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THE National Building Society (NBS) says it will not be reliant upon the National Social Security Authority (NSSA) for funding of its projects going forward.
NBS is a subsidiary of NSSA.
Managing director Mr Ken Chitando said the financial institution will by March this year have come up with a repository of at least 50 housing development projects in line with its target of setting up 100 000 units over the next five years
“We are looking to develop 100 000 units in the next five years, and by end of March we should have a repository of at least 50 development projects towards that broader goal,” he said.
He added that NBS is looking at number of options for securing funding for its projects.
“The shareholder is quite important, they have put in an initial investment and they will continue to support us….but it’s not sufficient to be reliant on the shareholder.
“So we are looking at the capital markets to be able to play that role. We are also looking at lines of credit and there are development finance institutions who have a particular interest in housing,” he said.
“We will also mobilise our customer deposits for deployment as mortgage loans, as well as consider asset securitisation.”
The NBS was established last year with mandate to provide low income earners from across the country with affordable housing through mortgage loans.
It currently has two branches – in Harare and Bulawayo – and Mr Chitando has said plans are afoot to open four more branches across the country this year.
According to the MD, the building society is targeting to oversee the completion of 10 000 low-cost housing units by the end of this year; rising to at least 15 000 units in 2018 and at least 20 000 units in 2019.
He added that NBS will leverage on public-private partnerships (PPPs) in its goal to achieve 100 000 units over the next five years, with private developers set to account for 80 percent of its housing pipeline. — BH24.
Online Reporter