Housing Finance in Zimbabwe

Overview

The population of Zimbabwe totaled 15 178 979 in 2022, with 48% of the population being male and 52% female.[1] However 40% of the population lives below the poverty line,[2] with 33.5% of the urban population living in informal settlements.[3] Given this context, affordable housing in Zimbabwe remains a challenge due to the high cost of serviced land, high costs of construction and building materials, inadequate government support, insufficient low-cost housing programmes, inflexible construction or lending policies and the high cost of borrowing. Furthermore, hyperinflation and foreign currency shortages in Zimbabwe have created economic instability and eroded real disposable incomes.[4] All transactions in land and housing development are usually denominated in US dollars. The demand for US dollars has placed immense pressure on the local exchange rate, further eroding disposable incomes for income earners. The mortgage market has been subdued in recent years and buyers prefer the use of cash to acquire or build houses.

Zimbabwe’s inflation rate remains high, but decreased slightly from 2021 to 106.3% in 2022.[5] The Reserve Bank of Zimbabwe suspended lending in May 2022 and then hiked lending rates to 80% and later to 200% to arrest speculative borrowing by economic agents. [6] The Reserve Bank introduced gold coins in July 2022 to curb inflation and for use by investors for use as value preservation and to ease demand for United States (US) dollars.[7]

The Global Climate Risk Index for 2021 ranks Zimbabwe among the world’s 10 most affected countries by climate change in 2019.[8] In the past three years, increased climatic variability has increased, marked by higher day-time and night-time average temperatures, an increase in intense rainfall interspaced by long dry spells, and late onset and early rains.[9] The devastation of Cyclone Idai during March 2019 affected more than 270 000 people, leaving 341 dead and missing – 17 608 households were destroyed, and health facilities, schools and infrastructure were damaged by landslides and floods. The government possesses a national disaster handling plan (under the Civil Protection Unit) to address disasters such as these, but has also since incorporated new recommendations in the National Human Settlements Policy to encourage Zimbabweans to move away from unsafe traditional building methods.[10] These include the recommended use of strict standards of planning and construction to cope with extreme weather such as strong winds, heavy rains, flash floods and landslides. These new standards are, however, mostly unaffordable.

[1] ZIMSTAT (2022). Zimbabwe Population and Housing Census Report. https://zimbabwe.opendataforafrica.org/anjlptc/2022-population-housing-census-preliminary (Accessed 21 August 2022).

[2] World Bank (2022). Country Overview – Zimbabwe. https://www.worldbank.org/en/country/zimbabwe/overview (Accessed 21 August 2022).

[3] Index Mundi. (2019). Zimbabwe – Population living in slums (% of urban population). Index Mundi. https://www.indexmundi.com/facts/zimbabwe/indicator/EN.POP.SLUM.UR.ZS (Accessed 27 August 2022).

[4] Chikono, M. (2022). Zim Crisis batters property market. The Independent. 5 August 2022. https://www.theindependent.co.zw/2022/08/05/zim-crisis-batters-property-market/. (Accessed 29 August 2022).

[5] New Zimbabwe (2022). Zimbabwe’s annual inflation down  to 106,3 % – says Zimstat. 27 August 2022. New Zimbabwe. https://www.newzimbabwe.com/zim-annual-inflation-rate-down-to-1063/ (accessed 29 August 2022).

[6] The Sunday Mail. Gold coin introduction to ease pressure on USD demand: Old Mutual. 11 August 2022. The Sunday Mail. https://www.sundaymail.co.zw/gold-coin-introduction-to-ease-pressure-on-usd-demand-old-mutual (Accessed 29 August 2022).

[7] The Sunday Mail. Gold coin introduction to ease pressure on USD demand: Old Mutual. 11 August 2022. The Sunday Mail. https://www.sundaymail.co.zw/gold-coin-introduction-to-ease-pressure-on-usd-demand-old-mutual (Accessed 29 August 2022).

[8] Moyo, A. (2022). Zimbabwe: Zim Speeds Up Green Buildings Adoption. 13 April 2022. The Herald. https://www.herald.co.zw/zim-speeds-up-green-buildings-adoption/ (Accessed 28 August 2022).

