Govt ropes in banking sector on title deeds The stand owners will be able, individually and collectively, to use their title deeds as collateral security to obtain the finance required to develop the needed services.

Wallace Ruzvidzo-Herald Reporter

The banking sector has now been roped in to bankroll the development of informal settlements where stand owners will be issued with title deeds under the Presidential Title Deeds Programme, National Housing and Social Amenities Permanent Secretary Engineer Theodius Chinyanga has said.

CBZ Bank is the leading financial institution involved. The stand owners will be able, individually and collectively, to use their title deeds as collateral security to obtain the finance required to develop the needed services.

President Mnangagwa is expected to launch the programme nationally in due course, as the Second Republic continues with efforts to leave no one and no place behind.

In an exclusive interview yesterday, Engineer Chinyanga said Kwangu Trust, which is the development partner, was the conduit between Government and banks. 

“We have got a trust called Kwangu, founded by the Head of State to become a middle entity between us and banks. This trust has trustees who are private business people, who have, along their lives, gained the confidence of financial institutions.

“Now they are standing between Government and the financial sector and they help us to get money so that as we develop and as we are getting compliance, when the title deed comes out it will be put on a bond.

“The rates which will be paid once compliance is gotten will be ring fenced so that they are able to pay back the money we will have loaned for infrastructure. 

“It’s not for free. We are bonding these properties because the banks that are raising money being led by CBZ will want their money back,” he said.

Eng Chinyanga said the issuing of title deeds would begin in earnest during the first week of July.

A dry run of the printing centre as well as the securitised paper were all now in place.

“Kwangu Trust is busy setting up site offices and these will be carrying out the processes because they are now digital. The database is logged on site. They have actually set up offices here at the ministry to receive all verified files and digitise them.

“Next time we will be talking about file numbers not physical files” he said.

The Presidential Title Deeds Programme, said Eng Chinyanga, would be rolled out step by step.

He said a lot of work was being done to ensure the rollout was above board, as all technicalities were being worked out.

“You will see numbers like 55 000 in Chitungwiza, 18 000 in Epworth and so on, those are real numbers, they are not thumb-suck because we have been working with the trust all along doing all the donkey work, but we have just not been announcing it because its like me announcing everyday that I have come to work, it’s what I must do.

“Those are the numbers at the local authorities that have been approached so far. We are doing it step by step. It’s not about Epworth, it’s about the nation. We have local authorities that are well ahead.

“The President launched it in Epworth yes, but we want him to do a national launch of this programme,” he said.

Eng Chinyanga then outlined the financial modalities of the programme.

“CBZ is the leading bank, it is not the only bank but everyone else is coming under them so in each area the trust will register a bond holding company. 

“Basically, the rates will be going to this company, which will then be used to pay the loaned amount,” he said.

The Permanent Secretary said contrary to beliefs by some, the title deeds programme would be rolled out countrywide and not just in Epworth. 

“He launched the programme in Epworth, this is a national project. 

“The President as a leader defines the end point. He doesn’t define the processes and, when he defines the end point, he has not broken neither does he want to breach his own laws. So this is where we come in as technocrats.

“NDS1 defines the path that we follow in terms of projects as sectors, the end point for us is title deeds,” he said.

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