AS Zimbabwe ramps up its mission to tackle the national housing deficit, Shelter Afrique Development Bank (ShafDB) has become a pivotal force in shaping the country’s real estate financing landscape. The Kenya-based housing financier is bolstering long-term housing development, enhancing institutional capacity, and pioneering innovative funding models. From expanding credit lines for local banks and crafting new guarantee structures to championing the creation of a secondary mortgage market, ShafDB is significantly deepening its commitment to Zimbabwe. In this wide-ranging interview, our chief reporter Melody Chikono (MC) sat down with Gibson Mapfidza (GM, pictured), ShafDB’s chief business officer for investments and advisory services, to discuss the progress. Below are excerpts from the interview:
MC: Last year, you indicated that your plan was to continue to work with Tier 1 and Tier 2 banks with a proven track record of financing housing, real estate and urban development. Can you take us through the progress you have made?
GM: Over the past year, Shelter Afrique Development Bank has made solid progress in partnering with Tier 1 and Tier 2 banks that have a strong track record in housing and real estate finance in Zimbabwe. Year-to-date, the bank has disbursed US$25 million to Zimbabwe, including a US$10 million facility to newly onboarded FBC Crown Bank Ltd, further supporting housing development initiatives. Additionally, ShafDB is finalising internal approvals for a facility with a new partner bank, expected before year-end.
This will take our total housing finance support in Zimbabwe to US$40 million for 2025. ShafDB’s focus is on providing long-tenured facilities that enable developers to align repayments with projects’ sales proceeds. The bank remains committed to enhancing access to affordable housing finance and will continue to monitor the impact of these facilities advanced to all the financial institutions in Zimbabwe to ensure the delivery of affordable housing and supporting urban infrastructure in line with its mandate.
MC: You have been using the guarantee structure to finance developers through banks, a product which you have perfected in West Africa. How far have you gone in adapting this for east and southern Africa?
GM: Yes, the guarantee structure has been a successful instrument for us in West Africa, and over the past year, we have made steady progress in adapting it to the central, east and southern African markets. We have engaged several partner banks and developers to contextualise the product to local regulatory and market conditions, ensuring it effectively de-risks housing finance transactions. Our limited footprint across Africa necessitates us leveraging commercial banks in our member countries; financing real estate developers through financial institutions and leveraging already existing business relationships.
MC: How about Zimbabwe?
GM: In Zimbabwe, we are now in the advanced stages of structuring pilot transactions that will demonstrate the viability of the guarantee model. Once fully-rolled out, this product will complement our existing credit lines by enhancing access to finance for developers, particularly those delivering affordable housing. Our goal is to replicate the success achieved in West Africa by creating a sustainable, scalable guarantee framework tailored to the dynamics of central, east and southern Africa.
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MC: You have been engaging the government to find ways of sovereign lending through the Infrastructure Development Bank of Zimbabwe (IDBZ). What progress have you made?
GM: ShafDB has made steady progress in engaging the government of Zimbabwe on supporting government housing programmes through IDBZ and the Urban Development Corporation (UDCorp). We are actively engaging with the minister of Housing and Social Amenities — who is an active member of our board of governors, IDBZ, UDCorp and other relevant stakeholders to explore structured financing solutions that can support the government’s housing and urban development programmes. We plan to sign a tripartite MoU (memorandum of understanding) by the end of the year clearly outlining the roles of the three parties. As part of this effort, we are diligently working on establishing a housing special purpose vehicle, which will provide a scalable vehicle and framework to mobilise public and private sector resources for housing projects. These engagements are ongoing, with the aim of launching the initiative in 2026, initially targeting the two major cities: Harare and Bulawayo.
MC: What is the overall focus?
GM: Overall, our focus is on creating sustainable, scalable financing structures that leverage and blend DFI (a development finance institution), philanthropy, sovereign and private resources to accelerate delivery of affordable housing. The initiative will also ensure the adoption of best practices in real estate finance and development, promoting efficiency, transparency, and sustainability in the built environment sector.