[9] Moyo, A. Zimbabwe: Zim Speeds Up Green Buildings Adoption. 13 April 2022. The Herald. https://www.herald.co.zw/zim-speeds-up-green-buildings-adoption/ (Accessed 28 August 2022).

[10] Mukeredzi, T. (2022). Hit hard by storms and forest loss, Zimbabwe builds stronger homes. PreventionWeb. 10 May 2022. https://www.preventionweb.net/news/hit-hard-storms-and-forest-loss-zimbabwe-builds-stronger-homes (Accessed 21 August 2022).

Access to Finance

Zimbabwe has a well‐developed financial sector and housing finance systems.[1] There are 16 housing financiers with 10 commercial banks, four building societies, one savings bank and one mortgage finance company. There were 3 849 mortgage borrowers, 291 of whom had borrowed money in US dollars.[2] This marks an 18% decline from the total of 4 679 borrowers in 2021. The mortgage portfolio in Zimbabwe was Z$13.5 billion (US$36.9 million), reflecting an increase in value from Z$1.3 billion (US$3.5 million) from 2021.[3] In general, loan values per application were larger due to inflation of the local currency. There is no recent report to advise on the number of women who possess mortgages or who use financial institutions in Zimbabwe. By December 2021 financial institutions provided Z$14.7 billion (US$40.1 million) in loans to women, almost five times the Z$3.2 billion (US$8.7 million) provided in the same period in 2020. In 2021the number of beneficiaries declined due to high inflation.[4]

There is no mortgage refinance company in Zimbabwe, and the practice of mortgage refinancing is still in its infancy, with traditional mortgage funders providing loans up to a maximum of 50% of the property value. The mortgage bond refinance market is virtually non-existent. Mortgage interest rates rose from between 40%-60% in April 2021 to 80% in April 2022[5] and later to 200% in July 2022.[6] The Reserve Bank suspended lending and later imposed interest rates hikes to block cheaper speculative borrowing which adversely affected exchange rates. Mortgage lenders do not possess data disaggregated by gender.

The average value of a mortgage loan as of July 2022 was Z$3 509 093 (US$9 580) for a period of between five and 10 years, while the maximum acceptable loan-to-value ratio is 75%.[7] There appears to be no deliberate strategy to lend specifically to women as current conditions are not conducive for mortgage lending in general. Although the Reserve Bank has encouraged all banks to provide separate reports on financial inclusion, lenders need to consciously increase the availability of mortgages to women and report on this separately. As of 31 March 2022, 60.01% of the microfinance loan portfolio was for productive purposes, while approximately 39.99% was for consumptive purposes.[8] Microfinance lending institutions have not yet disaggregated reports to show borrowings towards housing. To encourage financial inclusion the government sponsored the opening of a gender-sensitive banking institution, the Women’s Microfinance Bank, in 2021

Non-performing loans amounted to Z$126 million (US$ 344 010) for 119 accounts for July 2022 compared to Z$79 million (US$ 215 689) for 206 in June 2020.[9] Adverse economic conditions aided by steep interest hikes have led to an increase in the value for non-performing loans in 2022, although the number of accounts were fewer. Forty accounts were listed as under-foreclosure in 2022  (down from 41 in 2021), while two properties were sold in execution for both periods.²⁰ African Union for Housing Finance (AUHF) members in Zimbabwe are the traditional mortgage financiers, and this has contributed to affordable housing through the provision of serviced land as well as multiple-roomed apartments.

There is one formal non-banking mortgage finance company offering mortgage finance, although Covid-19 has generally decreased financial services of non-banking institutions. As of 31 March 2022, there were 187 registered microfinance institutions, made up of 179 credit-only institutions and eight deposit-taking institutions. Clients who accessed loans from the microfinance sector decreased to 288 135 as at 31 March 2022 from 314 745 at 31 December 2021.[10] Financial inclusion indicators relating to gender reflect a stable trend in the proportion of loans granted to women, at 42.2% as at 31 March 2022, which is a marginal decline from 44.2% as at 31 December 2021.[11] Microfinance institutions increased the average loan value to female borrowers by 31%  and the average loan size of women borrowers ranged from Z$18 904 (US$52) to Z$24 857 (US$68).[12] Microfinance institutions are mandated to report on their financial inclusion activities by the Reserve Bank, hence there is a deliberate strategic intent to offer their products to women.

