Pension funds should invest in housing — Minister Moyo

Robin Muchetu, Senior Reporter

PENSION funds across the country have been urged to channel investments into housing projects to protect their value and provide decent, affordable living spaces for their beneficiaries.

The call was made by the Minister of Public Service, Labour and Social Welfare, July Moyo, during a recent groundbreaking ceremony for the Accelerated Presidential Housing Project for Public Servants in Rangemore, Bulawayo, where 4 000 housing units are slated for construction with over 300 already completed.

“These pension schemes should take a proactive approach by investing in housing developments that cater to their pensioners,” Minister Moyo said.

He pointed out that the Local Authority Pension Fund in Bulawayo, which represents a partnership between workers and employers, as well as other pension funds like the Mining Pension Fund, should focus on building homes for the community.

“The impressive skyscrapers you see throughout Bulawayo are a testament to the construction efforts financed by pension schemes. I encourage others to follow this example,” said Minister Moyo.

The Minister stressed the importance of strong management for pension schemes to ensure they effectively support workers upon retirement.

He cautioned against mismanagement, citing instances since 2009 where poorly managed funds have collapsed.

“While the National Railways of Zimbabwe may not be operating at full capacity, its pension fund remains robust due to strategic investments in housing, commercial real estate, and hotels. They can showcase their assets as a source of income. If funds are not properly managed, stakeholders may lose track of their investments.”

Minister Moyo further urged pension funds to convert savings into tangible assets, thereby stimulating economic growth.

The housing initiative spearheaded by Maharba Properties and Hawkflight Construction was made possible through collaborative efforts with the National Social Security Authority (NSSA) and NBS Bank.

“This initiative draws inspiration from President Mnangagwa and aligns with the Zimbabwean Government’s commitment to provide meaningful benefits to civil servants. Importantly, it will also extend to members of the security sector,” he noted, emphasizing the initiative’s objective of delivering affordable housing solutions for civil servants and the larger population.

On financing, he acknowledged the potential of mortgage systems, which NBS facilitates for beneficiaries.

“Many people are unable to save enough to purchase houses outright, making mortgages a viable option that benefits the economy and reduces risk,” he said.

He also highlighted the necessity for proper property evaluations by local councils to ensure accurate tax assessments.

The minister expressed gratitude to NSSA for its pivotal role in funding the project, describing their financial contribution as foundational to the initiative’s progress.

“We appreciate your support and encourage you to continue your vital role in making this project a success,” he said.

He outlined plans for effective service delivery at the housing project, suggesting a collaboration between Umguza Rural District Council and Bulawayo City Council, and emphasised the need for a memorandum of understanding to facilitate coordination.

Minister Moyo said both Bulawayo and Matabeleland North Ministers of State would oversee the projects on behalf of the President.

To replicate the housing scheme throughout the country, he called for the Ministry of National Housing and Social Amenities to take charge, working collectively to fulfil the aspirations of citizens.

“It is essential that the ruling party, Zanu-PF, nurtures a vision that the Government must realistically implement, seeking both human and financial resources to transform the dream of providing accommodation for civil servants into reality,” he added, highlighting that the initiative aims to be accessible to public servants of all ranks.

Cde Jabulani Sibanda, Zanu-PF Bulawayo Province Chairman, praised the efforts of contractors, Mr Mngane Ncube (Hawkflight) and Mr Milton Makore (Maharba) for their commitment to providing quality housing to the community.

“We appreciate the efforts of Hawkflight Construction and Maharba Properties for stepping up to contribute to national initiatives, making significant sacrifices for the benefit of our President and the beneficiaries,” he said.

Cde Sibanda urged public servants who benefit from the housing project to work diligently to ensure their pensions afford them subsequent homeownership opportunities. The housing project is set to be inaugurated by the President upon its completion.