Zimbabwe bank sets aside US$30m for housing development

Kenya receives US $208m for its affordable housing project

Zimbabwe bank-Infrastructure Development Bank (IDBZ) has set aside $30m to cater for housing development across the country.

Last year, their request to issue over $100m in bonds in the next five years for the purpose of undertaking infrastructure development projects was approved by Treasury. Some of the area earmarked for the project include Harare where 370 stands will be serviced and 1000 stands in Harare, Karoba and Hwange in Empumalanga Suburb respectively.

The IDBZ projects director Mr. Desmond Matete said that the institution would focus more on the servicing of stands before the prospective home seekers start building their houses. He added that their main aim is to eliminate the bottlenecks that hinder the provision of houses in the country. Consequently, they are concentrating more on site servicing so as to ensure quality roads as well as sewer reticulation.

Also read:IDBZ to construct housing facilities for 11 state universities in Zimbabwe

Mr. Matete further added that they would ensure that the stands are fully serviced before home seekers approach their co-operating partners who are building societies in order to look for money to build their superstructures. He said that this year a total of $30m has been set aside for the projects that will be covered.

According to him, the acceleration of site servicing that is no longer affordable to local authorities as well as private developers; the financial institution will have contributed in terms of hastening housing delivery in the country in line with Zim Asset.

Zimbabwe has a housing deficit of about 1.25m units. The bank recently started courting foreign shareholders to attain a $250m equity capital by the end of this year as it seeks to strengthen its capital base which id currently as $50m.

Moreover, in ita financial results for the period 2016-2017, IDBZ’s total assets grew by 22% to $159.94m from last year’s $130.69 due to a capital injection amounting to $23m from shareholders.

The Zimbabwe Asset Management Company also took over non-performing loans to the tune of $1.8m.

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