Lovemore Zigara, Midlands Correspondent
GWERU-based property developer Dr Tinashe Manzungu has set up a microfinance facility, which will cater for prospective house seekers.
The finance house Tinrue Financial Services will offer mortgage finance to people intending to buy stands or houses. The microfinance facility is now awaiting a licence from the central bank. Dr Manzungu said the micro- finance house will target people mainly from the informal sector who are not catered for by the mainstream financial services sector.
“Having a house is a big challenge facing Zimbabweans given that 70 percent of the people are in the informal sector. These people cannot afford to build houses because of stringent requirements for one to access housing loans from banks,” said Dr Manzungu.
He said as a property developer he realised that there was a gap hence the decision to establish a microfinance facility. “We will soon be offering loans to prospective home seekers who already have stands with our companies — Zimbuild Properties and Luxury Living,” he said.
Dr Manzungu said the advanced loans will be used to fund construction of beneficiaries’ houses and the loan repayment period was up to 15 years.
Last year the property company partnered with Government institutions and BancABC in a Public Private Partnership (PPP) arrangement. This saw Zimbuild refurbishing institutions such as schools, health institutions and other such public facilities.
Recently, Provincial Affairs Minister for the Midlands, Cde Jason Machaya, reported that the province had surpassed the 50 000 serviced stands and housing development target for low income earners in line with the objectives of Zim-Asset’s infrastructure development cluster. He attributed the success to close co-operation between the Government and private land developers.