• Sun. Feb 16th, 2025

US$15m facility to support construction of 3 000 houses in Zim 

ByETimes

Aug 15, 2024

….Shelter Afrique Development Bank extends US$15m housing loan to CBZ Bank

By ETimes

HARARE – Shelter Afrique Development Bank (ShafDB) has extended a US$15 million credit facility to the CBZ Bank, a significant move to bolster housing development in Zimbabwe.

This funding is earmarked for the construction of residential housing units and enhancing mortgage origination, marking a pivotal moment in the ongoing collaboration between the two institutions.

The partnership between CBZ Bank and ShafDB has a rich history, dating back to 2012 when CBZ Bank initially accessed US$7.5 million in funding.

This successful collaboration paved the way for a second round of funding in 2013, totaling US$8.3 million. Over the past decade, these two 10-year facilities have played a crucial role in supporting the development of affordable housing projects and enabling mortgage financing for the beneficiaries of these initiatives.

CBZ Holdings’ CEO, Lawrence Nyazema, said this agreement continues a longstanding 12-year relationship with ShafDB.

“I see ourselves partnering for the next 100 or 200 years and our goal is basically to provide affordable housing solutions for our people,” he said.

“Zimbabwe is one of the few countries where you are offered a mortgage facility for two years that has to stop; a mortgage facility should be for 20 years or 30 years as long as you are still generating income to pay off that facility. So the aim is for us to make affordable housing units and affordable financing.”

Banks are now one of the biggest builders of residential real estate in the country, but demand for their products is low because of the high fees or interest associated with mortgages.

Gibson Mapfidza, ShafDB’s group chief business officer, cited the agreement as evidence of the strong trust and confidence between the two organisations.

“Today we are very happy that this line of credit that we are advancing to CBZ Bank has been done before. We trust the relationship, and we are very confident that CBZ Bank going forward will be able to deliver more,” Mapfidza said.

“So the US$15 million we are delivering today has a number that says these are the number of houses because our thrust is to solve the US$52 million housing deficit across Africa and 1.1 million housing deficit in Zimbabwe.”

The US$15 million facility is poised to go towards providing 3 000 houses.

CBZ Holdings, through its subsidiary, Datvest, is also expecting to complete its Northgate housing project, which is located 17 kilometres north of the Central Business District (CBD), in the next 18 months. The housing project, which spans over 1 000 hectares of land, started on 4 June this year and will be completed on December 5, 2025.

This comes as prospects for the residential segment remain high, underpinned by the firm demand for housing.

As Zimbabwe continues to grapple with housing shortages, the collaboration between ShafDB and CBZ Bank represents a beacon of hope.

By providing much-needed financial resources, both institutions are playing a crucial role in advancing housing and urban development initiatives.

This partnership not only supports the growth of CBZ Bank but also aligns with ShafDB’s mission to promote sustainable urban development across the continent.

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