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CBZ housing projects get US$15m boost

ShafDB is a leading pan-African institution committed to financing and advancing housing, urban and related infrastructure developments.

PAN-AFRICAN housing lender, Shelter Afrique Development Bank (ShafDB), has extended a US$15 million housing loan to CBZ Bank to finance housing projects and subsequent mortgage origination.

ShafDB is a leading pan-African institution committed to financing and advancing housing, urban and related infrastructure developments.

The deal with CBZ comes as housing availability remains low nationally owing to poor financing and mortgaging facilities, despite Zimbabwe having a housing backlog of over one million.

Further, Currency volatility and low foreign currency generation has made it hard for local financial institutions to avail their own funds to support mortgaging and financing options.

ShafDB and CBZ representatives met in Harare yesterday and signed the agreement in which  the former will provide the latter with funding for the construction of residential housing units and mortgages.

ShafDB managing director Thierno-Habib Hann said the deal underscored the mutual trust and confidence between the two institutions.

“Shelter Afrique has had a reliable and trusted partner in CBZ Bank since the commencement of this partnership over a decade ago. CBZ Bank’s ability to secure and responsibly manage substantial loans highlights its financial stability, prudent financial management and strategic foresight,” he said.

“This partnership has not only supported the growth and stability of CBZ Bank but has also advanced Shelter Afrique’s mission of promoting housing and urban development initiatives in Zimbabwe.”

The conclusion of the US$15 million credit line marks the third significant collaboration between ShafDB and CBZ Bank.

The partnership between the two institutions dates back to 2012 when CBZ first secured a US$7,5 million credit line from ShafDB.

Building on the success of this initial collaboration, CBZ Bank secured a second round of similar funding in 2013, amounting to US$8,3 million.

Both facilities were 10-year terms used to finance the construction of low-cost housing projects and the subsequent mortgage origination for the beneficiaries of the projects.

CBZ Holdings group chief executive officer Lawrence Nyazema said the additional financial infusion would further strengthen the bank’s position in the housing sector and contributed to its sustained growth and development.

“CBZ Bank has enjoyed an excellent working relationship with Shelter-Afrique Development Bank since 2012, when the bank signed the first line of credit. We are happy to partner again and look forward to a longer-term relationship,” he said.

“As a bank, our core focus remains on sourcing much needed lines of credit to support the productive sectors of our economy such as the housing sector and this will go a long way in easing the liquidity challenges.”

ShafDB shareholders are 44 African governments, the African Development Bank and the Africa Reinsurance Corporation.

ShafDB delivers financial solutions and associated services that support both the supply and demand aspects of the affordable housing value chain.

As a premier provider of financial, advisory, and research solutions, ShafDB is focused on addressing Africa’s housing crisis through financial institutions, project finance and public-private partnerships, striving to achieve sustainable developmental impact.

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