Go back to mortgage lending, building society told

The calls comes as most financial institutions have cut back on mortgage lending due to shrinking disposable incomes caused by a volatile local currency, the Zimbabwe dollar. The Zimbabwe dollar was replaced by Zimbabwe Gold.
PUBLIC Service, Labour and Social Welfare minister July Moyo says building societies should go back to mortgage lending to allow workers to become homeowners.

The calls comes as most financial institutions have cut back on mortgage lending due to shrinking disposable incomes caused by a volatile local currency, the Zimbabwe dollar. The Zimbabwe dollar was replaced by Zimbabwe Gold.

This has left, most workers in both the public and private sectors struggling to buy or build houses.

Moyo made the remarks at the commissioning of the National Building Society (NBS) housing project in Glaudina, Harare, last Friday.

He said the government was happy with the project the National Social Security Authority, shareholders of the building society, and NBS were doing to address the housing challenge. It is estimated that Zimbabwe has a housing backlog of over 1 million.

“Your efforts demonstrate how effective public-private partnerships can drive national development and address critical social issues such as housing,” Moyo said.

“Housing is a key pillar of social welfare and we will continue to invest in projects that uplift and empower our people.

“The general thrust of the government is that our building societies should go back to basics to build houses to give mortgages at affordable prices.”

He said this would benefit not just upper middle-income earners, but the median income society too.

NBS managing director Sifiso Mahlangu told NewsDay Business that the building society would ensure it played a role in building affordable housing units for all segments of society.

“I’m excited that the Glaudina project is one such which will continue towards reducing the housing backlog and shows firm support of our government’s vision. As we commission this project, we look forward to seeing the positive impact it will have on the lives of its residents and the community at large,” he said.

“We are confident that this NBS Glaudina project will set new standards for quality and innovation in our industry and we are happy to play our part in fulfilling the Zimbabwe National Human Settlement Policy by providing these high-rise residential flats. Please note that these flats are selling off-plan.”

Mahlangu said the two blocks under construction would be completed at a cost of US$2,5 million and were expected to be ready for occupation in February 2025.

NBS executive marketing head Mildret Kujinga said the new housing project would address affordability issues.

“They are really for the first-time homeowners in terms of their price, and it’s also a middle density.”

She said NBS would deliver over 200 stands in the initial phase and 700 stands over the next five years as well as provide 300 flats.-newsday