Chinese firm to launch $10m mortgage facility
CHINESE firm, China Industrial International Group Zimbabwe will this year launch a $10 million mortgage facility for low-cost housing developments across the country.
The group will develop an estimated 1000 houses in Harare alone using steel technology. The houses will have solar furnishings to enhance energy efficiency.
Already, a demo house has been built in the Stoneridge area while school blocks have also been constructed in Shurugwi, Zvishavane and an orphanage in Hatcliffe using the same technology.
In an interview, CIIG chief executive Mr Nie Hai Yang said the project will target the civil service and other low income earners in search of home ownership.
He indicated his company was in deliberations with the Ministry of Local Government, Public Works and National Housing for the project on implementation of the project.
“We are looking at developing houses in Stoneridge and the rest of Zimbabwe on a mortgage facility,” he said.
“We are targeting low income earners, and right now we cannot say how much each house will cost but it will definitely be cheaper. The technology we want to use is both cost effective and energy efficient compared to the conventional housing development,” said Mr Yang.
Steel technology is 30 percent cheaper compared to conventional houses.
Mr Yang said, using the technology a three or four bedroomed house can be constructed within seven days.
“We have been receiving a lot of enquiries from the market over this steel structure technology and we are excited we will offer housing solutions to people that is also affordable,” said Mr Yang.
Local Government, Public Works and National Housing Minister Saviour Kasukuwere told The Herald Business that the project would be a gamechanger in the construction sector as it would make housing affordable for citizens.
“We welcome the initiative from CIIG. It’s the sort of breakthrough we have been waiting for after having witnessed building institutions refuse to support local authorities and Government initiatives.”
CIIG will become one of the many organisations to provide mortgage facilities this year for low cost housing projects, expected to reduce the country’s housing backlog which is currently at 1,2 million units.
Government has emphasised the need to narrow the housing backlog, in line with objectives of the economic blue print Zim-Asset.
In line with this, Government has indicated it will provide State land to local authorities to enable them to offer schemes that are affordable to the general public, according to the 2017 National Budget.