The Zambia National Building Society (ZNBS) has said the housing units being built by the institution in conjunction with some district councils will not become ‘white elephants’ as prospective owners will sign off-take agreements for mortgage financing.
Recently, Zambia National Building Society proposed to the Ministry of Local Government and Housing on prospects of financing construction of houses in newly-created districts in an effort to address the shortage of houses in the country which is having a housing deficit of about two million.
In a recent interview , Zambia National Building Society public relations officer Mubanga Chanda said the society has come up with a financing structure that will cut on the cost of housing construction in the country.
“Councils are providing land and ZNBS is providing finance but we have also partnered with utility companies [water and sewerage, electricity] to service the areas before construction starts. Thereafter, we will engage developers, who will come up with various designs for people to choose from,” he said.
He said people who intend to buy houses will be required to register with Zambia National Building Society to access the mortgage facility.
“It is this mortgage that will finance construction of the houses so ZNBS will not be looking for buyers but prospective owners will make contributions through the mortgage to enable the developer build the houses,” he said.
Mr Chanda added that Zambia National Building Society plans to put up resilient cities in the areas to be acquired from the councils.
So far, Nyimba District Council has set aside 27.5 hectares to Zambia National Building Society, where 300 houses will be constructed over a three-year period.
Chikankata District Council has also allocated 70 hectares while Chilanga has offered 20 hectares with Kabwe and Luanshya councils showing an interest to engage ZNBS on the construction of housing units.