There are two credit bureaus in Zimbabwe. The Reserve Bank runs the main credit reference platform and is accessible to all registered lenders.[13] Loan underwriting practices in most banks still do not accommodate informal income sources, while microfinance lenders are specifically geared to provide security to this type of customer. Women cannot access loans without seeking the consent of a male member of their family, unless they have declared that they are married in community of property. Male mortgage loan applicants are also required by law to provide proof that their partner consents to borrowing.

Construction finance is available from all mortgage lenders on a progressive disbursement basis after meeting specific loan contract requirements.[14] Housing financiers use own their credit power to access funding from local and international partners including Shelter Afrique. In August 2021, Shelter Afrique extended a Z$9 047 US$25 million line of credit for the provision of low cost housing in Zimbabwe through the support of three institutions, for the construction of five thousand low-cost houses under the government’s National Development Strategy 1.[15] Financial markets in Zimbabwe are still not at a level to provide a secure bond market, although in the past the government used to provide affordable funding to housing developers and lenders through the Infrastructure Development Bank of Zimbabwe (IDBZ). The parastatal has a mandate to raise capital for infrastructure development by raising funds through floating bonds. The projects are not necessarily housing related but include any project of national significance.

[1] Kamete, A.Y. (2001) The quest for affordable urban housing: A study of approaches and results in Harare, Zimbabwe. Development Southern Africa 18:1, pages 31-44. (Accessed 22 August 2022).

[2] Zimbabwe Association of Housing Financiers (2022). Property Market and Housing Finance Up-date July 2021. Unpublished. Pg. 1.

[3] Zimbabwe Association of Housing Financiers. (2022). Property Market and Housing Finance Up-date July 2021. Unpublished. Pg. 1.

[4] Reserve Bank of Zimbabwe. 2022. Financial Inclusion Quarterly Report. March 2022. https://www.rbz.co.zw/index.php/financial-markets/nps/38-qir-banking-sector/1083-quarterly-banking-sector-report-march-2022 (Accessed 24 August 2022).

[5] Ndlovu, R. (2022). Zimbabwe Keeps World’s Highest Interest Rate; Raises It to 80%. Bloomberg. 4 April 2022. https://www.bloomberg.com/news/articles/2022-04-04/zimbabwe-keeps-world-s-highest-interest-rate-raises-it-to-80 (Accessed 28 August 2022).

[6] Ndlovu, R and Marawanyika, G. (2022). World’s Most Aggressive Central Bank Raises Key Rate to 200%. Bloomberg. 27 July 2022. https://www.bloomberg.com/news/articles/2022-06-27/world-s-most-aggressive-central-bank-raises-key-rate-to-200#xj4y7vzkg (Accessed 28 August 2022).

[7] Zimbabwe Association of Housing Financiers. (2022). Property Market and Housing Finance Up-date July 2021. Pg. 1. Unpublished.

[8] Reserve Bank of Zimbabwe. Microfinance Quarterly Report as of 31 March 2022. www.rbz.co.zw (Accessed 27 August 2022). Pg. 15.

[9] Zimbabwe Association of Housing Financiers. (2022). Property Market and Housing Finance Up-date July 2021. Pg. 1. Unpublished.

[10] Reserve Bank of Zimbabwe. Microfinance Quarterly Report as of 31 March 2022. www.rbz.co.zw (Accessed 27 August 2022) Pg. 3.

[11] Reserve Bank of Zimbabwe. Microfinance Quarterly Report as of 31 March 2022. www.rbz.co.zw (Accessed 27 August 2022) Pg. 3.

[12] Reserve Bank of Zimbabwe. Microfinance Quarterly Report as of 31 March 2022. www.rbz.co.zw (Accessed 27 August 2022) Pg.3.

[13] Interview with O. Mafumbate. POSB. 20 August 2022. POSB Mortgage Centre Causeway, Harare.

[14] Interview with N. Bonzo. ZB Bank. 20 August 2022. ZB Bank HQ 1 Natal Road, Avondale, Harare.

[15] Construction Review Online. (2022). US$25m credit line for construction of Zimbabwe low-cost housing. 14 August 2022. https://constructionreviewonline.com/news/zimbabwe/us-25m-credit-line-for-construction-of-zimbabwe-low-cost-housing/ (Accessed 27 August 2022).

