CBZ in US$75m housing scheme

Livingstone Marufu —
ZIMBABWE’S biggest commercial bank in terms of the balance sheet, CBZ, is set to flaunt its financial muscle next year by investing US$75 million in low income housing schemes in three cities. The housing projects are earmarked for Harare, Bulawayo and Marondera.

The announcement of the latest projects, comes at a time when CBZ’s US$12 million low cost housing project in Victoria Falls, which started three months ago, is set to have the first stands going onto the market at the end of February next year.

CBZ Holdings marketing and corporate affairs executive Mrs Laura Gwatiringa told The Sunday Mail Business that the bank expects the housing projects to be fully subscribed as building loans would be provided.

“CBZ continues to participate in housing delivery through property development and as such, in 2017, we are embarking on other massive projects in Bulawayo, Marondera and Harare at a cost not less than US$75million.

“After recording success on a number of projects, including the ongoing Victoria Falls housing project, CBZ shall continue with its strategic thrust to deliver low cost housing in all cities and towns of Zimbabwe and to date, has registered its presence in Harare, Mutare, Chegutu, Kwekwe, Gweru and Victoria Falls,” said Mrs Gwatiringa.

Unavailability of liquidity in the market, and in some cases, the high cost of loans and mortgages, have prevented the uptake of the several “low-income” houses by the majority of citizens, despite a national housing backlog estimated at 1,25 million.

The Victoria Falls project is now 50 percent complete and it is anticipated that 1309 stands will have takers by February 2017.

CBZ has reduced the unit price for the Victoria Falls housing stands from US$45 per square metre to US$34,50 per square metre, excluding value added tax (VAT), to cushion potential home-seekers who are struggling to make ends-meet.

The bank now wants the resort town’s municipality to furnish it with an updated list of beneficiaries, who should be first time home-seekers, so that selling of stands commences at the end of February next year.

Currently, caterpillars and bulldozers are clearing the land between Victoria Falls/Bulawayo Road and Mkhosana suburb, popularly known as the Buffer Zone.

Added Mrs Gwatiringa: “CBZ embarked on this low cost housing scheme comprising of three projects namely Chinotimba, Mkhosana and Mkhosana Buffer with a total of 1309 stands in October 2016.

“The expected date of completion is envisaged to be end of February 2017. We expect to deliver houses of high quality standards in all areas we build in a bid to outmanoeuvre our competitors in everything we do.

“CBZ shall support the beneficiaries of this project by providing building finance to qualifying beneficiaries of the project. This will give the beneficiaries latitude to build houses of their choice and size at their own pace depending on their level of qualification.”

There are 1114 high density stands whose sizes range from 190 square metres to 400m² and 193 medium density stands ranging from 450m² to 1000 m².

CBZ is largely targeting vendors as they have no reliable source of income. The housing projects will complement Government efforts to provide housing units to low income earners.

Under the country’s economic blueprint, ZimAsset, Government plans to erect 313 000 housing units by 2018.