                                                                                                       between 1997 and 2006 was characterised by prosperity
                                                                                                                                                                                                        higher correlation in asset returns during financial crises
                                                                                                                                       and confidence around the world engendered by alignment
                                                                                                                                                                                                        than at other times, which more often afflict emerging
                                                                                                                                       of growth and stability. This led to increased willingness
                                                                                                                                                                                                        market countries.
                                                                                                                                       to borrow with the expectation that asset prices would
                                                                                                                                       continue to rise. But lending to riskier borrowers soon led
                                                                                                                                       to mortgage delinquency, defaults and foreclosure, which         Some lessons from the real world of
                                                                                                                                       escalated as house prices started to decline starting in         subprime mortgages and mortgage
                                                                                                      SCI Clare de Lune
                                                                                                      – Construction of a
                                                                                                                                       2006. The deterioration of the mortgage collateral and           backed securities linked to them
                                                                                                                                       rising default risk soon spread to national and global
                                                                                                      complex, Residence               financial markets. The bubble started bursting in the second     The contribution of the subprime mortgage market, financial
                                                                                                      Djamil, Dakar,                   half of 2006, and has since led to unprecedented collapse        innovation and securitization to the current mortgage and
                                                                                                      Senegal.                         of financial markets the world over.                             financial crisis aids us to draw some important lessons some
                                                                                                                                                                                                        of which include;
                                                                                                                                       The role of securitization in subprime
                                                                                                                                       mortgage crisis                                                  1. Primary markets are fundamental to origination of
                                                                                                                                                                                                           mortgages, and must therefore operate under the
                                                                                                                                       A major catalyst behind the rise in subprime mortgages              right kind of incentives to mitigate perverse behavior
                                                                                                                                       was the unprecedented growth in securitization markets,             to ensure high credit mortgages. Developing primary

                                                                                                                                                                                                                                               Continued on Pg. 8
4                                                                                                                                                                                                                                                                        5
    Managing Risks in Housing Finance Institutions: The case of Finance
    Building Society of Zambia
    By Mrs. Chaturvedi, Deputy CEO, Finance Building Society Zambia

