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NewsDay

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Lafarge launches $1,8m housing project

Business
Lafarge Cement yesterday launched a $1,8 million housing project in Adelaide Park in Epworth, which is expected to benefit a substantial number of its employees.

Lafarge Cement yesterday launched a $1,8 million housing project in Adelaide Park in Epworth, which is expected to benefit a substantial number of its employees.

BY VICTORIA MTOMBA

Vice-President Emmerson Mnangagwa cuts a ribbon on a door of a finished house, as he officially launched the $1,8 million Lafarge Zimbabwe housing project for their employees at Adelaide Park near Epworth yesterday. The scheme is being done in partnership with the National Building Society and Shelter Zimbabwe.
Vice-President Emmerson Mnangagwa cuts a ribbon on a door of a finished house, as he officially launched the $1,8 million Lafarge Zimbabwe housing project for their employees at Adelaide Park near Epworth yesterday. The scheme is being done in partnership with the National Building Society and Shelter Zimbabwe.

Speaking on the sidelines of the launch, Lafarge Cement chief executive officer, Amal Tantawi said the project was formulated two years ago, but it has been difficult to secure support from financial institutions.

“All commercial banks were not interested and the interest rates were also not feasible. We contacted them (National Building Society) in August this year and they were quick. This is the first phase of our project. We will have many more projects. It’s a learning process,” she said.

Tantawi said 85 houses would be constructed under phase one and these would be ready for occupation in February next year. She said the company had 280 permanent employees and most of them wanted to benefit from the housing project, adding Lafarge had contributed to the success of the project by providing affordable materials for the construction of the houses. The launch was a combined effort of Lafarge, National Building Society and Shelter Zimbabwe. Commissioning the project, Vice-President Emmerson Mnangagwa said it was encouraging that NBS was running at full throttle in facilitating housing delivery, though it was formed only four months ago.

“The commissioning of this initiative today is unassailable proof of the fact that public-private partnerships (PPPs) have the potential to be engines for economic development, not only in housing delivery, but across the socio-economic spectrum, as they help unlock value and forge strategic alliances that are critical for the sustainable economic recovery of the country,” he said. Mnangagwa said the involvement of Lafarge Cement, Shelter Zimbabwe and Epworth Local Board demonstrated the vast potential and proven efficacy of PPPs.

NBS managing director Ken Chitando said the organisation had both completed and semi-finished units, which allows the families to finish the houses at their own time. Beneficiaries were getting 20-year mortgages at an interest rate of 9,5%. He said the society would embark on more projects countrywide and open new branches in Chinhoyi and Bindura, in addition to setting up agent banking services.

Access to mortgage in the country is difficult as one is required to have 25% deposit, while most people do not qualify for mortgage loans, as their salaries are low. The country has a housing backlog of 1,25 million and government is working towards providing 50 000 stands annually.