Govt to issue housing bonds

Information minister Monica Mutsvangwa

THE government says it plans to float housing bonds as an alternative means to raise funding in its quest to build 220 000 units by 2025.

This was revealed by Information minister Monica Mutsvangwa at this week’s post-Cabinet briefing with the media. Zimbabwe in 2021 approved the National Human Settlement Policy to construct 220 000 units by 2025. Official statistics indicate that to date, a total of 136 850 stands have been fully serviced. 

Servicing of a further 43 605 stands was in progress, while the number of completed houses stands at 49 150. About 42 706 houses are under construction, official statistics show.

“The government would like to inform the public that housing bonds will be floated, which are an alternative method of raising funding for housing delivery,” Mutsvangwa said.

“Housing bonds are also a sustainable source of funding for affordable housing guaranteeing consistent and long-term development initiatives.”

Between 2020 and 2021 commercial banks namely CBZ, ZB Bank, FBC and BancABC accessed a total of US$65 million through lines of credit from Shelter-Afrique. 

These banks have submitted fresh applications as repeat clients for accessing funding for social housing while the National Building Society (NBS); Fidelity Assurance Company; and three other local property developers have also submitted applications for the same funding, the minister added.

“These provide opportunities for investors, thus creating stable, predictable and attractive investment returns,” she said.

Under the Rural and Social Amenities Programme, the government is constructing blocks of flats in rural district councils to cater for civil servants residing in the eight rural provinces. The construction of 400 blocks of four-storey flats has started with a pilot project being undertaken in Uzumba Maramba Pfungwe in Mashonaland East Province. 

Mutsvangwa said 3,9 million jobs have been created in the construction sector through servicing of stands, manufacturing of materials, retail and hardware sales since the inception of the National Development Strategy 1.

“The housing sector’s demand for various materials stimulated production of cement, hardware, bricks among a host of other construction commodities,” Mutsvangwa said.

“The issuance of title deeds to Epworth residents has unlocked value for beneficiaries through financial inclusion. Title deeds will continue to be issued to different settlements across the country.” 

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