US $25m credit line for construction of Zimbabwe low-cost housing

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Shelter Afrique has extended a US $25m line of credit to Zimbabwe low-cost housing through three Zimbabwean institutions to build 5000 low-cost houses in line with the National Development Strategy 1. Of the total lines of credit, BancABC gets US $11m, National Building Society (NBS) US $4m and the Urban Development Corporation (UDcorp) US $10m.

Re-engagement agenda

According to Finance and Economic Development Minister Mthuli Ncube, the opening of credit lines to the private sector is a direct result of the government’s re-engagement agenda and the desire to reconnect with the global financial community.

“What this entails is that the government is playing its pivotal role of facilitating housing delivery through private sector participation. All local private enterprises that have or intend to build low-cost houses are eligible to access lines of credit from Shelter Afrique, subject to meeting the terms and conditions set,” said the minister at a joint press briefing with National Housing and Social Amenities Minister Daniel Garwe.

“Zimbabwe low-cost housing is a key pillar of the NDS1 and investment in housing is how we create a middle class because the way you measure the value of a household is through its housing assets. Clearly housing ownership is important to moving Zimbabwe to upper middle economy status by 2030,” added the minister.

Also Read: Zimbabwe approves new building technology for housing project

Shelter Afrique is a partnership of 44 African governments, the African Development Bank and the Africa Reinsurance Corporation. It was set up to mobilise funds to build homes.

Besides the three institutions that had received financing, there were other applications from Zimbabwe that were at an advanced stage of approval, which could drive the total credit from Shelter Afrique to US $35m.

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