HomePropertyCifoz mulls multi-million mortgage bond

Cifoz mulls multi-million mortgage bond

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The construction industry on Wednesday said it was working round the clock to launch a multi-million mortgage bond to revive the sector, which has endured a depressed spell since the turn of the decade.

The bond will be unveiled “soon”, according to Phillip Chiyangwa, the president of Construction Industry Federation of Zimbabwe (Cifoz).

“We must have a mortgage bond to fund construction development in the country.

An economy without cranes means it’s not growing at all,” Chiyangwa said.

“We want to create a vehicle that can enable us as the construction industry to recover and contribute to the recovery of the economy.

Currently are no significant bonds in the market and one is required to pay 40% deposit to secure (mortgage) a bond from financial institutions in the country.”

Chiyangwa said Cifoz on Tuesday approached 21 banking institutions in the country with the proposal.

The banks include TN Bank, Tetrad, Interfin Bank, BancABC and FBC.

He said the mortgage bond would constitute funds from the National Employment Council and Construction Industry Pension Fund as well as money from properties owned by the construction sector in the country.

The value of the construction sector assets is currently estimated at $50 million and its pension fund receives at least $1 million dollars every month in subscriptions.

The proposed bond would be used to construct houses, schools and roads countrywide.

Chiyangwa added that the construction industry is also open to technical partners who may be willing to farm in with more resources.

The construction sector has not had a large project since 2000 and recent ones have been awarded to foreign contractors, perpetuating the crisis.

“The construction industry has not been growing and graphs are indicative of the activity in the construction sector,” Chiyangwa said.

“The construction industry has been supporting other sectors in the economy to grow while it remains low on the graphs.”

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