Affordability

3.3 million people were listed as employed in 2022 with an unemployment rate of 19%.[1] Trade unionists have disputed the employment figure as being too low, but ZIMSTAT has argued that the percentage is correct since around 85% of those deemed “employed” are located in the informal sector. [2]  Most of the working population are civil servants who earn around Z$36 000 (US$98) per month. This means that even well-paid civil servants barely have enough for household subsistence, let alone property rentals or mortgage repayments.  The government includes a supporting allowance of between Z$25 333 and Z$63 332 (US$70 and US$175) a month and helps pay school fees for civil servants’ children.[3] The average mortgage loan in July 2022 was Z$3 509 093 (US$ 9 581), and the tenure is between five and 10 years[4]. The monthly repayment of Z$584 905 (US$ 1 597) is still way above the capacity of formally potential mortgage earners.

Land servicing costs amounted to Z$8 500/m² (US$23/m²) and on average the cost of construction in Zimbabwe per m² is between Z$29 830 and Z$44 745 (US$81 and US$122).[5] A simple two- roomed cottage building costs around Z$2 344 120 (US$6 400), a three-roomed house Z$4 688 239 (US$12 800), and a four-roomed unit Z$5 274 269 (US$14 400). Rentals in high-density suburbs of Harare such as Mbare, Highfields and Budiriro average between Z$18 095 and Z$25 333 (US$50 to US$70) a room.[6] Rentals is mostly payable in US dollars or in local currency, the latter using parallel market rates at almost double the Reserve Bank rate.

[1] ZIMSTAT (2022). Zimbabwe Population and Housing Census Report. https://zimbabwe.opendataforafrica.org/anjlptc/2022-population-housing-census-preliminary (Accessed 21 August 2022).

[2] ZIMSTAT (2022). Zimbabwe Population and Housing Census Report. https://zimbabwe.opendataforafrica.org/anjlptc/2022-population-housing-census-preliminary (Accessed 21 August 2022).

[3] Machivenyika, F (2022). Zimbabwe: Salary Review Joy for Civil Servants. The Herald. 28 June 2022. https://allafrica.com/stories/202206280364.html (Accessed 30 August 2022).

[4] Zimbabwe Association of Housing Financiers (2022). Property Market and Housing Finance Up-date July 2021. Unpublished. Pg. 1.

[5] Palmer Contractors. (2022). Cost Estimations. July 2022. https://palmer.co.zw/civil/cost-estimations/ (Accessed 20 August 2022).

[6] Interview Takudzwa Warikandwa, a resident of Highfields. 20 August 2022. Highfields Township Harare.

Housing Supply

58.6% of occupants own the properties they occupy and 22.4% are tenants, while the rest of the population have special accommodation arrangements.[1] Approximately 83% of Zimbabweans live in modern houses and 16% in traditional dwellings,[2] Modern dwelling units include detached, semi-detached, mixed, flats/townhouses and clustered dwelling units while traditional dwelling units are old-style family buildings made of poles and mud brick. [3] The average household consists of four people.[4]

The housing backlog for state-initiated housing is at least 1.5 million units countrywide. [5] To deal with this backlog, the government has identified several sites where 324 blocks for civil servants are to be constructed, yielding a cumulative 5 184 units for emergency settlements at a total cost of Z$140.6 billion (approximately US$384 million).[6] Construction commenced in July 2022.[7] Zimbabwe is also adopting alternative construction methods such as the use of polystyrene.[8] An agreement amounting to Z$23.5 billion (US$64 million) from Shelter Afrique to construct green buildings has also been initiated to reduce the housing backlog.[9] The relaxation of building by-laws to accommodate cheaper and modern construction technologies was announced in 2013[10] but will only be implemented in 2022.¹³ The IDBZ has partnered with various urban councils to service and build houses across the country.

