house.jpgShelter Afrique which signed a US$7 million credit line facility for housing mortgage with a local financial institution early this week has promised to inject an additional US$20 million facility into the sector by year end.

 

 

In an interview with ZBC News, the company’s Managing Director, Mr. Allasane Bahk said his company which is targeting middle-income earners has seen potential in the country’s economy and promised to inject US$20 million.

“We have an appetite for more we are planning on issuing US$20 million and our focus  is on middle income earners because realistically low-income earners are not bankable,” Bahk said.

Minister of National Housing and Social Amenities, Mr. Giles Mutsekwa welcomed the move to target the medium income earning group adding that this will ease the burden on government to allow it to focus on low-income earners.

Giles said: “It is commendable for them to come in and focus on middle-income earners so that as gvt our burden is eased as we will focus on low-income earners.”

Zimbabwe is faced with a huge urban housing backlog since the country’s economy is facing liquidity challenges.

As a result, building societies which were the major financiers of housing projects have since stopped doing so.

By 2007 the housing backlog in major urban areas was estimated at 660 000 units.

The figure has since increased as not much has been done to mitigate the problem.