Zambia has agreed financing deals totalling $170 million with European and African lenders and selected Chinese firms to build houses in key mining towns and a famed tourist city, a senior industry official said on Thursday.
Zik Zekko, the chief executive officer of the National Housing Bond Trust (NHBT), said 1,211 houses would be constructed in the new copper mining town of Solwezi in northwestern Zambia, the ancient copperbelt city of Kitwe and tourist resort city of Livingstone.
A surge in copper production has created critical housing shortages in the mining areas.
Zekko said Pan-African bank, the PTA Bank, Shelter Afrique, the Development Bank of Southern Africa (DBSA) and International Housing Solutions, an associate of the World Bank’s International Finance Corporation (IFC) would be the principle financiers for the projects.
He also told journalists that Standard Chartered Bank would place a bond with Zambian pension funds and insurance firms on the Lusaka Stock Exchange to raise $34 million of the $170 million for the housing projects.
“In all the three pilot projects, a total of $170 million is required to build houses (and) hence we have had to consider going outside our market to source funding,” Zekko said.
Zekko said contracts had been awarded to Chinese firms, Yangtsi Jiang, China Jiangxi and Sichuan International Technical Corp., to construct the houses.
The houses would be sold to Zambians, enabling the NHBT to repay loans from foreign lenders, while foreigners would only be considered if there was not enough demand from locals.
The NHBT had also applied for tax exemptions on imported building materials to enable it to price the houses cheaply.
The NHBT was also in talks with the German-based Africa Development Corporation to fund more houses.
He said financiers were also watching closely the political climate ahead of the presidential elections due on October 30.
“As long as we don’t throw stones (during presidential elections) in October, everything should be fine,” Zekko said.
Reuters
Gud on ya! We definitely need more housing country wide. The youth are currently in a tight spot when it comes to finding accommodation.
china everyday!!!!!!!!!!!!!!!!
I hope this will materialise.We desperately need new housing units after Chiluba gave away what he did not build.
manyumba yavuta pa zed
This sounds like an exciting development venture. I hope it comes to light with long lasting safty nets for the Zambian people. NHA did it and today, many residents of Lusaka own property. A definate must see and welcome venture!
“As long as we don’t throw stones (during presidential elections) in October, everything should be fine,” Zekko said.
PF cadres, have you heard. Don’t throw stones PF cadres. If you’ve lost, you’ve lost so no throwing stones when the boat sinks ok PF.
PF…BASOP!!!!!!
#5 In 2001 it was the UPND supporters who were throwing stones along church road. So the appeal not to throw stones should go to every one. Unfortunately those who throw stones have no assess to this site.
big up to the pioneers of the venture. hope it succeeeds.
This is great news!
Those who are wondering why China, ask the western countries. Ask USA, UK, Canada, France, Italy Spain, Germany; they will tell you why China.
You check behind you computer, whether it is american or european brand, whether it is DELL, HP, Acer, Toshiba etc; tell me if it will not say “Made in China”. 90% of you will find that that is the case, do you ever ask why?
So let us not just talk because we have voice, we need to understand well the economy in which we are today.
The question is are these units gooing to be affordable by the ordinary Zambian? Definitely not, they are meant for the rich who already have chains of houses. Can we for a change have programmes that will benefit the the ordinaries. look at NHA, how much are their houses, its impossible to buy unless you have a retirement package and not just these house loans.
can someon help me get phoenix or hot fm please….
This is good news. That’s the more reason we need a leader who will be able to articulate issues, a leader who will attract investment, a leader who will give confidence to foreign funding of project of such magnitude.
8. SALSA,
At the moment I think the issue is not about the cost of these house.
The issue is about building these houses, whether they are taken by the rich or poor is not an issue at the moment.
You, you must know the low of demand and supply. If there are very few houses availabe, these few units will be so expensive and there will be no question that only the rich will afford.
But the more houses we have the lower the price which will enable the “poor” to afford.
Thats very interesting. Ever since the previous government sold houses to sitting tenents the new generation have no houses. we need houses all over the country. i hope somebody is not just trying to gain political milege and it will be a non starter after October 30.
# 12 I SEE WE CAN WORK TOGETHER.GUD MOVE ANYWAY. PEOPLE NEED SHELTER.
good project by govt. only problem is they will be bought by the elite zambians only. im reliably informed that a 2 bedroom house will cost k250m Govt. should encourage banks to start offering mortgages so that we are all empowered
lt is surprising to hear that only three areas need houses in zambia just image how many were sold and population now
@7
You are very mistaken. Even if most computers are made in China, they are American technology. Americans have set up manufacturing plants there. Most goods made in China are controlled by US firms. They own the technology. Leading world technology comes from US. At the end of the day USA is king, not communist China. Beware of the communists.
