Zimbabwe’s housing crisis to be addressed

04 June 2021 | Economics

PHILLEPUS UUSIKU

Pan-African housing development financier Shelter Afrique has signed a US$11 million housing deal with Harare-based African Banking Corporation (BancABC).

The 7-year facility includes a 20-months grace period which will be due for repayment in 2027. It will be used to construct 2 500 residential housing units, mortgage origination, home extension and improvement, onward lending to affordable housing projects, and financing small-scale commercial project such as small shopping malls

Commenting on the deal, Shelter Afrique Group Managing Director Andrew Chimphondah said the line of credit would be crucial in addressing the housing backlog in Zimbabwe.

“Our Centre of Excellence research shows that many African countries are facing a housing crisis. Zimbabwe, for instance, is facing an estimated housing shortfall of close to 1.5 million units. The extension of the US$11 million facility to BancABC reaffirms our commitment to addressing Zimbabwe’s housing crisis through provision of affordable housing solutions for her citizens,” Chimphondah said.

“These will be the third and fourth facilities to African Banking Corporation having granted it a ten-year US$7 million loan facility in 2011 and US$5 million in 2013 one-year-trade finance facility which was rolled over for one more year in 2014. The trade finance facility was repaid on schedule,” he said.

On his part, African Banking Corporation banking Chief Executive Officer (CEO),Lance Mambondiani, lauded the long-term partnership enjoyed by the two institutions.

“Our partnership with Shelter Afriques dates back to 2011 when BancABC drew its first facility. We are pleased to partner with Shelter Afrique again on a project of such magnitude, because of the many lives it will impact. Our Corporate and Investment Banking team has been working on putting this deal together and today we are proud to sign off on it. We look forward to a longer-term relationship as we explore further arears of interest together,” Mambondiani said.