Cross-border traders’ housing scheme launched

between the Cross-Border Traders’ Association of Zimbabwe (CBTAZ) and BancABC in the city over the weekend.
The remarks by Governor Mathema came as Bulawayo Mayor Thaba Moyo indicated that the city could release around 10 000 housing stands for the CBTAZ housing project on condition that they raise adequate funding for servicing.
According to Mayor Moyo, Bulawayo has a housing waiting list of around 100 000, but the homes deficit is estimated to be much higher given the figures outside the official list.
“If we can build 10 000 houses we would have assisted in the development of the local (Bulawayo) economy.
“The construction sector is one of the key sectors that Bulawayo, and the country in general, can use to drive the economy.
“The construction projects and downstream benefits can have wider impact in terms of job growth,” said Governor Mathema.
To this extent, the local housing sector offers a number of investment opportunities — on the basis of adequate financing — notably servicing of land (both in terms of development of stands and provision of onsite infrastructure) and offsite infrastructure.
However, in the context of a largely illiquid market, both rural and urban councils in the country are increasingly facing the challenge of generating resources for the development of new houses, hence the need for greater private sector involvement.
The CBTAZ/BancABC partnership will see members of the association opening individual property accounts with the bank to raise capital for housing projects.
BancABC indicated that the accounts would accrue a 7 percent interest annually.
The bank’s move to engage this previously “unbanked” niche, which contributes significantly to the economy, can help drive up banking sector deposits that have generally remained low since dollarisation.
CBTAZ president Mr Killer Zihvu said they would spread the initiative to other parts of the country to ensure that all its members have access to homes.
Viability of the cross-border trade business has been enhanced further by the increased support of the private sector with First Funeral Assurance (Pvt) Ltd joining in to provide CBTAZ members with life insurance at discounted rates.
Meanwhile, Governor Mathema criticised unscrupulous developers who were taking advantage of the high demand for housing to fleece people.
“In recent times we have noticed that some developers have tended to reduce the number of new housing projects so that they can inflate their prices due to the high demand, and this should stop,” he said.
It has also been revealed that around 70 percent of houses in Bulawayo do not have title deeds, with the city’s authorities indicating that any new houses to be developed going forward will automatically get title deeds.
The lack of title deeds for most Bulawayo residents has also meant that they are constrained from accessing loans from local financial institutions.
“The requirements for accessing loans by our banks are an inheritance from the colonial system and they hinder our citizens from being economically empowered.
“They are too stringent and should no longer apply,” said Governor Mathema.