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Oliver Kazunga Senior Business Reporter
THE banking sector has channelled $358 million towards the construction of houses and servicing of 6,460 residential stands across the country in the first nine months of this year.Zimbabwe has a housing backlog of more than 1,25 million units as demand for accommodation in urban and resettlement areas continues to increase.
According to a latest report by the Reserve Bank of Zimbabwe (RBZ), four financial institutions namely the Central African Building Society (CABS), ZB, CBZ and FBC, were involved in housing development in line with the objectives of the Zimbabwe Agenda for Sustainable Socio-economic Transformation (Zim-Asset), the country’s development agenda.
“The sector has complemented such efforts under Zim-Asset by funding mortgages to the tune of $357,62 million as at 30 September 2014,” the central bank said.
The four institutions, RBZ said, had mobilised close to $36 million in offshore funding for housing projects while Homelink, a subsidiary of the central bank, was involved in floating a $20 million bond aimed at supporting housing development.
Recently, the government put in place tax incentives for building societies to encourage housing development.
The monetary authorities said they were encouraging banks to set up mortgage divisions to boost property development lending.
“CABS, a subsidiary of Old Mutual, remains the biggest player in the housing sector having financed the construction of 1,582 houses out of the total of 1,690 and servicing of 3,893 stands in Harare,” it said.
ZB Building Society has funded the construction of 10 houses and servicing of 250 stands in Harare and Beitbridge while FBC constructed 98 houses in Harare’s Glaudina, Waterfalls and Greendale.
On the other hand, CBZ has managed to fund the servicing of 2,317 stands in Mutare, Gweru, Kwekwe and Harare.
In September this year, Local Government and National Housing Minister Dr Ignatius Chombo launched a new Housing Delivery Strategy calling upon various stakeholders to invest in national housing as the present backlog was due to low investment in that area.
Under Zim-Asset, the country targets to build 250,000 housing units between 2013 and 2018. Apart from the set target, 1,250 public houses and buildings would be rehabilitated, 2,500 factory shells, flea and vendor market stands would be created while 310 clinics and 300 schools would be built.
A new Parliament Complex would also be constructed in Mt Hampden, Harare.
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