          isk is inherent in all financial transactions that are expected to generate a return. It generally results from a lack           variances between foreign and local currency exchange         liquidity crunch may arise when a country’s monetary
          of certainty regarding future outcomes . For housing finance institutions, the need to measure and control risk is               rates. Specifically, the Society mitigates the effect         authorities impose controls on their currency through open
          essential, being that they deal with the core business of lending. Risk management is the process of identifying the             of depreciation of the local currency against foreign         market operations or through policies that inhibit certain
    level of risk that an entity wants to incur, measuring the level of risk that an entity currently has, taking actions that bring       currency by adopting the following strategies;                transactions e.g. externalization limits. To minimize this risk,
    the level of risk to the desired level, and monitoring new actual level of risk so that it continues to be aligned with the        i. Board approved foreign currencies                              FBS engages in forward purchases, debt swap agreements or
    desired risk.                                                                                                                            Foreign currency borrowing and advances are in foreign      on-lending a portion of the foreign currency loan in foreign
                                                                                                                                            currencies approved by the Board, which is the United        currency to ensure that the necessary foreign currency
    At the minimum, a risk management process should                 on a daily basis to discuss treasury and risk management               States Dollar (USD). In addition, foreign currency loan      required for servicing of the external debt obligation is
    therefore involve the following activities;                      matters, which are chaired by the Chief Executive Officer              advances are only approved for borrowers earning income      recovered by way of mortgage loan repayments.
                                                                     or his deputy. But at the front line of risk management                in the approved foreign currency.
    a.   setting policies and procedures,                            are rigorous loan appraisal techniques, which strictly ensure     ii. Lending in foreign currency                                   Credit risk
    b.   Defining risk tolerance,                                    that loans do not exceed 80% loan-to-cost ratio. FBS has                Although lending the whole amount of the loan in
    c.   Identifying the risks,                                      in addition identified three main possible sources of risks            foreign currency minimizes exchange rate risk, this          There are five main strategies that FBS employs to minimize
    d.   Measuring the risks and lastly,                             that include:                                                          nonetheless reduces profitability because higher margins     on the risk of delinquency or default which include.
    e.   Adjusting the level of risks.                               a) Financial risk,                                                     are achieved from lending in local currency. A balance
                                                                     b) Liquidity risk, and                                                 is struck between mitigating the risk and maintaining        a. Ensuring that the borrower is left with sufficient
    Risk management should be a continuous process and               c)Credit risk.                                                         profitability by lending a portion of the funds in foreign      disposable income to meet other needs after meeting
    may require altering any of these activities to reflect new                                                                             currency and the balance in local currency. Because             the loan obligation. Accordingly, FBS assesses the
    policies, preferences, and information .                         These are discussed in this section together with measures             majority of Zambians earn in local currency, the strategy       Installment to Income Ratio (IIR) and Fixed Obligation
                                                                     put in place for control and risk mitigation.                          also ensures broader coverage of the population, and            to Income Ratio (FOIR) at 35%, so that 65% is available
                                                                                                                                            that lending benefits the Zambian economy.                      to the borrower to meet other needs.
    Benefits of managing risk                                        Financial Risk                                                    iii. Lending in local currency (Kwacha)Several measures           b. Requiring physical inspection of the property, and a
                                                                                                                                            have been put in place in this regard. First, FBS               search at the Ministry of Lands and the Councils to
    For financial institutions, there are many potential benefits    This comprises risks pertaining to changes in interest rates,          maintains a foreign currency account with a minimum             ensure that the title is clean and clear.
    of managing risk efficiently which include;                      and fluctuations in exchange rates that cause variances                balance equal to its annual loan obligation. Secondly,       c. Disbursement of construction loan in installments
                                                                     between foreign and local currency during the fiscal year.             an Exchange Rate Stabilisation Fund (ERSF) has been             according to progress report to make sure that loan
    1. Reduced probability of a company falling into                                                                                        established, designed to ensure funds are set aside to          funds are only utilized for the purposes for which they
       bankruptcy, and therefore lowering the expected value         a) Interest rate risk                                                  meet the financial obligations falling due in relation to       were granted.
       of the bankruptcy costs and consequently, increasing              There are two components of interest rate risk that FBS            the foreign currency loan. The ERSF assumes the FBS          d. Requiring a compulsory Mortgage Protection Policy for
       the value of a company.                                          has identified and for which mitigation measures have               long-term cost of borrowing in local currency to be a           borrowers to ensure that in case of death and permanent
    2. It enhances a company’s debt capacity and lowers the             been set. The first pertains to the interest payable by             rate to be fixed by management, given the prevailing            disability, the loan is repaid by the insurance company.
       cost of debt, which gives the companies considerable             FBS on funds borrowed from foreign lenders, in which                money market conditions. The undisbursed funds in the        e. Mandatory insurance to cover fire and natural
       flexibility for future financing needs,                          case FBS ensures that rates payable are adjustable to a             ERSF earn interest at a rate of return not less than the        calamities
    3. A company can avoid getting into situations in which it          mutually acceptable international index such as LIBOR               prevailing interest rate on a 91 Day Treasury Bills. The
       has no incentive to undertake profitable projects                or within a ceiling rate. In addition, foreign currency             income is also used to mitigate the foreign exchange         Conclusions
    4. By practicing risk management, companies can stabilize           transactions are limited to long term borrowing and                 exposure risk.
       their cash flows, ensuring that adequate funds are               repayment is based on agreed terms. This means that                                                                              FBS is actively making its own efforts to ensure prudential
       available for investment                                         the payment liability is well known in advance, and that           Lastly, FBS has set a “Management Action Trigger”,            management of its resources, both foreign and domestic.
    5. Risk management practices help a firm operating in heavily       the Society’s risk management policy ensures how that             which is the decision point which defines managements          The Society is also attempting to broaden its product
       regulated industries like the financial services industry        liability is to be met.                                           tolerance towards market risk losses. This is quantified       portfolio so as to reduce the risks of its operations. In
       to avoid regulatory fines and costly restrictions.                                                                                 on the basis of when the ERSF goes into deficit as a           addition, it is also making efforts towards reducing the cost
                                                                         The other component is to do with the risk pertaining            result of the exchange loss. At this point, management         of funds and to broaden the resource base so as to obtain
                                                                        to interest payable on the mortgage advances by the               makes a decision as to whether to continue with the
    The approach to risk management by                                                                                                    loan or to opt for prepayment.
                                                                                                                                                                                                         the flexibility that is needed when pricing the various
    Finance Building Society                                            borrowers of FBS. In this regard, the Society maintains                                                                          loans. Lastly, the Society is building an IT infrastructure to
                                                                        adjustable rate mortgages (ARM) that are reviewed                                                                                support its present and future operations.
    In Zambia, the Central bank has adopted vigorous                    every six months, taking consideration of any major
                                                                        changes in the money market.                                   Liquidity Risk                                                    These efforts contribute towards minimizing the risk of
    approaches to monitor the management of risk by financial
    institutions. At Finance Building Society (FBS) which is one                                                                                                                                         lending and in effect, ensuring a sustainable lending
                                                                     b) Exchange rate risk                                             This refers to FBS’s potential inability to obtain the required   environment that is necessarily in alleviating the housing
    of Zambia’s housing finance institutions, risk management
                                                                        Generally, FBS mitigates the risk that arises from the         foreign currency to meet a debt servicing obligation. A           deficit in Zambia.
    is taken as a top management priority. Meetings are held

