Gvt re-examines the mortgage finance system

19 Jun, 2022 - 09:06 0 Views
Gvt re-examines the mortgage finance system Minister Daniel Garwe

The Sunday News

Judith Phiri, Business Reporter

THE Government says it is re-examining the mortgage finance system for those in the informal sector to access housing finance, as the country targets constructing 220 000 houses by 2025.

The mortgage finance system has been viewed as one of the impediments that hinder access to housing for citizens and vulnerable groups who are in the informal sector.

To address the estimated 1,5 million housing backlog, Government has stepped up efforts towards its target of delivering affordable housing to Zimbabweans and is also working tirelessly to remove all the impediments that hinder access to such.

Presiding over the launch at BancABC Hopelyn Housing Estate next to Bulawayo’s Mahatshula suburb where he unveiled close to 90 fully serviced stands on Friday, National Housing and Social Amenities Minister Daniel Garwe said they needed to re-examine the mortgage finance system.

“As we move towards our target of 220 000 houses by 2025, we are amending laws such that even those who are not formally employed can access mortgage finance, this is important because most people here are self-employed and have for years been excluded from mortgage finance to access housing loans,” said Minister Garwe.

He said a majority of Zimbabweans were self-employed and terms such as requirement for pay slips should be reviewed.

The Minister commended Government’s strategic partnership with Shelter Afrique in housing infrastructure development which is now bearing fruit.

This relationship with Shelter Afrique has seen a number of banks in Zimbabwe partnering with Shelter Afrique for housing development projects.

BancABC is one such institution that recently concluded a US$11 million housing development deal with Shelter Afrique to provide low to middle-income housing infrastructure.

BancABC Managing Director Dr Lance Mambondiani expressed confidence in the country’s investment climate, hence their support to the Second Republic’s vision on housing delivery.

“We are partnering with government in housing delivery and as such we have invested money in partnership with Hopelyn Housing to service these stands and we thought of starting in Bulawayo then spreading to other parts of the country,” he said.

Hopelyn and Hopeville head of marketing for the board, Ms Lynne Knight said they have really enjoyed their partnership with BancABC.

She said the bank understood their vision of the development that is to be more than a home and a lifestyle and create stands, homes and units whereby the medium density can enter the housing market.

“The partnership with Banc ABC means not only do we produce stands but also, we produce this financial mechanism. One of the things we have really embraced and we are excited about is President Mnangagwa’s model of the Vision 2030 of an upper-middle-income economy where we see the medium density growing,” added Ms Knight.

Meanwhile, Zimbabwe will next month host 45 nations for the Shelter Afrique 41st Annual General Meeting (AGM) and Symposium in Victoria Falls from 25 to 29 July 2022. The event that will be held under the theme: “Climate Change and the Built Environment,” will be attended by financial institutions to deliberate on the status of housing delivery on the continent.

“This unveils an opportunity to Government to shape and lead the conversation on affordable housing in the region and confirms that the country is viewed as an ideal destination for foreign direct investments,” said Minister Garwe.

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