HomeNewsFidelity seeks $21m for housing stands

Fidelity seeks $21m for housing stands

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Fidelity Life Assurance of Zimbabwe is in the process of scouting for $21 million to develop 5 000 high-density stands in Harare, as part of efforts to ease the housing backlog in the country.

The country’s housing backlog is estimated at over one million.

Fidelity Life managing director Simon Chapereka said the stands will be developed opposite Granville Cemetery along Masvingo Road over a 323 hectare piece of land.

“We are sourcing $21 million to construct roads, sewer and water reticulation systems. We still need to invite tenders and that will take about two months,” Chapereka said.

He could, however, not divulge whether the funds would be sourced locally or from outside the country.

“We don’t know yet when we will start servicing the stands, but that depends on how successful we are in accessing funding,” Chapereka said.

Last year, the company invested $5 million towards the development of 317 medium to low-density residential stands in Manresa Fidelity Park.

Fidelity recorded an increase of premium income of 53% to $11,7 million for the year ended December 2011 due to improved demand for individual life products in the year under review.

While premium income increased from $7,7 million the prior year, benefits, expenses and claims stood at $8,4 million from $5,8 million in 2010.

Meanwhile, Fidelity undertook a private placement in March this year to reduce its shareholding in Vanguard Life Assurance Malawi from 67% to 51%.

Chapereka said the subscription rate for the private placement was 85%.

“We are now looking at increasing Vanguard’s underwriting capacity given the change in the government,” he said.

“There are more business prospects in Malawi. We are looking at 20% contribution of Vanguard to the group, but we are still to see the impact of the devaluation of the kwacha.”

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