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Engineer George Mlilo

Conrad Mwanawashe Harare Bureau
Contractors have lent their support to the proposed Land Developers Bill saying the legislation will help clarify the roles of land developers, among other things.

The Land Developers Bill, expected in parliament soon is also expected to improve the doing business environment and reduce processes for permits for land development.

The permanent secretary for Local Government, Public Works and National Housing Ministry Engineer George Mlilo recently said the Bill has gone through Cabinet and is expected to be introduced in parliament soon.

The Zimbabwe Property Developers Association, the umbrella body for land developers, has been working with the Ministry of Local Government, Public Works and National Housing to regulate the roles of developers in the housing sector.

Ziproda secretary Francis Mugandani said the Bill will, among other things, safeguard depositors’ funds by setting up a trust account or a sinking fund where every developer would contribute funds to rescue developers in the event of challenges or default and ensure that beneficiaries still get their houses despite the developer’s challenges.

“We’re happy it (the Bill) is moving on. The Bill will also deal with the statutory factors in the sector. We want the process of acquiring land to be uniform and common throughout the country. We need a standard agreement of engagement with the various local authorities in the country,” said Mugandani.

He said the Bill will regulate the qualifications of land developers so that there is a smart delivery process to avoid having substandard projects being put on the market.

Ziproda is also looking at working with developers with regards tax issues.

“Most of the land developers aren’t aware of how to treat tax issues, VAT and other Zimra requirements. Over the years we’ve brought in Zimra to run workshops with our members so that they appreciate how tax is supposed to be treated and ensure compliance from the developers,” said Mugandani.

Currently, the land development sector is a free for all because there’s no legislation to define who qualifies to enter that market.

Banks, pension houses such as the National Social Security Authority, Fidelity Life Assurance, among others have entered the property development market.

“Because there’s no legal instrument that clarifies that, it’s a free entry industry and yet you can’t wake up tomorrow and start a bank. There has to be a regulatory framework for developers,” said Mugandani.

Ziproda works with local authorities countrywide and has a seat on the directors’ forum which comprises all local authorities where demand for housing is shared with the developers.