by Rudo Saungweme.

In its bid to provide houses to low income earners Government workers, the Public Service Commission (PSC) has engaged the National Building Society (NBS) for a possible downward review of their interest rates on mortgage.

NBS’ current interest rate stands at 9.5 percent for the US$60 million dollar civil servants command housing scheme. PSC is therefore beseeching the bank to review the rates from 9.5 percent to six percent per annum.

This comes at a time when the new Government is working on improving the living conditions of all Zimbabweans in line with President Emmerson Mnangagwa’s set agenda of turning Zimbabwe into a middle income economy by 2030.

NBS was set up with a mandate to contribute to the national housing stock and support the Government’s Financial Inclusion programmes. Its goal is to deliver affordable low cost housing through providing housing finance to first time home owners.

Its interest rates ranges from 9.5 percent to 11.5 percent. Therefore, PSC feels that the interest rates are too high for low income earners and be further reviewed to six percent. The Commission also indicated that maximum interest rate should be marked at seven percent.

In their housing project, NBS has completed Adelaide Park in Epworth, Woodbrooke Park in Bindura, Amalinda Park in Glen Norah and Stoneridge Park in Harare. In Dzivaresekwa, NBS is constructing houses that are meant for low income earners. Apart from the low income earners, the bank also builds houses for the informal sector which include Small Medium Enterprise.

President Mnangagwa is encouraging everyone in both the private and public sector to collectively contribute in building the Zimbabwe that everyone wants.

Meanwhile, President Mnangagwa has commissioned a US$2 billion dollar housing project in Hopeville, Bulawayo today. This will be a relief to the low income earners as they will be able to have decent accommodation.

The Ministry of Local Government, Public Works and National Housing has been mandated to oversee the modernisation of suburbs and restore sanity.