CBZ invests in low-cost housing in Zimbabwe
CBZ Holdings will develop a $66.7 million (€48.5 million) land bank to be sold either as serviced stands or low-cost houses.CBZ Holdings will develop a $66.7 million (€48.5 million) land bank to be sold either as serviced stands or low-cost houses.
CEO John Mangudya told Standardbusiness that CBZ has also secured a $16 million funding from Shelter Afrique for housing development and that the bank's Cash Plus savings account has also mobilised funds "for the purpose of developing shelter for individuals".
Cash Plus is a term deposit savings account which does not incur charges but earns interest. At the end of the period, the account holder can borrow twice the amount deposited.
John Mangudya said Cash Plus had managed to mobilise US$20 million and a third of the deposits were channelled towards housing.
And the pool of funds channelled by financial institutions towards mortgage lending is expected to further rise in 2014, as banks and building societies respond to recent measures announced by the government.
The Ministry of Finance proposed to extend the exemption from income tax to receipts and accruals on mortgage finance offered by other financial institutions, the Financial Gazette reports.
Zimbabwe has been battling to reduce its
million housing backlog. According to the Zimbabwe Agenda for Sustainable Socio-Economic
Transformation (Zim Asset), the government plans to construct
housing units by 2018.