BancABC signs US$11 million deal for the construction of 2,500 houses

BancABC has announced that it has signed a US$7 million deal with Shelter Afrique also known as The Company of Habitat and Housing in Africa.

Shelter Afrique is a pan African financial institution that supports the development of affordable housing and real estate in Africa. The organisation has partnerships with 44 African governments, the Africa Development Bank (AfDB) and the Africa Renaissance Corporation (Africa-Re).

This partnership with BancABC is one of two, the first was a US$4 million deal that was signed a few weeks ago. The two facilities combined will bring the total to US$11 million which will be used to fund the construction of 2,500 houses for low to middle-income earners.

“This credit line will assist in addressing the housing backlog in Zimbabwe, the extension  of this facility to BancABC reaffirms our commitment to providing affordable housing solutions for Africa”

Kuria Njinu, the Chief Legal Officer of Shelter Afrique

BancABC and Shelter Afrique’s deal comes at a time when the Ministry of Housing and Social Amenities has moved to reduce the national housing deficit. As I am sure you are all aware there has been a growing backlog for affordable housing in Zimbabwe. The official number is reportedly around 1.3 million houses with demand continuing to rise.

It’s also worth mentioning that this isn’t the first time that BancABC and Shelter Afrique have joined forces. Back in 2011 Shelter Afrique extended loans worth US$7 million for the construction of 150 houses. And in 2015, BancABC received a US$5 million line of credit which was used to finance importers and exporters of building materials.

“We are once again pleased to partner with Shelter Afrique on a project of such magnitude, because of the many lives it will impact. Our Corporate and Investment Banking team has been working on putting  this deal together and today we are proud to sign off on it”

Dr. Lance Mambondiani, BancABC CEO

The deal was signed on the occasion of Shelter Afrique’s 40th anniversary and to date, the institution has approved investments amounting to US$1.207 billion and it has completed over 17,000 projects with governments and banks across Africa.