Banking sector urged to complement government
The banking sector has been called upon to complement government’s efforts to reduce the housing backlog by providing reasonable mortgage financing for various housing projects.
The absence of both private and public sector finance to service land for housing development has been cited as the major reason for the country’s huge housing backlog.
Speaking at the launch of a housing initiative between a local bank and the Zimbabwe Amalgamated Housing Association (ZAHA), Business Development Manager with the bank, Mrs Florence Gowora said the current huge housing demand calls for collective action by all concerned stakeholders in particular the financial services sector.
Representatives of the Zimbabwe Amalgamated Housing Association expressed optimism that the partnership with the bank will ensure that the low income segment of the population has access to descent housing and urged other financial institutions to come up with affordable housing mortgages as a way of reducing the huge housing backlog.
The increase in rural to urban migration has been cited as another factor contributing to the current housing backlog.
In the 2012 Mid-Term Budget, the Ministry of Finance allocated only US$6.4 million towards housing development projects aimed at easing the housing backlog.