The high cost of urban land remains a stumbling block for affordable housing. The smallest stand size is 100m² [11] and at the price of Z$8 500/m² (US$23/m²), one parcel of land costs Z$850 000 (US$2 300) and sells for at least Z$1 639 370 (roughly US$5 000). This translates into a monthly mortgage repayment of Z$273 228 (US$746). The cost of building materials is also high when compared to other countries in the region: one 50kg bag of cement costs between Z$3 619 and Z$5 066 (US$10 and US$14) compared to Z$1 809 (US$5) in Zambia.[12] Building materials like cement, bricks, timber, sand, stone and iron are mostly available in local hardware and stores. There is concern that some building materials such as wood-fired clay bricks could cause land degradation, deforestation and high carbon emissions, which has prompted local councils like Bulawayo City to embrace the hydraform technique, which uses interlocking soil cement blocks with limited use of mortar.[13]

The unaffordability of these formal housing systems has led to the mushrooming of land barons who typically trade land for informal occupation within unplanned urban settlements.[14] In many cases, informal settlements have no access to social amenities and infrastructure. Housing production therefore largely relies on the self-build housing initiative of the poor, where property developers will provide stands while the buyer is expected to build a home, mostly with no supporting subsidies. Urban councils in Zimbabwe maintain a strong stance against informal settlements, as attested by the latest demolitions in Chitungwiza.[15] There is however evidence of renewed efforts to regularise and upgrade informal settlements where possible.

Formal housing supply in contrast is dominated by the private sector which seeks large profit margins, making housing well beyond the reach of many. The government has therefore altered the policy model of housing delivery from “house ownership” to the provision of “decent accommodation”. This prescribes that settlement planners should reserve 40% of residential land for apartments, or high-rise flats[16], which promotes vertical expansion and increases access to cheap rental accommodation options as opposed to ownership.[17]

[1] ZIMSTAT (2022). Zimbabwe Population and Housing Census Report. https://zimbabwe.opendataforafrica.org/anjlptc/2022-population-housing-census-preliminary (Accessed 21 August 2022).

[2] New Ziana (2022). Majority of Zimbabweans own modern Houses: Zimstat. New Ziana. https://newziana.co.zw/2022/08/10/majority-of-zimbabweans-own-modern-houses-zimstat/ (accessed 29 August 2022).

[3] New Ziana (2022). Majority of Zimbabweans own modern Houses: Zimstat. New Ziana. https://newziana.co.zw/2022/08/10/majority-of-zimbabweans-own-modern-houses-zimstat/ (Accessed 29 August 2022).

[4] ZIMSTAT (2022). Zimbabwe Population and Housing Census Report. https://zimbabwe.opendataforafrica.org/anjlptc/2022-population-housing-census-preliminary (Accessed 21 August 2022).

[5] Rusike, T. (2022). We will speed up housing delivery. Sunday Mail. 22 May 2022. https://www.sundaymail.co.zw/we-will-speed-up-housing-delivery (Accessed 29 August 2022)

[6] Voice of Africa News (2022). Zimbabwean Government Announces Affordable Housing Deal. 21 February 2022. Voice of Africa News. https://www.voanews.com/a/zimbabwean-government-announces-affordable-housing-deal-/6452698.html (Accessed 21 July 2022).

[7] The Herald (2022). Construction of Civil servants’ flats takes shape. 7 July 2022. https://www.herald.co.zw/construction-of-civil-servants-flats-takes-shape/ (Accessed 21 July 2022).

[8] The Herald (2022). Zim builds ecofriendly demo house. 23 August 2022. https://www.herald.co.zw/zim-builds-eco-friendly-demo-house/ (Accessed 24 August 2022).

[9] The Herald (2022). US$63million for construction of  eco-friendly houses availed. 24 August 2022. https://www.herald.co.zw/us63-million-for-construction-of-eco-friendly-houses-availed/ (Accessed 24 August 2022).

[10] The Herald (2013). Harare relaxes building bylaws. 27 May 2013. https://www.herald.co.zw/harare-relaxes-building-by-laws/ (Accessed 21 July 2022).

[11] Interviews with Mr Mutarisi, Mr Mutema and Mr Banda,  all from different real estate companies,  22 August 2022.

[12] Mavhunga, C. (2022). Zimbabwean Government Announces Affordable Housing Deal. Voice of Africa News. 22 February 2022. https://www.voanews.com/a/zimbabwean-government-announces-affordable-housing-deal-/6452698.html. (Accessed 29 August 2022).

