Shelter Afrique applauds Zimbabwe positive credit rating
AFRICA-focused housing financier, Shelter Afrique, has commended Zimbabwe for being one of the countries whose financial sector has cleared loan obligations making it eligible to access new lines of credit.
Because of the positive credit rating, Zimbabwe is among the first countries to benefit from a US$25 million Sovereign Loan. This came up during the 42nd Annual General Meeting of Shelter Afrique held in Abuja, Nigeria from 8 to 12 May, 2023.
Zimbabwe is a shareholder of Shelter Afrique, a pan-African banking institution that exclusively supports the development of affordable housing and real estate sector growth in Africa.
National Housing and Social Amenities, Daniel Garwe, who led a delegation comprising senior Government officials, town clerks from seven local authorities namely Bulawayo, Gweru, Mutare, Kwekwe, Chinhoyi, Rusape, and Epworth briefed the Cabinet on the trip.
The delegation also included representatives from UDCORP, the National Building Society, Fidelity Life, Leengate Development Company and Cape Valley Properties.
Information Publicity and Broadcasting Services Minister Monica Mutsvangwa
In her post-Cabinet report last night, Minister of Information, Publicity and Broadcasting Services, Monica Mutsvangwa said: “The nation is being informed that Zimbabwe was applauded for being one of the countries whose financial sector had cleared loan obligations and is thus eligible to access new lines of credit.
“Zimbabwe is among the first countries to benefit from a US$25 million Sovereign Loan because of the positive credit rating and are eligible to access financing housing development in their areas,” said the minister.
To that end, all local authorities have been urged to take advantage of such facilities.
Minister Mutsvangwa said all five housing development companies that attended the AGM have since submitted proposals, which are already under consideration as they clearly benefit from the fruits of the Second Republic’s engagement and re-engagement policy.
“This should boost development in the housing development sector and thereby hasten the attainment of our goals for Vision 2030,” she noted.
Over the years, Shelter Afrique has been providing loans to the private sector and they are now working on modalities to establish a fully-fledged office in Harare.
In 2021, BancABC concluded a US$11 million housing finance deal with Shelter Afrique. The combined US$11 million housing financing facilities were expected to be deployed towards the development of 2 500 housing units for low and middle-income groups.
The credit lines were extended at a time the Ministry of Housing and Social Amenities has moved to reduce the national housing backlog, which stands at 1,5 million.
Demand for housing in Zimbabwe continues to grow while the provision of housing financing facilities remains limited.
Low-income earners have been the hardest hit by the shortage of affordable housing, resulting in the sprouting of numerous illegal settlements, slums, and backyard shacks.
Similarly, housing shortage in Zimbabwe has seen unsuspecting home seekers being duped out of their hard-earned money by unscrupulous and bogus residential housing developers and or land barons.
BancABC said it was against the background that it had sought funding to finance low-cost housing for low-income earners.
The bank has previously collaborated with Shelter Afrique in housing schemes and in 2011 the two concluded a package for the construction of 150 housing units.
In 2015, Shelter Africa extended a US$5 million loan facility to BancABC to finance the trade activities of importers and exporters of building materials and equipment.
Last year in July, Zimbabwe hosted Shelter Afrique 41st Annual General Meeting in Victoria Falls. Shelter Afrique is headquartered in Nairobi, Kenya and has 45 member countries as well as three institutional investors, the Africa Development Bank (AfDB), Africa Reinsurance Company (Africa RE) and the African Solidarity Fund (FSA).-chronicle.c.zw
