Zimbabwe: IDBZ to invest $100 million to reduce housing backlog
The Infrastructure Development Bank of Zimbabwe (IDBZ) is to raise $100 million (€80 million) to build low-cost housing across the country.The Infrastructure Development Bank of Zimbabwe (IDBZ) is to raise $100 million (€80 million) to build low-cost housing across the country.
The Finance Ministry has approved the bank's use of tax-free debt instruments and housing bonds to fund this project.
"Individuals with small savings, including co-operatives, seeking to own a house or a serviced stand will shortly be invited to invest in these tax-free debt instruments under a programme targeted at delivering their dream house over a short period of time," said IDBZ's chief executive Charles Chikaura, quoted by The Herald.
With rural-to-urban migration increasing and urban squatter camps growing, housing shortage has become a significant issue in Zimbabwe.
According to the Ministry of National Housing and Special Amenities, there are approximately 1.2 million people on the government's national housing waiting list, although the exact figure is not known because most local authorities do not collect the necessary data.
The government intends to reduce the housing backlog through the provision of serviced land, strengthen public private partnerships and adoption of new building technology.
It is also planning to strengthen micro-housing finance institutions and increase densification. Charles Chikaura said the bank was looking to build 30000 housing units within the next three years.