Rutendo Nyeve, Victoria Falls Reporter
THE Government has unveiled an ambitious housing drive aimed at breaking long-standing barriers to home ownership by recapitalising the Housing Guarantee Fund and the National Housing Fund, a move expected to unlock mortgage finance and accelerate the delivery of affordable homes.
At the heart of the strategy is the recapitalisation of the Housing Guarantee Fund and the National Housing Fund — twin interventions expected to unlock long-term mortgage finance, de-risk lenders and accelerate the delivery of affordable homes for low and middle-income earners.
For decades, rapid urbanisation, population growth and limited access to housing finance have combined to overwhelm formal housing delivery systems. Thousands of families have been pushed into informal settlements and overcrowded accommodation, while local authorities — burdened by weak balance sheets, ageing infrastructure and limited borrowing capacity — have struggled to service land. Financial institutions, meanwhile, have remained cautious, citing currency volatility, low household incomes and high lending risks.
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said the new approach marks a clear departure from incremental housing delivery towards a large-scale, finance-driven model that prioritises affordability, access and modern standards.
“Under NDS2, housing development will be a key national priority aimed at overcoming the national housing backlog of two million units, thereby ensuring access to affordable, decent and modern housing and social amenities such as water, sanitation, electricity, education and health facilities,” said Prof Ncube.
Through the recapitalised Housing Guarantee Fund, the Government will act as a guarantor for individuals seeking mortgages from banks and building societies — a move designed to reduce lending risk and expand access to housing finance for groups traditionally excluded due to stringent collateral requirements.
Complementing this is the revitalisation of the National Housing Fund, which will directly finance the construction of new housing units, particularly targeting low- and middle-income households. Authorities believe the fund will stimulate large-scale developments, reduce construction costs through economies of scale and ultimately improve affordability.
Beyond financing, the housing drive places strong emphasis on the regularisation of informal settlements and the provision of essential social services, aligning housing delivery with constitutional obligations on access to basic amenities.
The programme is also underpinned by sweeping legislative reforms aimed at modernising Zimbabwe’s housing framework. Prof Ncube said the Government will review and enforce updated building codes, land-use policies and housing regulations to improve safety, resilience and inclusivity.
Key laws earmarked for overhaul include the Housing and Buildings Act and the Housing Standards Control Act. Outdated instruments such as the Model Building By-Laws of 1977 and Building Codes of 1932 will be revised to accommodate modern construction technologies, environmental sustainability and climate-resilient designs.
In addition, Statutory Instrument 32 of 2007 on rent regulations will be reviewed to strengthen tenant protections and promote affordability, while the Zimbabwe National Human Settlements Policy will be enhanced to better manage rapid urbanisation.
To speed up housing delivery, approval processes will be streamlined under broader ease-of-doing-business reforms. Addressing chronic shortages of serviced land, NDS2 prioritises infrastructure provision through structured public-private partnerships (PPPs).
Under this framework, private developers will service land they own, while PPPs will be deployed on State or local authority land, with private investors funding infrastructure and recovering costs through stand sales under the oversight of local authorities.
“For State-owned or local authority land, a public-private partnership model will be employed, where a private investor funds the infrastructure and recoups the investment through the sale of stands, with local authorities providing crucial oversight and ensuring compliance with development standards,” said Prof Ncube.
Government has also stressed that no construction will proceed without approval of minimum development standards to safeguard quality and public safety.
Over the NDS2 period, Zimbabwe is targeting the delivery of one million houses and serviced stands in both urban and rural areas at an estimated cost of US$15 billion. Funding will be mobilised from a mix of fiscal resources, private-sector investment and long-term capital from insurance companies, pension funds and other financial institutions.
In a targeted intervention, the Public Service Pension Fund will be leveraged to expand housing facilities for civil servants, with plans to deliver 1 200 units during the strategy period.
While welcoming the initiative, rural and urban planning expert Dr Nicholas Muleya cautioned that strong regulation and monitoring would be critical, particularly where private developers are involved in joint ventures on State land.
“Developers must be strictly regulated to ensure they deliver fully serviced stands and houses. They must not be allowed to sell unserviced or partially serviced stands, as some abandon projects after people have paid their hard-earned cash,” he said.
Dr Muleya also urged the Government to support struggling local authorities, especially in areas where developers have defaulted, leaving residents in completed houses without sewer or water connections.
“If Government assists local authorities in such cases, developers must be held accountable for their failures. At the same time, a conducive environment should be created for responsible private players to contribute meaningfully to housing delivery,” he said.
The programme represents one of the most comprehensive attempts in recent years to align finance, regulation and private capital in tackling Zimbabwe’s prolonged housing shortage — with the Government betting that access to mortgages will finally turn policy promises into roofs over people’s heads.
The post Bold housing finance push to tackle two-million-unit deficit appeared first on herald.
The post Bold housing finance push to tackle two-million-unit deficit appeared first on Zimbabwe Situation.