6                                                                                                                                                                                                                                                                           7
    Continued from Pg. 5                                                                                                               Continued from Pg. 8
       market institutions is a key priority for Africa.             The need for stability in mortgage and
    2. Ultimately, the cash flows from the financial products        financial markets
       traded on capital markets such as MBS and CDOs can
       only be as good as the cash flows from the underlying         Global financial markets that are resilient to shocks are
       assets. It requires that sound banking and other              fundamentally important to emerging economies of Africa
       associated business operations be put in place.               because these markets are becoming increasingly integrated
    3. Securitization should be kept simple, to avoid concealment    into global economies both in terms of trade and capital
       of the real risk of the new securities created, and as such   flows. Well functioning financial markets facilitate access
       hinder prudent investment.                                    to product and capital markets which are instrumental in
    4. The separation of the ultimate lender and the originator      stimulating economic growth, and in long term financing
       of the underlying asset which is characteristic of            of housing. When financial crisis such as those triggered
       securitization may lead to a more relaxed credit analysis     by the recent subprime mortgage market collapse occur,
       by the originator.                                            emerging markets including countries in Africa are usually
    5. The securitization process creates systematic dependence      the ones that bear the severest consequences. Nevertheless,
       through numerous counterparty links along the value           African economies must seek to tap into and attract the
       chain. Diffused responsibility of the various parties         enormous pool of capital available for instance from the
       involved along the value chain may lead to failure to         growing volume of hedge funds and sovereign wealth funds
       deliver due to warped incentives.                             that have experienced substantial growth in the recent
    6. As is evident from the current turbulence in the              past. To increase access to mortgage finance, mortgage
       financial markets, the prospect of contagion emanating        and capital markets in Africa must foster and encourage the
       from securitization can destabilize the global financial      development of new financial instruments based on sound
       system.                                                       principles of credit risk underwriting.
    7. Rating and rating agencies signal to the market the
       quality of financial assets, and as such influence the        Should Africa capital markets
       prices investors are willing to pay for financial assets.
       Incorrect information from rating agencies can lead to
                                                                     embrace securitization to develop new
       mis-pricing of assets.                                        instruments?
                                                                                                                                       Bahari Beach Housing Estate, Dar-es-salaam, Tanzania.
    8. Securitization can paradoxically lead to credit squeeze,
       for instance when spreads become compressed and               In spite of the rather grim account of the contribution of
       investors take on more risk in search for high yields, and    securitization to the current mortgage and financial crises,
                                                                                                                                       borrowers on one side, and the vast global capital markets    economies need to address the following key issues.
       when rising defaults eventually lead to credit squeeze.       there are many potential benefits of securitization that
                                                                                                                                       that were previously nonexistent. These relationships have
    9. Economic fundamentals form the basis for value                financial markets in Africa need to explore. Securitization has
                                                                                                                                       broadened access to credit for individuals and businesses     d. The legal system must uphold the sanctity of property
       formation for financial assets, hence the need to pay         for instance created beneficial relations between individual
                                                                                                                                       at reasonable terms. They have helped develop and deepen         rights, and eliminate the gaps and impediments that
       attention to the asset side of the balance sheet.                                                                               markets, added market liquidity and helped transfer risk to      hinder the development of mortgage and bond markets
                                                                                                         Continued on Pg. 9
                                                                                                                                       a much broader base, mitigated the agency costs of market     e. Developing confidence and integrity in the mortgage
                                                                                                                                       impediments and frictions on liquidity, and have helped          capital markets through strong standards for investor
                                                                                                                                       reduce market inefficiencies which has contributed to            protection, protection and enforcement of creditor
                                                                                                                                       lowering of the cost of capital.                                 rights, adoption of best practices, safety and soundness
                                                                                                                                                                                                        of the financial system.
                                                                                                                                       The benefits of more robust financial markets can help        f. Effective underwriting of credit risk thorough auditing
                                                                                                                                       emerging economies and Africa to address some of the             of assets and their income-earning potential, and most
                                                                                                                                       major issues that these countries are facing, including;         of all enhancing financial transparency and integrity
                                                                                                                                       the issue of how to raise and direct capital flow to          g. Facilitating development of bond markets by ensuring
                                                                                                                                       where it can boost growth and stability, how to create           prudent regulation that will permit establishment of
                                                                                                                                       the necessary environment to attract financing for               structured finance and investment vehicles, streamlining
                                                                                                                                       long-term and riskier projects, how best to design the           registration procedures, and efficient transfer of assets
                                                                                                                                       financial architecture to facilitate alternative financial       and property rights.
                                                                                                                Apartments by          intermediation for raising capital and, strategies for        h. Prudent but not excessive regulation and supervisory
                                                                                                                GCC Gombe,             directing some banking activities more towards capital           activities must stay abreast with new developments and
                                                                                                                Kinsasha               market-based solutions. These are key concerns for               financial innovations.
                                                                                                                                       African economies which lead to the question of whether       i. Raising governance and transparency standards to
                                                                                                                                       securitization and other structured instruments can help         create confidence that is critical to the stability of well-
                                                                                                                                       develop mortgage and local bond markets in Africa.               functioning mortgage and capital markets.
                                                                                                                                                                                                     j. Establishing appropriate yield curve across the maturity
                                                                                                                                       What Africa needs to do now                                      spectrum to provide for pricing benchmarks preferably
                                                                                                                                                                                                        through government securities or other relatively risk
                                                                                                                                       Undoubtedly, Africa needs to develop efficient and more          free issuers.
                                                                                                                                       complete mortgage and capital markets in order to make        k. Clear and transparent bankruptcy codes and liberalized
                                                                                                                                       mortgage financing more accessible to funding housing            and simplified tax regimes
                                                                                                                                       and other real estate. As a prerequisite though, African      l. Developing all the necessary institutions that are part of
                                                                                                                                                                                                                                           Continued on Pg. 10