[13] Ndlovu, P. (2015). Tackling housing crisis, the hydraform way. The Chronicle. 10 December 2015. https://www.chronicle.co.zw/tackling-the-housing-crisis-the-hydraform-way/ (Accessed 10 September 2022)

[14] Matsika, B. (2022). Playing the housing backlog theme. The Independent. 1 July 2022.  https://www.theindependent.co.zw/2022/07/01/playing-the-housing-backlog-theme/ (Accessed 29 August).

[15] ZIM Eye (2022). Chitungwiza Municipality Demolishes Illegal Structures. Zim Eye. https://www.zimeye.net/2022/08/16/chitungwiza-municipality-demolishes-illegal-structures/ (accessed 16 August 2022).

[16] Government of Zimbabwe (2017). Zimbabwe National Human Settlements Policy. Harare.

[17] Mavhunga, C. (2022). Zimbabwean Government Announces Affordable Housing Deal. Voice of Africa News. https://www.voanews.com/a/zimbabwean-government-announces-affordable-housing-deal-/6452698.html (Accessed 29 August 2022)

Property Markets

The real estate market in Zimbabwe is experiencing growth as people have realised the importance of property investment. This has created a huge demand in the housing market to the extent that demand often outperforms supply.[1] Real estate transactions are dampened by the fact that sellers usually dictate the price and currency of housing due to low housing stock, which results in exorbitant prices.[2] There have also been allegations of financial abuse within lending facilities to manipulate the exchange rate. The government thus recently increased the lending rate to 200% to discourage borrowing.[3] There is generally an increased uptake of residential cluster units, and the market has responded by increasing the availability of such housing types. However, house prices have remained high and are out of the reach of ordinary citizens. The cheapest house built in a high-density urban area costs up to Z$20 million (US$55 000), which is unaffordable. The rental price for such a house is approximately Z$200 000 (US$550).

The rental market has suffered from a lack of good and well-priced properties[4] as prices have been increasing beyond the reach of most citizens. There is a shortage of rental units in market-preferred localities and the demand for rental accommodation far outstrips available supply, leading to rental increases. Properties within a comfortable budget range are rarely available as they are rented out as soon as they become vacant.

There are no credible and comprehensive databases relating to land registration, title deeds, or for gender-disaggregated information. The Deeds Registry of Zimbabwe is responsible for the registration and management of the property register, but is yet to be digitised for easy storage and access to data. The time required to register a property in Zimbabwe is 29 days, has five procedures and costs approximately 7.3% of property value.[5] Laws in Zimbabwe do not formally discriminate against women holding title to property, and the major challenge lies in the lack of opportunities available to women to secure finance for building or purchase. The government has made strides towards female empowerment by boosting the economic and political means for women to acquire and own the means of production, including land.

[1] Muchenje, K. (2022). Property Market Zimbabwe First Quarter 2022.  https://zimbabwe.seeff.com/news/property-market-zimbabwe-first-quarter-2022/ (Accessed 29 August 2022).

[2] Muchenje, K. (2022). Property Market Zimbabwe First Quarter 2022. https://zimbabwe.seeff.com/news/property-market-zimbabwe-first-quarter-2022/  (Accessed 29 August 2022).

[3]  Zimbabwe Association of Housing Financiers April 2022 Report.

[4] Muchenje, K. (2022). Property Market Zimbabwe First Quarter 2022. https://zimbabwe.seeff.com/news/property-market-zimbabwe-first-quarter-2022/ (Accessed 29 August 2022).

[5] World Bank (2022). Economy Profile of Zimbabwe. Doing Business in 2020.

https://archive.doingbusiness.org/content/dam/doingBusiness/country/z/zimbabwe/ZWE.pdf (Accessed 29 August 2022).