Kwena it’s a long time since we left Zambia ehhh…ama shina yamo ati Zik Zekko ifwe tatwakwete. Sound like a conman, anyway, the story makes good reading. Proper shelter is needed in Zambia. And please tear down those zinc fence jungles they call shanty compounds!
Guys not being awkward here. How much does an average worker get in Zambia now?
Zambians, lets not always rush to admit deals which we dont understand. Much as we desparately need these housing units, it is very important for us to absorb what is involved.
1. I hope this deal is not in exchange with our countries mineral rights. These chinese require to be checked. Look at what happened in Zimbabwe(Mineral rights surrendered to the chinese) Sudan (Oil and mineral rights in exchange projects) and DRC (Mineral rights in exchange with dams and hospital/schools projects.
2. Why build these houses in key mining towns ? For them to occupy because of their investments in those areas. Lets not be cheated…
You can never know what the Chinese are up to. They are extremely secretive and unethical. For them, the end justifies the means. The Chinese government is very bad, they will eat us alive. Keep a close eye on the communists. They will easily cheat us with the deals.
number 19 you are a fool. wat do u propose? they build
250 000 000 kwatcha houses in shangombo? urban areas need housing because there is a greater demend in these areas than elsewer. so if u have common sence its would be the highly populated areas of copperbelt, lusaka and livingstone. u kw people like you retard develpoment.
This is a good development indeed! its good that they are thinking of building new cities to decongest Lusaka.
Like it or not the Chinese are masters of construction, they get things done on budget, on spec and on time. Their problem is they are corruptable and they can be convinced into producing rubbish if the owners want it.
Our so called contractors are substandard, late to deliver and over shoot the budget.
China provides the cheapest “labour” in the world, period and that’s why its going places.
This is a well come development, we needed this as early as 15 years ago, I only hope we wont be moving at a snails pace. Next time lets try to localise on our architects works. e.g why not improve on our culture heritage?
Zambian housing for Zambian solutions, Japanese, Chine, Korean have their own.
#12 nice explaination. Lets just appreciate some things not just talking bad every tym. Just like this sata.
@24
Kay, who are you to say that the chinese are the masters of construction. Maybe thats for you. Dont judge a book by its cover. You shall be sorry.
#19. An average Zambian worker gets about K1m. Hope u can now do your mathematics
Away from that I am very happy that houses will be constructed for Zambians in the great NWP
well done RB…you are working hard for your people.
Zambians have a pathetic attitude towards foreign nationals (Chinese in this case). If our govts cannot check the activities of Chinese in Zambia then I am sorry to say but it is the Zambian govt. that is at fault! There is need for policies that protect Zambia, its resources and people. If we don’t have these policies then who is at fault – govt. not the Chinese. Day in and day out we complain Zambians are poorly paid by foreign nationals yet how many teachers, policemen and council workers go home with poor salaries if at all any. And do we ask who pays these teachers and the like – Chinese or the Zambian govt.? Please let us stop blaming foreigners and instead analyze things with reason.
I didnt know Kitwe was an ancient town…lol
The biggotry that I see against Chinese investment arise from misinformation and also due to Western Education. For a long time, UK and USA education dictated the paradiagm of thought. The presence of China on the world stage is upsetting the status quo which says ” only what is done by Americans, Germans and British” is reliable and tasteful or brings you into real civilisation. Wake up dogs!! Africa had better trade relationship with China dating back to the B.C around Kush, Egypt and Ethiopia. The Chinese brought the idea of writing skills which was usurped by Egyptians. China is repositioning itself and Africa is the most important partner to China. Lekeni Ulufyengo!!!!
$170 million divided by 1200 homes means each one will cost $140,379 each.
I live in California USA and that is cheap – but that is extremely expensive in Zambia – also, who is making money off these buildings being sold?
Is anyone concerned about the Chinese firms and the number of workers and number of jobs this will take away from perfectly capable Zambians?
Sounds like a poor decision made by people who have no financial education. I’d like to see a training school to setup and teach Zambians how to build quick solid homes out of natural materials without a lot of cost. Empower the people – have each neighborhood have a building co-op dedicated to this. C’mon Zambia
GREAT!!!!!!!!!!!!!!!