BancABC Zimbabwe and Shelter Afrique agree new credit line

Jul 11, 2011

BancABC Zimbabwe and Shelter Afrique have signed a new deal to aid the financing of mortgages.

Regional housing finance and development institution Shelter Afrique has agreed to offer a new $7 million (€4.9 million) line of credit that will also facilitate the development of property, the Independent reports.

Managing Director of BancABC Hashmon Matemera described the arrangement as a "milestone" for the two organisations.

The money from Shelter Afrique will be used to expand the mortgage market and comes with competitive interest rates, as well as a repayment term of up to ten years.

"This line of credit is very important to both BancABC and the Government of Zimbabwe, particularly at this time of liquidity challenges," Mr Matemera added.

He said investment is also needed in the country's housing sector, as there is currently a backlog of more than one million units.

BancABC was previously known as the African Banking Corporation and has operations in Botswana, Mozambique, Tanzania, Zambia and South Africa, as well as Zimbabwe.