ZIMBABWE – Pan-African finance institution that exclusively supports the development of affordable housing and real estate sector development in Africa Shelter Afrique, has signed US$11 million housing deal with Harare-based African Banking Corporation (BancABC) that will finance construction of 2,500 housing units and help buyers get mortgage loans.
According Shelter Afrique Group Managing Director Andrew Chimphondah, the facility targets construction of residential housing units home extension & improvement, onward lending to affordable housing projects, and financing small-scale commercial project such as small shopping malls.
“Our Centre of Excellence research shows that many African countries are facing a housing crisis. Zimbabwe, for instance, is facing an estimated housing shortfall of close to 1.5 million units. The extension of the US$11 million facility to BancABC reaffirms our commitment to addressing Zimbabwe’s housing crisis through provision of affordable housing solutions for her citizens,” said Chimphondah.
Chimphondah added that the latest facility to BancABC is the fourth, having granted the lender a ten-year US$7 million loan facility in 2011 and US$5 million in 2013 one-year-trade finance facility which was rolled over for one more year in 2014.
The trade finance facility was repaid on schedule, the pan-African housing development financier said.
“The extension of the US$11 million facility to BancABC reaffirms our commitment to addressing Zimbabwe’s housing crisis through provision of affordable housing solutions for her citizen”
Andrew Chimphondah – CEO, Shelter Afrique
“Our partnership with Shelter Afrique’s dates back to 2011 when BancABC drew its first facility. We are pleased to partner with Shelter Afrique again on a project of such magnitude, because of the many lives it will impact. Our Corporate and Investment Banking team has been working on putting this deal together and today we are proud to sign off on it. We look forward to a longer-term relationship as we explore further arears of interest together,” said Dr. Lance Mambondiani, CEO African Banking Corporation.
The 7-year facility comes with 20-months grace period and will be due for repayment in 2027.
Chimphondah says Zimbabwe is one of five countries to have completed their capital subscriptions till date.
“Zimbabwe continues to lead in the SADC region and indeed the organization as one of our most active shareholders and is a fine example of how we deliver on our second strategic goal of shareholder value and development impact.”
The line of credit has been extended at a time when the Housing and Social Amenities ministry has moved to reduce the national housing deficit which has grown significantly in the last few years to around 1.3 million houses. Banks have recently been diversifying into mortgage lending.
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