ZNBS recapitalisation timely
Published On February 8, 2014 » 4417 Views» By Davies M.M Chanda » Features
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Beyond the news - KundaAT Independence in 1964, Zambia’s human population averaged just below three million people residing across 752,000 square kilometres of land.
Fifty years down the line, the country’s population has increased to more than thirteen million people and this is likely to double over the coming twenty or so years according to researchers.
The overwhelming population growth that Africa’s leading copper producer has experienced over the last five decades has resulted in the scarcity of certain essential needs for life such as access to own property in form of accommodation.
Approximately 1.3 million people in Zambia are living without permanent accommodation, meaning that some individuals live on the streets or in make-shift slums still unconducive for human habitation.
Many more people even lack assets in form of land where property such as own housing can be developed.
So the announcement by President Michael Sata that Government will this year recapitalise the Zambia National Building Society (ZNBS) with K167 million could not have come at a better time.
This is a well timed development more so that people are grappling with lack of accommodation to the extent of spending nights on the streets.
ZNBS annually provides a reasonable mortgage portfolio and as at the end of last year, the firm had increased its credit facility by K44.5 million, from K60.9 million in 2012 to K105 million in 2013.
These funds were disbursed to 377 accounts, bringing the total number of accounts serviced to 1,236 throughout last year.
The investment strategy announced by President Sata through on his Facebook page a week ago will go a long way to boost the ZNBS coffers.
It is also gratifying to hear that ZNBS will target middle-income families who earn K2, 000 or more per month to access mortgages between K50,000 and K700,000.
Government needs to expedite the decentralisation of ZNBS offices to other parts of the country so that people in rural areas can quickly begin to access these funds.
ZNBS has committed K5.3 million towards the refurbishment of its branch in Kabwe while a similar centre is already operational in Kapiri Mposhi.
I would also suggest that a sensitisation committee be established to educate our parents, brothers and sisters in the areas beyond the line of rail how to invest this money in property.
Every member of the Zambian public should have access to these funds either to renovate, purchase and or build property.
Scarcity of housing has led to expensive accommodation as for instance; a decent house in a residential area of Lusaka accrues rentals of not less than K2, 000 per month.
Therefore, recapitalising ZNBS will provide affordable finance to Zambians for the construction of their own houses.
This should also move in line with the availability of affordable land both in rural and urban areas.
It is good that Government has recognised the need to modernise the system used to issue land as previously, Zambians have been deprived of such property to build any structure.
Allocating more funds towards housing development will also contribute urbanisation as cities and towns across the country will carry the status of “capital city”.
In this regard, Government should hasten to revise and implement the National Urbanisation Policy as well as the National Housing Policy.
These two policies will be essential to ensuring that projects to put up infrastructure by organisations under the Public Private Partnership (PPP) are completed on time.
Government has already secured a K500 million municipal bond for the Lusaka City Council to oversee the establishment of 3,500 housing units in the district.
A similar project is under the microscope in Ndola where the city council will oversee the planned construction of 2,000 housing units at a cost of several millions of dollars.
All these and more are achievable. What is required is to ensure that those tasked with such a responsibility have the know-how and expertise to execute the projects on time.
Another issue that has contributed to limited house and property ownership among the Zambian public is the high interest rates form lending institutions.
I correctly recall how Vice President Guy Scott narrated his own personal experience from a named lending institution two similar branches in Zambia and the United Kingdom.
The institution abroad financed Dr Scott’s post graduate studies at an interest rate which when such a service was acquired in Zambia, one would have to service the mortgage over a period of ten years.
Banks and other lending institutions have a mandate to service the general public with affordable services and the current interest rates for mortgages are just too exorbitant.
The Bank of Zambia should address this as matter of urgency in 2014 so that people especially those in the middle and low income brackets can have access to loan facilities.
Transparency is also key to the growth and implementation of the of the urbanisation projects in Zambia.
This has been a challenge over the years especially where the issuance of land from the local authority is concerned.
It is unfortunate to hear of how ten people have the same deed of title for a certain piece of land or how one person can have more than five plots to their name.
This should come to an end. Government has made a few policy changes towards the issuance of customary land and this is a step in the right direction.
Even as ZNBS is recapitalised now, management at the firm should ensure that everyone is given the opportunity to access a mortgage in accordance with their payment capability.
Members of the public should not take pronouncement such as the one by Mr Sata as mere good will.
The Head of State is laying a foundation for those living today to leave a property that the generations ahead could inherit to enhance their survival.
I urge members of the public to utilise these mortgages prudently.
All in all; Access to adequate housing property is an essential human right and it must be upheld in a country that has been democratically independent for fifty years now.

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