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DIVERSIFIED  insurance giant Old Mutual has embarked on a US$62 million housing project in which it will construct 15 000 low-cost houses in various parts of the country, an official has said. Zimbabwe is struggling to meet a housing backlog of over 1,5 million. On the other hand, mortgage financiers are battling liquidity challenges which have prevented them from providing funds at affordable interest rates.

Old Mutual Zimbabwe chief executive officer Mr Jonas Mushosho said the project would span five years.
“The purpose of the housing fund is the realisation that there is a major and serious backlog in this country.

“There has not been a major housing programme for many, many years,” he said.
The City of Harare has been the first to partner with Old Mutual, providing land for construction of 3 102 houses in the high-density suburb of Budiriro.

Under the first phase of the project, 1 584 housing units, which are at various stages of construction, are being built.
The units, which are two- and four-roomed, will be commissioned early next year.
Mr Mushosho said the tenders for construction were awarded to indigenous companies.

Firms involved in the construction include Masimba Holdings, formerly Murray & Roberts Zimbabwe, Big Nyathi, Mutual Contractors and Manifest.

“All the contractors are working with speed and are ahead of schedule,” said Mr Mushosho, adding that strict quality procedures were being adhered to.

The houses will have an estimated lifespan of over 50 years.
Old Mutual subsidiary, the Central African Building Society, will provide mortgage finance for the houses which cost between US$22 000 and US$27 000.

Mr Mushosho said the houses were meant for first-time owners, who are on the City of Harare housing waiting list.
To qualify for mortgage, applicants have to earn between US$900 and US$2 000 a month.

Mr Mushosho said the cost of the houses was higher than anticipated due to the fact that the City of Harare had failed to finance provision of infrastructure such as roads and sanitation which was now being undertaken by Old Mutual.

He said the project had created 875 jobs. – New Ziana.