8                                                                                                                                                                                                                                                                      9
     Continued from Pg. 9
                                                                                                                                         Experimental Reimbursable Seeding
        the financial infrastructure and architecture.
     m. Developing meaningful sovereign and company credit
                                                                       disclosure and high monitoring costs that prevent them
                                                                       from direct access to capital markets. Possible alternatives      Operations (ERSO): Providing Housing Finance
        rating.                                                        for diversifying sources of funds exist with the emergence
                                                                       of collateralized loan obligations (CLOs) and asset backed        to the Poor through Conventional Housing Finance
     The role of securitization and structured                         commercial paper (ABCP), which have enough flexibility in
     finance in capital markets development in                         terms of design and underlying asset type. They also possess
                                                                       appropriate disclosure requirements to mitigate existing
     emerging markets                                                  market challenges for financing SMEs. To mitigate against

                                                                       the small size of SMEs which could pose as a hurdle in
     Long term financing for housing and                               accessing such options, large numbers of small firms could
                                                                                                                                              RSO is an initiative aimed at financing of low-income housing especially in urban areas, through conventional housing
                                                                                                                                              finance institutions. The initiative was launched during the 22nd Session of the UN-HABITAT Governing Council
     infrastructure                                                    be pooled together in a structured deal which concomitantly
                                                                                                                                              (GC22) held between 30th March and 3rd April 2009 in Nairobi. In addition to encouraging pro-poor investments
                                                                       also serves to diversify the asset risk of the transaction.
                                                                                                                                         in housing, the initiative takes place against the backdrop of increasing urbanisation, with urban population estimated at
     Excessive reliance on deposit taking as a major source of
                                                                                                                                         approximately 3.3 billion, out of which about 1.0 billion live in slums and squatter settlements. During the launch, it was
     capital for banks means that banks are less than perfect          Integrating African capital markets into                          acknowledged that the way in which this problem is addressed will determine the future of cities in developing countries.
     source of financing for long-term assets such as housing          global capital markets                                            The concern is becoming even more serious in view of the current mortgage and financial crisis affecting majority of world
     and infrastructure. Securitization and structured finance
                                                                                                                                         economies, and that poses an additional threat to human settlements in developing countries.
     provides an opportunity for long term finance for housing         At the domestic level, the process of securitization integrates
     and infrastructure at more competitive and reasonable prices.     the various segments of markets by loosening or mitigating        During the GC22 Meeting, six ERSO agreements were signed by Mrs. Anna Tibaijuka, Executive Director of UN-HABITAT
     The resulting new tradable instruments are particularly           regulatory rigidities and other market imperfections to allow     with project partners from Argentina, Bangladesh, Kenya, Nepal, Tanzania and Uganda with the aim of providing funds for
     suited for pension funds and insurance companies with             efficient transfer of risk to those best able to bear them.       affordable housing and infrastructure. Initial funding is provided by Spain, the Kingdom of Bahrain and the Rockefeller
     long term liabilities that are denominated in local currency.     In turn, the cost of capital should move toward its lowest        Foundation
     These institutions can therefore match the duration of these      equilibrium. In this context, the integration of capital
     liabilities with long term local currency investments such as     markets becomes an important condition precedent for              The loans are provided to local financial institutions for on-lending to end users mainly the urban poor, for house building,
     MBS and CMOs.                                                     transparency, effective transmission of monetary policy to        improvements and infrastructure upgrading. Some of these include:
                                                                       real economy, and an efficient allocation of capital to most
     Inclusive and flexible capital markets                            profitable investment opportunities. These are necessary
                                                                       and desirable attributes that Africa mortgage and capital         Partnering with local financial institutions
     Financial assets arising from the innovation of securitization    markets are critically in need of if they are to become “the
     such as MBS and CMBS have broadened access to capital             next investment frontier”.                                        a. Kenya - ERSO seed capital loans are to be provided to           provide credit and technical assistance to low-income
     markets, and severed the rigid link between income and                                                                                 Housing Finance Kenya, which has predominated the               families to purchase and rehabilitate a dilapidated
     expenditures or consumption. They have the potential to                                                                                middle and high income market segments providing                building to create decent apartment units with basic
                                                                       Conclusions                                                          construction and mortgage loans. ERSO seed capital              amenities.
