IDBZ unveils draft housing policy

IDBZ unveils draft housing policy
Infrastructure Development Bank of Zimbabwe (IDBZ)

Infrastructure Development Bank of Zimbabwe (IDBZ)

Business Reporters

THE Infrastructure Development Bank of Zimbabwe (IDBZ) has come up with a draft housing policy detailing guiding sector interventions aimed at easing the housing shortage in the next two years. IDBZ policy strategy seeks to support Government’s 2012 National Housing Development Programme target of providing 1,2 million serviced stands, by facilitating development of at least 5 000 serviced stands annually between 2015 and 2018.The draft policy outlines plans to acquire land for housing development and funding mechanisms for the delivery of affordable units. IDBZ has since invited stakeholder input on its proposal.

To deliver affordable housing units, IDBZ will seek to acquire land and development permits, extend financial and technical resources to payer in the sector, enter into partnership public or private players and assist bonafide co-operatives in housing projects.

IDBZ plans to acquire land from the State, local authorities, privately owned land by individuals or corporates with uncontested tittles and development permits. It will also seek to take advantage of land available through Government approved co-operatives and land held by financial institutions or development banks for housing development.

“IDBZ will spearhead capital raise strategies to argument available resources and leverage on relationships with other critical local and international stakeholders in infrastructure projects,” said IDBZ.

To that end, the bank plans to seek debt and equity capital for housing projects from insurance companies, pension and mutual funds, international development finance institutions, donor agencies and other development partners. The bank will facilitate participation of the private sector in housing infrastructure housing delivery through PPPs.

“The bank will introduce specific housing development bonds or bills for targeted projects with clear identifiable sources of payment. The bank is expected to assist local authorities in projects preparations to bankability stage and thus strengthening the case on obtaining bonds or bills, borrowing power certificates from the parent ministry,” said IDBZ.

The bank would engage external institutional investors and development finance institutions such as Afreximbank, PTA Bank, Development Bank of Southern Africa, among others to augment limited domestic resources.

Further, IDBZ plans to promote mortgage finance as a way of enhancing owner occupies accommodation. IDBZ housing sector policy recognises challenges in housing delivery which include inadequate investment by both public and private sector resulting in critical backlog in urban areas, poor housing in rural areas.

“”The bank’s objectives is to provide finance for off-site and on-site infrastructure in line with the National Housing Policy, the fulfilment of Zim-Asset economic blueprint and Sustainable Development Goals,” said IDBZ.

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