Shelter Afrique Development Bank (ShafDB), a pan-African housing finance institution, has provided a US$15 million facility to CBZ Bank to support the construction of residential housing units and mortgage financing.
ShafDB is dedicated to promoting housing and urban infrastructure development across Africa, operating through a partnership with 44 African governments, including Zimbabwe, as well as the African Development Bank (AfDB) and the Africa Reinsurance Corporation (Africa-Re).
During the signing ceremony, Shelter Afrique’s Chief Business Officer for Investment and Advisory Services, Mr. Gibson Mapfidza, emphasized that the collaboration with CBZ Bank is not new.
The relationship began in 2012 with a US$12 million facility, followed by an additional US$8 million in 2014. “We have confidence in this partnership, which is why we are continuing to build on it. CBZ has a proven track record in financing affordable housing, which is why we’re here today,” said Mr. Mapfidza.
He highlighted that Shelter Afrique is undergoing a transformation and has structured its services into four main verticals.
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The first, the Financial Institution Group (FIG), focuses on the demand side of housing by providing credit lines to banks for mortgage lending, microfinancing, and collaborations with Real Estate Investment Trusts (REITs) in some countries.
“We have recognized that addressing Africa’s housing deficit of 52 million, including 1.5 million in Zimbabwe, requires interventions on both the demand and supply sides,” explained Mr. Mapfidza.
The second vertical, the Project Financing Group (PFG), provides direct financing to developers, contractors, and trade finance, particularly for imports from South Africa within the SADC region.
The third vertical focuses on Public-Private Partnerships (PPP) and sovereign funding, where Shelter Afrique works directly with its 44 member countries, the AfDB, and Africa-Re to mobilize funds and provide catalytic financing for housing projects.
The final vertical, Fund Management, caters to offshore investors interested in Africa’s housing sector. “We are tapping into Africa’s large diaspora market and collaborating with local banks to implement housing projects,” said Mr. Mapfidza.
CBZ Holdings Group CEO, Mr. Lawrence Nyazema, expressed that the new facility will reinforce CBZ Bank’s leadership in the housing sector and contribute to its continued growth. “Since 2012, CBZ has maintained an excellent relationship with Shelter Afrique, and we are excited to partner again, looking forward to a long-term relationship,” he said.
Nyazema explained that the US$15 million will help deliver 3,000 housing units, with a current project underway in Ruwa. “The Ruwa project has already begun, and we are committed to ensuring the right infrastructure is in place. Our goal is to extend this initiative beyond Harare, reaching other regions across the country,” he added.
Engineer Theodius Chinyanga, Permanent Secretary for the Ministry of National Housing and Social Amenities, emphasized that the funds should target the development of new housing to reduce Zimbabwe’s housing deficit. He also called on the financial sector to support efforts to increase Zimbabwe’s stake in Shelter Afrique from 1.6% to 5%, which could unlock additional funding for private sector housing projects.
This renewed partnership between Shelter Afrique and CBZ Bank underscores the growing momentum to address Africa’s housing challenges by leveraging strategic financial collaborations and infrastructure development initiatives.
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