CBZ, BCC propose partnership

The CBZ and the Bulawayo City Council are reported to have proposed partnership in developing Mahatshula East residential stands number 670.

According to council latest minutes, the Director of Engineering Services Simela Dube reported (9th February, 2016) that Council had a four pronged Housing delivery strategy which included the engagement of financial institutions in the Housing delivery. Council had previously engaged private developers who also had failed to deliver. As an improvement or development from Private Developers, Council had also used the pre-sale strategy.

"The Pre-sale strategy had been a success in the sense that Council had been partnering with individuals to raise the funds for servicing," reads the minutes. "However, despite the successes in getting serviced stands the delivery system had had some challenges in the payment of the stands after the initial deposit and had not been very successful in the Housing production. The superstructure development had been slow due to lack of participation by the financial institutions. The department had deliberately continued to craft proposals and sent to financial institutions like NSSA, CABS and CBZ Bank to mention a few. The financial institutions had expressed interest in partnering with Council in
an effort to meet the housing demand."

The minutes states that CBZ Bank had approached Council and had expressed interest in Partnering Council in residential development.

"As a result, a project proposal to partner Council in the development of 670 stands in Mahatshula medium density residential area was put forward for the bank's consideration where Council had indicated that the project cost had been $6 241 732.00. CBZ had since written back and indicated that they were prepared to partner council and would finance the project. The bank was ready to embark on deliberations to finalise the partnership details," reads the minutes.

"This was a welcome development to the City as the partnership with a financial
institution would complement other housing delivery strategies like the presale scheme where Council was partnering with beneficiaries. The advantage of partnering with a financial institution was the ability of such institutions to avail lump sum finance at project inception to enable the project to be executed without any financial hitches and thus could have the shortest possible life cycle. This had the advantage of hedging the project against external forces."

The minutes states that in light of CBZ bank's response, it was therefore recommended that Council approved that CBZ Bank entered into a partnership with City of Bulawayo for the development of 670 stands in Mahatshula.

"The 2 parties would then meet to discuss the finer details of the partnership and finalise the agreement," reads the minutes.

Simela had recommended that Council approved that the City of Bulawayo entered into a partnership with CBZ Bank for the development of 670 stands in Mahatshula.

"The two (2) parties would then meet to discuss the finer details of the partnership and finalise the agreement," reads the minutes.