Online Reporter
Yeukai Karengezeka-Chisepo
Herald Correspondent
GOVERNMENT has intensified efforts to transform the housing sector into a major driver of economic growth with Housing and Social Amenities Minister Professor Paul Mavima calling for stronger partnerships with the private sector to accelerate delivery of affordable and decent homes across the country.
Speaking during the inaugural Housing and Social Amenities Stakeholders’ Dinner held in Harare on Wednesday evening, Prof Mavima said the country was well-positioned to exceed the National Development Strategy 2 (NDS2) target of one million housing units by 2030 through
public-private partnerships (PPPs) and commercial joint ventures.
He said the Second Republic remained committed to ensuring every citizen had access to decent shelter in line with the Constitution, which recognises housing as a basic human right.
“Accelerated delivery of affordable and decent housing units to meet the growing demand across urban and rural areas, upgrading informal settlements into planned, serviced and dignified communities and expansion of social amenities such as schools, clinics, roads, water and sanitation infrastructure remain our priority,” Prof Mavima said.
“I want to make it very clear to you, as our stakeholders, that if we wait for the delivery of housing units by the Government alone, we will not go far.
“But if we work with the strategy of commercial joint ventures and public-private partnerships, we will definitely surpass the one million target that we have given ourselves until 2030.”
He said the Government had confidence in local developers and contractors whose capacity to deliver had already been demonstrated.
“I am very, very confident. I have seen the capacities that a lot of our contractors and developers have,” he said.
“What remains is for us as Government to really facilitate and make sure that we create the environment that will make you deliver seamlessly.”
The minister dismissed claims of a funding gap in the housing sector saying Zimbabwe had vast untapped resources in pension funds, local financial institutions and diaspora investment.
“I hear people talking of the funding gap. I do not think it is there. I really do not think it is there. I think it only exists in the traditional way that we have viewed the housing market,” he said.
Prof Mavima said land for housing development had become one of the fastest empowerment tools for entrepreneurs, while diaspora investors were increasingly showing interest in Zimbabwe’s real estate market.
“When we put together these elements, and when we realise that there are savings that exist in our pension funds and in our other financial institutions, we as Government have to embrace a much more progressive outlook,” he said.
He urged land holders to unlock idle land for development and challenged the private sector to take advantage of available opportunities.
The minister said Zimbabwe could benchmark itself against leading African housing markets such as Kenya and Rwanda.
“I was in Kenya recently. The rate at which they are providing housing in general is just breathtaking,” he said.
“About a year ago, I was in Rwanda, and again I was amazed at the rate at which they are providing modern housing as well as social amenities. There is no reason whatsoever for this country to lag behind those nations.”
Prof Mavima said the Government had increased its shareholding in Shelter Afrique Development Bank from 1,25 percent to 5 percent a move expected to unlock more resources for local developers, banks and financial institutions.
“This implies that even more resources will come and will be ready to be accessed by local private land developers, banks and financial institutions,” he said.
He also revealed plans for a model housing development project in partnership with Shelter Afrique that would be showcased to the SADC region.
On infrastructure, Prof Mavima said housing projects must go hand in hand with roads, sewer systems, electricity, water reticulation and service lanes to ensure sustainable settlements.
He added that affordable housing finance remained a challenge, but Government was engaging financial institutions to develop new mortgage products for low and middle-income earners, housing cooperatives and microfinance schemes.
“We need to move away from the current mortgage situation where you borrow to build a house but are supposed to pay back within six or seven years, with very high interest rates, making it almost impossible for the majority of people in Zimbabwe,” he said.
Prof Mavima said the ministry’s vision was to develop a critical mass of local contractors and developers within the next five years who would not only serve Zimbabwe, but also compete regionally.
“If we do that, we will create serious amounts of wealth for contractors and developers, but also serious amounts of wealth for the nation,” he said.
He said Zimbabwean firms should ultimately expand into regional and international markets, citing Chinese and South Korean companies that had become global infrastructure giants.
“As we deliver on the mandate of this ministry, we should make sure that we are developing a private sector that will go into Zambia, Mozambique and Dubai to undertake jobs there and bring value back to the nation,” said Prof Mavima.
