The Commercial Bank of Zimbabwe is spending US$8,3 million in construction of low-cost houses in Zimbabwe. According to governemnt officials, discussion is ongoing between the CBZ authorities and the ministry of housing to acquire more land so that the construction of the houses kicks off.
The CBZ bank CEO Never Nyemudzo said, in spite of the effects of the liquidity crisis, the uptake of housing in Gweru’s Senga high-density suburb and Mutare’s Chikanga high-density suburb was relatively high.
Nyemudzo said that his bank is partnering with the government to attain more land, adding that the cost of land is a major determinant of what the constructed houses would cost.
According to the chief executive the bank is set to obtain two hundred stands to construct affordable houses in Kwekwe.
He said the bank has received a US$46 million loan facility at a 7 percent interest annually from PTA Bank, and will direct US$10 million towards small and medium enterprises.
The moves comes against the backdrop of increased rural-to-urban migration in Zimbabwe causing shortage of houses in urban areas in the country.
Zimbabwe has had multiple plans to construct public houses around the country, including a national housing policy launched in 1999, but it has lacked the resources to match the rising demand.
Perhaps it is for this reason that the government is partnering with private sector to construct low-cost houses in Zimbabwe in a bid to reduce the deficit that is already existing.