     help create more flexible and inclusive financial markets
     in emerging economies of Africa, which may render them                                                                                 will now enable HFC to move down market, to lend for         e. Dhaka - the Association of the Realization of Basic
                                                                       Financial innovation in general, and securitization in
     more “complete”, with regard to the potential and ability                                                                              construction of about 100 houses near Athi River and            Needs (ARBAN) is training and assisting the Cooperative
                                                                       particular has taken root in many of the developing
     to create value.                                                                                                                       for mortgages to members of housing cooperatives.               of Slum Dwellers to set up a savings programme which
                                                                       countries, and as discussed, it portends many benefits at the
                                                                                                                                         b. Tanzania – The loan is being used in supporting                 has enabled them to purchase land for construction
                                                                       household, company, national, regional and international
     Securitization of future flows as instruments                     level. As global capital markets become more integrated and
                                                                                                                                            Azania Bank to loan to Mwanza City Council for the              of housing. ERSO’s seed capital amounting to US$
                                                                                                                                            implementation of a comprehensive resettlement                  214,286 will be utilized to construct 40 flats for 240
     for accelerating economic development                             capital has become more mobile, businesses and investors
                                                                                                                                            plan using participatory urban planning processes.              slum dwellers.
                                                                       have a choice where to invest and where to raise capital.
                                                                                                                                            The programme will benefit over 600 low-income
     Securitization of future flows such as petroleum exports,         Africa must not remain behind in this global search for
                                                                                                                                            individuals. Also, the DFCU Bank is being helped to set      The ERSO initiative highlights the need to address housing
     oil and gas royalties, export receivables, etc, especially        financial opportunities. Rather, Africa should act with
                                                                                                                                            up a loan facility of approximately US$ 1.5 million for      problems especially for the poor from all levels. Formal
     for resource rich countries can be adopted to accelerate          hindsight of the causes of current crisis, to move with
                                                                                                                                            local developers and low-income households belonging         financial institutions need to rethink lending to the lower
     economic growth, and to generate more capital for medium          time and create dynamic and flexible systems in which a
                                                                                                                                            to the Kasoli Housing Association.                           income segments of the society, who according to the UN
     term financing of the housing sector. This is particularly        major disruption does not create substantial uncertainty. In
                                                                                                                                         c. Nepal - Habitat for Humanity International will be           Habitat are increasingly being proven to be creditworthy.
     appealing to emerging economies since it mitigates both           particular, there is need to give priority to the developemnt
                                                                                                                                            partnering with 11 local NGOs and microfinance               This is in line with more recent efforts by microfinance
     currency and political risk. As such, it facilitates government   of more inclusive and flexible debt markets characterised by
                                                                                                                                            institutions in Nepal to implement the “Save and Build”      institutions which are increasingly becoming involved in
     controlled entities and commercial entities to pierce the         carefully designed regulations, and efficient risk transfer and
                                                                                                                                            programme. This will involve building of decent housing      lending to the poor, and have proved that lending to the
     typically low sovereign rating ceiling to raise capital in a      sound risk management mechanisms with all the necessary
                                                                                                                                            for slum dwellers in 8 urban slums, and will benefit over    poor can in fact be profitable, and they exhibit lower default
     manner that is not possible under conventional means.             and sufficient financial shock absorbers.
                                                                                                                                            1,760 families comprising 6,700 individuals.                 incidences than previously assumed.
                                                                                                                                         d. Buenos Aires - Habitat for Humanity International will
     Access to capital markets for small and                           But at the global level, there is need to ensure clarity and
     medium enterprises (SMEs)                                         stability of the incentives offered to reward those who play
                                                                       the game right, and more importantly, to punish those who
     SMEs, which form the back-bone of majority of the                 play the game the wrong way.
     emerging markets economies have mainly been dependent
     on bank loans and private equity due mainly to weak public