MC: What role has ShafDB been playing in bridging the financing gap for housing projects in Zimbabwe?
GM: ShafDB has been supporting Zimbabwe’s housing value chain primarily through banks. To increase impact in housing delivery, job creation, and climate resilience, we intend to engage directly with developers through our guarantee model and Project Finance Group (PFG). Leveraging our continental experience and best practices, we plan to run capacity building and project preparation workshops for real estate developers in 2026. Through our PFG offerings, we partner with established developers, financing up to 70% of a project’s total development costs and structuring facilities to allow repayment from housing sales proceeds, ensuring both financial sustainability and project viability.
MC: With high interest rates affecting borrowing, what strategies can developers and homebuyers adopt to finance projects sustainably in Zimbabwe?
GM: High interest rates in Zimbabwe make traditional borrowing challenging, but there are strategies developers and homebuyers can adopt to finance projects sustainably. For developers, it is critical to structure projects efficiently, conduct thorough project preparation, and integrate long-term debt strategically into financial models. Partnering with development banks such as ShafDB can provide access to long tenor, structured financing, which aligns repayments with cash flows from housing sales. Additionally, developers can explore joint ventures, public-private partnerships, and mezzanine financing to diversify funding sources and reduce reliance on high cost debt.
MC: How about homebuyers?
GM: For homebuyers, strategies such as staggered payments, cooperative housing schemes, and mortgage refinancing products can make homeownership more affordable. Promoting the development of a secondary mortgage market will also create avenues for lower cost, longer term finance for both developers and buyers. Ultimately, sustainable financing in Zimbabwe requires innovative solutions, risk sharing, and careful project structuring to navigate high interest rates while ensuring housing delivery.
MC: Zimbabwe’s property sector growth is being supported by investors focused on capital preservation and balance sheet strengthening. How does ShafDB view this trend, and what role can the institution play in ensuring the sector’s continuity and resilience?
GM: We view the current trend in Zimbabwe’s property sector — driven by investors focused on capital preservation and balance sheet strengthening — as a positive signal of confidence in real estate as a stable asset class. This trend highlights the importance of financial discipline, market-oriented development, and risk mitigation in sustaining the sector.
However, it is important to note that inflation hedging comes not simply from holding a physical asset, but from creating properties that meet property market needs in terms of location, design, functionality, and potential for future income growth to achieve the needed hedging. ShafDB can play a key role in ensuring continuity and resilience by providing long-term, structured financing to developers and financial institutions, helping them manage cash flow and project risks. Additionally, through initiatives such as employer housing schemes, where we crowd-in private sector, diaspora housing and support for a Zimbabwe Mortgage Refinancing Company, ShafDB can promote market standardisation, access to long-term capital, and adoption of best practices, creating an environment where both institutional and private investors can thrive. Ultimately, our approach is to strengthen the housing finance ecosystem, ensure financially viable real estate developments, and support the delivery of affordable, sustainable, and resilient housing across Zimbabwe.
MC: What strategies should the Zimbabwean property sector adopt to attract long-term investors?
GM: To attract long-term investment, Zimbabwe’s property sector needs to strengthen financial discipline, adopt international best practices, and develop projects that are financially viable and risk-mitigated. Embracing emerging trends such as climate resilient and energy efficient buildings can also enhance investor confidence, particularly for institutional investors seeking ESG-compliant opportunities. Additionally, creating a secondary mortgage market and promoting structured financing instruments, such as mortgage-backed securities, can provide predictable, long-term returns. Shelter Afrique Development Bank supports these objectives through several initiatives. Our PFG provides long-term, structured financing to established developers, while we are working with authorities to establish the Zimbabwe Mortgage Refinancing Company to deepen the mortgage market and mobilise institutional capital. We also support capacity building programmes and green building initiatives, including the IFC EDGE tool, to embed climate resilient practices and strengthen the overall investment appeal of the sector.
