Shelter Afrique Ordered to Pay Over US$1.1 Million in Court Settlement

The Commercial Division of the Accra High Court has ordered pan-African housing finance institution Shelter Afrique to pay over US$1.1 million to Ghanaian property developer Blue Rose Limited after finding that the lender failed to release funds for a housing project despite the developer meeting all contractual conditions. Justice Samuel Djanie Kotey delivered the ruling, which followed a dispute over a December 2016 loan agreement intended to finance the construction of 170 homes, including two-, three- and four-bedroom units, along with essential infrastructure, for public sale.

Under the agreement, Shelter Afrique was to contribute US$5.2 million, about 64 percent of the total project cost, while Blue Rose would provide US$2.9 million, representing roughly 36 per cent. A revised agreement in October 2017 slightly adjusted these figures to 63.17 percent and 36.83 percent, respectively. Blue Rose fully met its equity obligations and completed all pre-disbursement requirements, which Shelter Afrique itself confirmed. With funding expected, construction progressed according to plan.

However, despite these assurances, Shelter Afrique withheld its share of the financing, causing a 17-month delay in a 36-month project schedule. The lack of funding disrupted sales, marketing, and delivery timelines, ultimately forcing Blue Rose to repudiate the contract in July 2018 and request a formal discharge. The court found that Shelter Afrique had “no lawful justification” for failing to release the funds and that this breach caused significant financial harm to the developer.

Blue Rose had claimed US$1,144,669.16 in special damages, of which the court awarded a substantial portion for proven losses, alongside GH¢500,000 in general damages for project setbacks and GH¢100,000 in legal costs. The case serves as a reminder of the critical role that timely, reliable housing finance plays in addressing Africa’s housing deficit and the damage that can result when agreements are not honoured.