HomeBusiness DigestZB injects US$5m into housing projects

ZB injects US$5m into housing projects

ZB financial holdings Ltd has so far spent US$5 million in developing housing units in Beitbridge, Hatfield and Ruwa, an official has said.

Fidelity Mhlanga

The group’s financial director Fanuel Kapanje told businessdigest on the sidelines of the company’s analysts and media briefing on Wednesday that 700 housing stands were sold to individuals with the construction of more houses set to commence in Ruwa and Beitbridge soon.

“For Hatfield and Ruwa we spend about US$2 million each and US$1million for Beitbridge. We have sold 700 stands in Ruwa and for the 100 units left we want to construct houses and the construction is starting in the second half. We want to give people mortgage for 20 years. For Beitbridge we are targeting 150 housing units but there were some offside services that need to be done by the council which have been completed and now that council has completed we now moving in to set up some demo housing units,” he said.

Kupanje said most of the major work in Hatfield housing units was finished by end of April this year, but residual activities like electricity connection were recently finalised.

The company is still waiting for a certificate of completion.

The bank is liaising with local councils for land to raise related funding meant to focus on low cost houses.

ZB CEO Ronald Mutandagayi said the company was finalising the setting up of a reinsurance office in Mozambique.

The Southern African authorities are currently engaging the Insurance Pension Commission to expedite the process.
While the group is on course to raise the RBZ tier 1 capital requirement of US$100 million, the current capital base is pegged at US$34 million.

“We are still looking for being a Tier 1 bank if we get a partner to assist us to raise capital to US$100 million,” Mutandagayi said.

ZB Bank Ltd’s capitalisation was achieved during the period with an injection of US$20 million through treasury bills with a zero coupon rate for 10 years.

The group posted a profit of US$4,1 million in the first half of 2015 achieved through relentless implementation of cost management. Its profit contributions were enhanced by the banking unit which earned US$2,4 million whereas life assurance made US$0,71 million and reassurance business generating US$0,72 million.

The company said general liquidity outturn during the first-half of the year has been poor, with market deposits reported to have reduced by close to 10% up to May 2015 from the closing position at December 31 2014.

This is underscored by the level of fiscal collections which were reported to be 6% below budget as at the end of the first half of 2015; without anything to suggest the possibility of an upturn in general economic activity.
This trend is likely to continue throughout the year.

Non-performing loans increased from 29% to 31% during the period under review with the majority of them stuck within the mining and agriculture sector.

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