MICROCAPITAL BRIEF: Commercial Bank of Zimbabwe (CBZ) Holdings to Develop Low-Cost Housing in Zimbabwe

Commercial Bank of Zimbabwe (CBZ) Holdings, a Zimbabwe-based financial services conglomerate, recently announced that it will begin building low-cost houses in June 2014 on some of the land it owns, which is valued at a total of USD 66.7 million, with the aim of alleviating the shortage of housing facilities in Zimbabwe. CBZ reports that it will be using USD 20 million from its reserves and USD 16 million of funding from Shelter Afrique, a Kenya-based real estate development facilitator, for the housing project.

As of December 2013, CBZ Holdings reported total assets of USD 1.5 billion, return on assets of 3 percent and return on equity of 20 percent. As of December 2011, Shelter Afrique reported total assets of USD 195 million.

By Tejas Jain, Research Associate

About Commercial Bank of Zimbabwe (CBZ) Holdings

Commercial Bank of Zimbabwe (CBZ) Holdings, established in 1980, is a Zimbabwe-based financial services conglomerate that is headquartered in the capital of Harare. The company provides services in various fields including asset management, banking, insurance, investments, mortgages and retail financing. CBZ Holdings is a public company with its shares traded on the Zimbabwe Stock Exchange. As of December 2013, CBZ Holdings reported total assets of USD 1.5 billion, return on assets of 3 percent and return on equity of 20 percent.

About Shelter Afrique

Shelter Afrique, based in Kenya, was established in 1982 by African governments; the African Development Bank, a multilateral institution that provides loans and grants to governments and private companies in Africa; and Africa-Reinsurance, an African reinsurance company,  with the mandate of mobilizing resources for housing development in Africa. The company provides financial and technical assistance for housing and urban development activities. The company offers residential real estate programs, commercial real estate programs, infrastructure and land development financing programs, mortgage financing, contractor support services and trade financing for building material procurement. As of December 2011, Shelter Afrique reported total assets of USD 195 million.

Sources and Additional Resources:

The Standard, “CBZ goes for low- cost housing,”
http://www.thestandard.co.zw/2014/03/02/cbz-goes-low-cost-housing/

MicroCapital Story, December 20, 2012, “CBZ Bank, Econet Wireless Partner to Offer Mobile Banking in Zimbabwe,”
https://www.microcapital.org/microcapital-brief-cbz-bank-econet-wireless-partner-to-offer-mobile-banking-in-zimbabwe/

MicroCapital Story, December 28, 2011, “CBZ Bank of Zimbabwe, Zimbabwe Microfinance Wholesale Trust Issuing Loans of Up to $50k to Microfinance Institutions in Zimbabwe,”
https://www.microcapital.org/microcapital-brief-cbz-bank-of-zimbabwe-zimbabwe-microfinance-wholesale-trust-issuing-loans-of-up-to-50k-to-microfinance-institutions-in-zimbabwe/

MicroCapital Universe Profile: Commercial Bank of Zimbabwe (CBZ) Holdings,
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Commercial+Bank+of+Zimbabwe

MicroCapital Universe Profile: Shelter Afrique,
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Shelter+Afrique

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