Policy and Legislation

The Environmental Management Act (Chapter 20:27) prescribes measures to protect the environment, including the need for an Environmental Impact Assessment Report prior to development. The Deeds Registries Act (Chapter 20:05) governs the registration and transfer of ownership. The Finance Act (Chapter 23:04), the Stamp Duties Act (Chapter 23:01) and the Capital Gains Tax Act (Chapter 23:01) cover the various taxes payable when acquiring or disposing of property. The Land Survey Act (Chapter 20:12) deals with title surveys that enable the registration of a real estate property. The Urban Councils Act (Chapter 29:15) and Rural District Councils Act (Chapter 29:13) are critical in specifying the roles and responsibilities of the governors and the populace in rural areas, and for identifying, planning and managing land for housing. These are all part of the institutional framework that determines the environment for housing delivery in Zimbabwe. The efficient administration and continuous realignment of these laws has a positive impact on housing delivery, defined through the role of national and local government. There has been a conscious effort by the state to improve the ease of doing business through key sector reforms. For example, the Regional Town and Country Planning Act (Chapter 29:12) is undergoing reform to improve relevance in determining urban residential needs, which will create a more conducive environment for housing development.

The 2018 National Human Settlements Policy sets a framework for the general development of affordable housing and sustainable human settlements. The government also directly supports affordable housing delivery through funding construction. In the 2022 National Budget the government committed to continue supporting housing development and to work with the private sector.[1] These measures prioritise the delivery of affordable, fully serviced housing stands, construction of housing units, including institutional accommodation, and attempts to regularise and upgrade informal settlements.

There are no deliberate housing policies that target the women in Zimbabwe, although property laws do not overtly discriminate against women in accessing housing opportunities.

[1] Government of Zimbabwe. (2021). Budget Strategy Paper. Pg. 42. http://veritaszim.net/sites/veritas_d/files/2022%20BUDGET%20STRATEGY%20PAPER%20FINAL_27%20JULY%202021.pdf (Accessed 29 August 2022).

 

Opportunities

The government welcomes partnerships for constructing affordable housing through build-operate-transfer mechanisms, which involve investor-built houses at affordable rental or flexible purchase terms. There is already a long waiting list for people within this particular sector.

There is some scope to introduce green building concepts in Zimbabwe. Newer technologies using steel, concrete, polystrene, hydraform technique, rammed earth bricks and solar power are available to help improve standards for affordable housing. Current building technologies are predominantly brick and mortar and often follow strict standards, which can discourage to low income groups. Conventional construction funding models for housing now find competition with players such as Palmer Construction, Laperch Construction and Vaka Building Suppliers and Hardware, which offer construction materials and contractor services on credit. These credit arrangements are flexible enough to allow for incremental construction. Formal lenders have yet to learn from these methods which are more flexible and commonly used by those who seek to fund construction of the traditional rural village home, or musha.

Security of tenure issue is a problem for many rural properties because owners do not often have formal title, which limits access to funding. Many microfinance institutions have therefore opted to use digital payment platforms to create credit histories for the informally employed. The potential exists for financial technology companies (FinTechs) to take advantage of this to create a database for credit references, that can be used by lenders, using available data on construction material purchases or contractor records.

The government’s efforts to decentralise commercial activities away from main urban centres and the creation of Special Economic Zones on the outskirts of cities, provides opportunities for the expansion of housing construction in the short to medium term, particularly as targeted areas tend to become more urban. Investors could target areas such as Muzarabani[1]  and Chivhu[2] where new mining developments are taking place, and could produce lowincome housing for these areas which are poised to become economic hubs in a few years.

[1] Chingono, N. (2022). Invictus Energy expects to drill first Zimbabwean exploration well in coming weeks. CNBC Africa. 22 August 2022. https://www.cnbcafrica.com/2022/invictus-energy-expects-to-drill-first-zimbabwe-exploration-well-in-coming-weeks/ (Accessed 28 August 2022).

[2] The Chronicle. 92021) Chinese firm to build world class iron and steel plant in Zimbabwe. 3 August 2021. https://www.chronicle.co.zw/chinese-firm-to-build-world-class-iron-and-steel-plant-in-zim/ (Accessed 22 August 2021).

Availability of Data on Housing Finance

Population statistics are readily available from the ZIMSTAT. Statistical updates are informed by household surveys conducted every two to five years, although the most recent census of 2022 has been delayed due to COVID-19.

While data on mortgages can be obtained from Zimbabwe Association of Housing Financiers, the information is exclusive to member organisations and the government. However, not all banks authorised to provide mortgages are members of this organisation, and these institutions are not included in the report. Data is updated monthly.

Data on microfinance institutions, exchange rates, inflation and economic performance can be obtained from the Reserve Bank of Zimbabwe website. The information is updated weekly, monthly and quarterly depending on the area of interest and practicality.