10                                                                                                                                                                                                                                                                        11
      Did you
                                      •	 More than 75% of Africans cannot currently access mortgage, often because
                                         they do not have legal tenancy or ownership of a plot of land.
                                      •	 Sub-Saharan Africa has the second largest slum population in the world after

                                         South-central Asia, which has 262 million.
                                      •	 Africa is the only continent on earth that stretches from the northern           Book Review
                                         temperate to southern temperate zones.
                                      •	 Namibia is the only country in the world to specifically address conservation
                                         and protection of natural resources in its constitution.

                                                                                                                          Century of
 Namibia Country Profile
     Location of the                 Namibia is situated on Africa’s south-western coast and has Angola to the north,
                                                                                                                          the City
     Country                         Botswana and Zimbabwe to the east and South Africa to the south as neighbours.
                                     The Atlantic Ocean forms the western border of the country
                                                                                                                          Reviewed by Macharia Kihuro

     Area Land                       824,268 km2

     Capital                         Windhoek                                                                                 Century of the City- No Time to Lose” publication is          6.7B, with 9.2B as the projection for 2050. This definitely
                                                                                                                              a product of Rockefeller Foundation’s month-long              poses some challenges as well as enough opportunities.
     Population                      2.3 million (2008)                                                                       colloquium dubbed, Global Urban Summit in Bellagio,
                                                                                                                          Italy in July 2007 to identify and strategize on the challenges   Issues concerning water, sanitation, climate change and
     Languages                       English (Official), German (Official), Afrikaans(Official), Oshiwambo, Otjiherero,   faced by rapidly urbanizing 21st century global cities.           urban health have been succinctly articulated in chapters
                                     Damara, Nama, Tswana and Rukavango                                                                                                                     2, 3 and 4. As people from rural areas flock to the urban
                                                                                                                          An array of remarkable participants with immense interest         centres in masses, urban infrastructure cannot cope with
     Climate                         The hottest months fall between November and February, when average                  in urbanization drawn from diverse spheres of the global          the intense pressure unless adequately up graded.
                                     temperatures range from 20 to 36 degrees Celsius. In the colder months, May to       economy conglomerated, not only to identify the ills that
                                     August, minimum temperatures vary from 3 – 6 º C in the morning, often rising        bedevil our cities, but also explore decent and sustainable       Chapter 6 delves into the depths of the U.S Strategy on
                                     to 18 - 22 º C by midday.                                                            ways to address them.                                             urbanization for the next half century up to 2050. It starts
                                                                                                                                                                                            by acknowledging that although the U.S population has
     Currency                        Namibian Dollar (N$) which is on par and linked to the South African Rand, also
                                                                                                                          The various contributors in the book are unanimous- towns         surged to in excess of 300 million, there hasn’t been a
                                     legal tender in Namibia. Namibian dollar per USD : 9.1675 (April 2009)
                                                                                                                          and cities are in constant flux. They are hives of industry       coherent plan for where and how it will house, educate
                                                                                                                          and crucibles of social, cultural and political change.           or otherwise prepare for the 120million demographers are
     Head of state                   H.E. President Hifikepunye Pohamba
                                                                                                                                                                                            anticipating by 2050.
     Legislative                     Three-tier government consisting of the Executive, the Legislature and the           The long-standing distinction between central cities and
                                     Judiciary. Executive power is exercised by the government. Legislative power         suburbs has become less and less succinct. Outlying centres       The book has lived to the promise of this summit and
                                     s vested in both the government and the bicameral Parliament, the National           big enough to be called “edge cities” have emerged as well        the final chapters have been dedicated for the summit’s
                                     Assembly and the National Council. The judiciary is independent of the executive     as sprawling slums especially in the developing world.            highlights and the look towards the future. Chapter 9 tackles
                                     and the legislature. The capital, Windhoek, serves as the seat of the central        The publication specifically takes exceptional issue with the     the, “Building Evidence to sustain an urban future” while
                                     government.                                                                          fast-expanding slums in the growing cities of Asia, Africa        the last chapter ably addresses the policies and approaches
                                                                                                                          and Latin America forcing many people to live in deplorable       world cities may adopt to enhance urban opportunities.
     Economy                         Namibia’s economy consists primarily of mining and manufacturing which               and dehumanizing conditions.
                                     represent 8% of the GDP. The economy is closely tied to South Africa due to                                                                            In a nutshell, the book, “Century of the city” is an
                                     their shared history. Namibia is the fourth largest exporter of non-fuel minerals    This book provides a remarkable density of diversity. It          impassioned call for action. Vibrant with images and
                                     in Africa and the world’s fifth largest producer of uranium.                         provides a coherent, comprehensive guide that seeks to            littered with sidebars, Century of the City is magazine-
                                                                                                                          shape perspectives about cities’ planning and offers critical     readable but book-intelligent. The focus is on taking
     GDP (PPP )                      $11.23billion (2008 est.)                                                            new approaches to solving 21st Century urban challenges.          multidisciplinary approaches to the issues faced by cities,
                                                                                                                                                                                            from the underserved slums of Kibera in Kenya to the most
     GDP - per capita                $5,400 per person (2008 est.)                                                        Chapter 1 aptly covers the myriad of challenges and               bustling economic powerhouses of the new China. Readers
                                                                                                                          opportunities as far as city planning and urbanization are        will come away convinced that even the most inefficient
     Average annual growth rate      3.3% (2008)
                                                                                                                          concerned. It has indicated that the throughout the 20th          cities are incredibly important to the livelihood of both
                                                                                                                          century, all cities all over the world grew in population,        local citizens and global citizens, and that making them
     GDP – composition by sector     Agriculture: 10.4%, industry: 36.2%, services: 53.4% (2008 est.)
                                                                                                                          from 250m to 2.8 Billion. Overall global population rose          better is truly an international imperative.
                                                                                                                          from 2.2B inhabitants in 1950 to most recent estimates of
     Population below poverty line   34.9% (2005 est.)

