THE soon to be launched Infrastructure Development Bank has to provide a favourable interest rate regime that stimulates development of infrastructure, property players have said.
Real Estate Institute of Zimbabwe (REIZ) president, Abraham Sadomba, said it is REIZ’s hope that the bank will lend money at affordable rates to those who want to develop infrastructure for the construction of houses.
“We hope money would be made available for the construction of roads which makes it easier for those who want to develop high to medium-density houses,” he said.
Sadomba said the availability of serviced land reduces the cost of construction thereby increasing the number of houses available.
Of late, property developers have voiced concern on the unavailability of infrastructure such as roads.
Sadomba said the bank has to make money available for the provision of services such as sewerage and the upgrade of the capacity of sewerage works for the city.
“If you want to construct a high density suburb, the Harare City Council is saying it does not have capacity for sewerage treatment works.
At a stakeholders’ workshop on the bank’s capacity in relation to a housing development process held last month, housing groups said interest rates to be charged by the bank have to cater for low-income earners who bear the brunt of acute accommodation shortages.