Shelter Afrique, a Housing Development Financier, has signed a US$11 million housing deal with Harare-based African Banking Corporation (BancABC).
BancABC is a subsidiary of ABC Holdings Limited (ABCH), a Botswana-incorporated company.
The facility will be used to construct some 2,500 residential housing units, provide mortgage facilities, make home improvements and lend to small scale housing projects.
Andrew Chimphondah, Shelter Afrique Group Managing Director and CEO, said this facility would address the housing backlog in Zimbabwe.
Figures indicate that Zimbabwe is facing an estimated housing shortfall of close to 1.5 million units.
Chimphondah said the US$11 million facility to BancABC reaffirms the firm’s commitment to addressing Zimbabwe’s housing crisis through the provision of affordable housing solutions for her citizens.
Shelter Afrique previous credit to BancABC
This will be the third and fourth facility to African Banking Corporation, having been granted previous credit lines such as the US$ 7 million loan in 2011 and US$5 million in 2013 by the housing financier.
Dr Lance Mambondiani, African Banking Corporation CEO, said the lender had enjoyed a long term partnership with Shelter Afrique for over a decade.
The 7-year facility, which includes a 20-months grace period, will be due for repayment in 2027.