For national housing programmes and policies, data can be obtained from the Ministry of National Housing and Social Amenities portal. The portal contains all government construction project updates and historical information on partnership agreements.

The Estate Agents Council of Zimbabwe maintains a register of the realtors and disseminates up-to-date information of a regulatory nature about the sector. Updates are made quarterly.

The Urban Councils Association of Zimbabwe the Association of Rural District Councils of Zimbabwe report on broader regional development goals and projects. Updates do not show much information about housing development and are mainly concerned with regulatory issues and compliancy.

Green Applications for Affordable Housing

New green initiatives include the Green Buildings Council of Zimbabwe (GBCZ), which is mandated to coordinate efforts for a green housing plan and associated pilot projects through three state institutions: the Environment, Climate, Tourism and Hospitality Ministry; the Ministry of National Housing and Social Amenities; and Local Government and Public Works. Since its inception, the GBCZ has developed a local context report for the adoption of green-star building ratings and certification systems.[1] However, despite these efforts, the activities of the GBCZ are still not visible. The concept is largely still in a planning stage as green building standards are still in development.[2] Only a few buildings can be categorised as a green build, especially in residential properties.[3] The Eastgate Mall in Harare is one recent example of a green building as the mall uses natural temperature control, but Zimbabwe currently does not have an institutional framework that governs green building, and the GBCZ has no legal mandate to assist in capacity building for the adoption of the concept as it is a voluntary organisation. Other challenges include lack of political will, lack of expertise, poverty, weak policy environment, and reluctance to adapt to innovation through preference of conventional building methods.[4]

Zimbabwe’s electrical power is generated by coal and hydropower with solar energy planned to supplement. Recent census reports state that at least 68.9% households have access to electricity, but only 53.9% are connected to the national grid – the remainder use alternative power sources such as  solar.[5] Around 96.1% of the population have access to clean drinking water, with more than 68% relying on groundwater as their primary source of water.[6] Both clean water and power sources can be adversely affected by harsh weather conditions and are therefore  targeted for green development to foster sustainability.

[1] Moyo, A. (2022). Zimbabwe: Zim Speeds Up Green Buildings Adoption. The Herald. 13 April 2022. https://allafrica.com/stories/202204130433.html (Accessed 28 August 2022).

[2] Ryan Chigoche, R. (2022). Govt crafts green building standards. Business Times. 14 April 2022. https://businesstimes.co.zw/govt-crafts-green-building-standards/ (Accessed 10 September 2022)

[3] Tanyanyiwa, V.I. and Juba, O.S. (2018). Green buildings and water management in Harare,

Zimbabwe. Journal of Urban Planning, Landscape & environmental Design, 3(2), 83-92. Pg. 88

[4] Kibert, C.J. (2016). Sustainable construction: green building design and delivery. Hoboken, US: John Wiley & Sons.

[5] Sengere, L. (2012). 46% of Zimbabwean electricity users have solar as main source. 29 September 2021. Techzim. https://www.techzim.co.zw/2021/09/46-zimbabwe-electricity-users-use-solar-as-main-source/ (Accessed 10 September 2022).

[6] World Vision International. (2022). World water day 2022: Making the invisible visible in Zimbabwe. 28 March 2022. https://www.wvi.org/stories/zimbabwe/world-water-day-2022-making-invisible-visible-zimbabwe (Accessed 10 September 2022).

Websites

CABS: https://www.cabs.co.zw

Estate Agents Council: https://eac.co.zw

FBC Building Society: https://www.fbc.co.zw

Homelink Limited: https://www.homelink.co.zw

National Building Society: http://nbs.co.zw

Reserve Bank of Zimbabwe: https://www.rbz.co.zw

Urban Development Corporation: https://udcorp.co.zw

ZB Bank Limited: https://www.zb.co.zw

Zimbabwe National Statistics Agency: http://www.zimstat.co.zw

Zimbabwe Association of Housing Financiers: http://www.zahf.co.zw.

Urban Councils Association of Zimbabwe (UCAZ) https://ucaz.org.zw

Association of Rural District Councils of Zimbabwe (ARDCZ)  https://ardcz.org.zw/

Ministry of National Housing and Social Amenities http://www.nationalhousing.gov.zw/