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Matabeleland North Minister of State Cde Cain Mathema (centre) speaks to the National Building Society (NBS) managing director Mr Ken Chitando (right) while the chairman of NBS board of directors Mr Nimrod Chiminya listens during the NBS presentation of its housing projects at a local hotel last Friday. — Picture by Dennis Mudzamiri

Oliver Kazunga, Senior Business Reporter
THE National Building Society (NBS) has announced plans to introduce a low-cost mortgage housing scheme for the Diaspora community in a bid to improve the country’s housing delivery in line with the Zim-Asset objectives.

Wholly owned by the National Social Security Authority (NSSA), NBS is set to open four other branches in Chinhoyi, Gweru, Zvishavane and Masvingo in the next few months in addition to the two that were launched in Harare and Bulawayo last year.

As part of efforts to reach out to potential home seekers, the building society is also targeting to establish 20 banking agents across the country this year.

Under Zim-Asset, the Government targets developing 300 000 housing units by 2018.

In an interview on the sidelines of their housing development road show in Bulawayo on Friday, NBS managing director Mr Ken Chitando said:

“In the next three months we will be releasing a product that meets the needs of the Diaspora market. In the meantime, we are working on documentation that meets the regulatory requirements for the Diaspora market before we start the mortgage scheme.”

The road show, which was similar to other events that began at the end of last month in other parts of the country including Harare, was aimed at creating strategic alliances with different stakeholders such as private developers and suppliers of building materials.

Mr Chitando said NBS would ensure it also continues to deliver low-cost housing units to people in the Diaspora.

The building society’s target market was low-income earners such as Small to Medium Enterprises, first-time home owners, and the National Social Security Authority (NSSA) pension fund contributors, among others.

Earlier in his address, Mr Chitando said, premised on their quest to deliver affordable houses to low-income earners, the mortgage interest rates were pegged at 9,5 percent per annum.

“And for those who are not the first time home owners and are not building in high density areas, the mortgage interest rate is 11,5 percent per annum,” he said.

The maximum tenor for the NBS mortgage is 25 years.

In 2016, Mr Chitando said despite focusing on laying the infrastructure for the housing development project, they managed to deliver 1 000 housing units.

The building society, which has so far made further investment into housing projects, has set aside an additional funding ranging between $30 million and $35 million.

NBS targets to deliver 10 000 residential units this year and 100 000 by 2021. Zimbabwe’s housing backlog is estimated at 1,25 million.

— @okazunga