JUST IN: US25m credit line secured for 5000 low cost houses

Rumbidzayi Zinyuke – Senior Reporter
Zimbabwe’s private sector has secured US$25 million credit lines from The Company for Habitat and Housing in Africa (Shelter Afrique) to finance the construction of nearly 5000 low cost housing units that will help to reduce the national housing backlog.

The pan-African financial institution approved a drawdown of US$11 million for BancABC with a repayment tenure of seven years.

The National Building Society (NBS) will receive US$4 million while the Urban Development Corporation (UDCorp) received US$10 million.

Speaking at a joint press briefing with the Ministry of National Housing and Social Ammenities, Finance and Economic development Minister Professor Mthuli Ncube said: “What this entails is that Government is playing its pivotal role of facilitating housing delivery through private sector participation. All local private enterprises that have or intend to implement housing projects are eligible to access lines of credit from Shelter Afrique, subject to meeting the terms and conditions set.”

Zimbabwe is a member of the Shelter Afrique and cleared its capital arrears in 2019 to pave way for local institutions to access lines of credit in housing finance.