     Life expectancy at Birth        51.24 years (2009 est.)

12                                                                                                                                                                                                                                                          13
     Staff News

                        New Staff F F
                        NEW STA
                                                                                                                                                                                      Project Profile

                                                                                                                                                                                 KPA Bandari Project,
        n line with the objectives of the 2007-2011 Business Plan, a new organisational structure was approved
        in 2008. As a result, the Shelter Afrique family has grown over the six months starting January 2009.
        Shelter Net wishes to extend a warm welcome to the following new staff and wish them an enjoyable stay          Mr. Marcus Gaitta                                        Nairobi Kenya
      at Shelter-Afrique.                                                                                                                                                             HELTER-AFRIQUE approved a loan of KShs.
                                                                                                                        Mr. Gaitta, a Kenyan national joined as Assistant
                                                                                                                                                                                      175,000,000 (US$ 2,500,000) in October 2007 to
                                                                                                                        Officer Human Resources in the Corporate Affairs
                                                                                                                                                                                      finance the construction of 135Nos. 4-bedroom
                                                                                                                        &Secretariat Department effective 9th February
                                                                                                                                                                                 maisonettes and related infrastructure services in the South
                                                                                                                        2009. He holds a Bachelor of Arts degree in Sociology/
                                                                    Mr. Samson Kimathi Murithi                                                                                   C neighbourhood of Nairobi. Kenya Ports Authority Pension
       Managing Director                                                                                                Business Studies from Kenyatta University, and a
                                                                                                                        Higher Diploma in H.R from the Institute of Human
                                                                                                                                                                                 Scheme and South Development Company Limited will
                                                                    Mr. Murithi, a Kenyan national joined as                                                                     make equity contributions amounting to KShs. 78,500,000
                                                                                                                        Resource Management Kenya. He was previously
       Mr. Alassane Ba                                              Assistant Officer Investment and Special
                                                                                                                        working for Oldonyo Laro Estates Ltd.
                                                                                                                                                                                 (US$ 1,121,429) and KShs. 79,875,000 (US$ 1,141,071)
                                                                    Products in the Operations Department effective                                                              respectively. Buyers’ deposits and the contractor’s
       The year 2008 ended with the departure of the                14th January 2009.He holds a Bachelors degree                                                                contribution will be used to cover the remaining financing
       former Managing Director Mr. Birama Sidibe.                  in Accounting and Finance from Moi University                                                                gap to the tune of Kshs. 425,971,916 (US$6,085,313) or
       Mr. Sidibe, a national of Mali, joined Shelter               and an MBA in Finance from the University of        Dr. Jacques Djofack                                      and KShs.57,500,000 (US$ 821,429) respectively.
       Afrique in July 2006 and served the organisation             Nairobi. He was previously working for Industrial
       diligently for two and a half years. His dynamic             Promotions Services (EA), part of the Aga Khan      Dr. Djofack , a national of Cameroon joined as           The project involves the development of affordable and
       and hardworking nature will be greatly missed.               Development Network (East & Central Africa) as      Team Leader Risk Management in the newly                 high quality maisonettes for outright sale to the public.
       Shelter Afrique takes this opportunity to wish               Group Financial Analyst.                            established Risk Management & Compliance                 The project will provide decent residential units to alleviate
       him every success in his future endeavours.                                                                      Department effective 27th February 2009. He              the acute housing shortage in Nairobi. It is also expected
                                                                                                                        holds a PhD in public works from Ecole Nationale         that the project will enhance public-private partnership
       The new Managing Director, Mr. Alassane Ba, a                                                                    des Ponts Chaussées, Paris, France, and an MBA           through competitive procurement processes and create
       national of Mauritania will join Shelter Afrique                                                                 in management and finance from John Molson               value through the development of vacant parcels of land.
       effective 1st July 2009. He holds a degree in                                                                    Business School, Concordia University, Canada. He
       Management from the Université of Paris I                  Mrs. Jocelyne Ninteretse                              was previously working as Senior Manager Finances        The project site is made up of three parcels of land adjacent
       Sorbonne, and a Master’s degree in Economics                                                                     & IT for Société Générale Corporate & Investment         to each other with a total area of 10 acres, in South C
       from the University of Dakar, Sénégal. Mr. Ba              Mrs. Ninteretse, a national of Burundi joined         Banking in Paris, France.                                estate, off Mombasa Road, about 8km from the Nairobi
       currently holds the position of Chief, Division            as Assistant Officer Loan Administration in the                                                                CBD.
       of Industries and Services at the African                  Financial Control & Management Department
       Development Bank. Shelter Net extends a warm               effective 15th January 2009. She holds a                                                                       Each unit will measure 170 Sqm and sit on a plot measuring
       welcome to Mr. Ba and wishes him an enjoyable              Bachelor in Business Administration degree from       Mr. Joseph Kihuro                                        about 204 Sq. M. with boundary wall and a gate. Ground
       stay in Shelter Afrique.                                   Africa Nazarene University, Nairobi, Kenya. She                                                                coverage is about 45% which allows for green areas and
                                                                  was previously working for American Friends           Mr. Macharia, a Kenyan national joined as Assistant      gardens at the front and sides of the building. Landscaping
                                                                  Service Committee as Administrative and Finance       Officer Risk Management in the newly established         comprising tree planting and green lawns will be provided.
                                                                  Officer.                                              Risk Management & Compliance Department
                                                                                                                        effective 4th March 2009. He holds a Degree        Project implementation commenced in October 2006 and is
                                                                                                                        In Accounting from the University of Nairobi and         progressing satisfactorily.
                                                                                                                        CPA (K). He was previously working with Fina Bank
          Mr. Isaac Nyamora                                                                                             as a Corporate Risk Analyst.

