Zambia faces a huge housing deficit that has forced rates for rentals to be so expensive, but the situation promises to be alleviated with the current government and private sector efforts to bridge the widening deficit.
One of the efforts to reduce Zambia’s housing shortage is the newest signing of a deal to build low cost and high cost housing units in different parts of the country.
According to Housing and Infrastructure Development Minister Ronald Chitotela, Zambia is set to tackle its housing shortage with the start of a project early 2017 to build 15,000 houses at an estimated cost of 1 billion euros ($1.04 billion).
Zambia’s state-run National Housing Authority (NHA) has signed a deal for the project with Magcor International Inc, the minister said. The deal was signed this week on Thursday, December 15, 2016 in Lusaka.
“The Magcor project is one of the many infrastructure projects due to start next year and we expect that it will ease our housing deficit,” Chitotela told Reuters.
Magcor signed a Memorandum of Understanding (MOU) and had already signed a Joint Venture Agreement with the NHA, Magcor CEO Michael Glynn said.
Glynn said his firm had guaranteed financing to build the houses in partnership with the NHA and U.S. project management and construction company Volkert Global.
He said the partnership would build the 15,000 houses over five years.
“Magcor will design, build and deliver these projects to the leasing company NHA and related public and private sectors with both equity and debt financing,” he said.
Zambia has a housing deficit affecting 1.5 million people, a third of whom are in capital cities, he said.