          Mr. Nyamora, a Kenyan National joined as
          Assistant Officer, Project Portfolio Management
                                                                 Mr. George Karanja Njiraine
          in the Business Development & Operations
                                                                 Mr. Karanja, a Kenyan national joined as               Mrs.Daniella Gateretse
          Department effective 12th January 2009. He
                                                                 Assistant Officer Treasury in the Financial
          holds a BSc in Mechanical & Manufacturing
                                                                 Control & Management Department effective              Mrs. Gateretse, a national of Burundi joined
          Engineering from the University of Nairobi and
                                                                 2nd February 2009. He holds a BSc in                   as Senior Administrative Assistant in Business
          was previously working with H Young & Co as
                                                                 International Business Administration (IBA)            Development & Operations Department effective
          Projects Engineer.
                                                                 with Accounting major from the United States           27th April 2009.She holds a HND in Marketing
                                                                 International University (USIU), Nairobi and           Economics/Communication from       Niels Brock
                                                                 CPA(K). He was previously working for Family           College, Denmark. She was previously working
                                                                 Bank Ltd.                                              for AFRACA as a Relationship Officer / Assistant
                                                                                                                        Program Coordinator.

                                                                                                                                                                                 Bandari Estate by KPA Pension Scheme, South
                                                                                                                                                                                 C, Nairobi, Kenya.

14                                                                                                                                                                                                                                                15
            When large numbers of people live in despicable housing
            conditions while a handful of people live in comfort and luxury,
            this amounts to some kind of violence.” Mahatma Gandhi

            Every child in Africa is born with a financial burden which a
            lifetime’s work cannot repay – the debt is a new form of slavery, as
            vicious as the slave trade.” All Africa Conference of Churches

            Housing is a process and if you help people make the first step
            they will be on their way to acquire a house.” Aruna Paul speaking
            at the GC22 Meeting on behalf of Habitat for Humanity

          PAR AVION

     If undelivered please return to:
     P.O. Box 41479,
     Nairbi, Kenya.


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