The Sunday Mail
Prince Mushawevato recently in LUSAKA, Zambia
HOUSING and property development firm, Enhanced Mortgaging and Housing Africa (EMHA) is making a bold statement in the construction sector.
The firm’s desire to provide decent accommodation for low and middle income earners in the country has morphed into an African dream. EMHA has in the last two years constructed at least 5 000 housing units for local home seekers.
Officials from the company said they are targeting to double the figure before end of next year. But owning a house in urban areas is usually a dream for the majority.
Costs involved in purchasing a piece of land and the actual construction work is beyond many. The situation is worsened by the fact that most construction companies and banks are reluctant to engage low income earners.
Established institutions focus mainly on high spenders.
This, however, stands against Government’s Vision 2030, a radical economic transformation programme aimed at turning the country into an Upper Middle-Income economy. This is the primary reason why the construction firm has made a conscious decision to create house ownership opportunities for all. Among people that have benefited from their home equity loan system are street vendors, farm workers, public transport and truck drivers. Civil servants are also joining the list.
The firm’s business model and its efficiency has in turn attracted interests from foreign companies that wish to implement similar systems in their homelands.
Accordingly, EMHA has opened its doors for possible foreign partnerships. As a result, the rising construction company’s operating territory is fast expanding across the continent.
A high powered delegation from the housing firm travelled to Zambia to seal a multi-million partnership deal with property developer, The Rosenthall Group LLC (TRG). At least 10 000 housing units are supposed to be constructed in different parts of Zambia under the deal over a two-year period.
The project is part of “Zambia’s Presidential Housing Initiative” aimed at providing houses for all. It is targeting low and medium income earners with a 70 to 30 percent distribution ratio respectively.
Annie Mwewa, one of The Rosenthall Group LLC (TRG) directors that led the signing ceremony described the pact as life changing.
“I’m a lawyer by profession and often I’m tempted to use legal jargon when I speak. But let me just say I have signed this deal willingly and not under any form of duress.
“I know it will go a long way in providing decent accommodation to the general Zambian populace. This is just the beginning and we hope the project will expand. The venture will create job opportunities for both Zambians and Zimbabweans,” said Mwewa.
The project is expected to commence this week in places like Solwezi, Chinsali and Shiwangu. At least 2 000 houses will be built in each of the identified districts. Zambian experts say it costs between US$30 000 and US$45 000 to build a modest three-bedroom house. The contractor is also supposed to develop schools, clinics, hospitals, police stations and road networks for the area.
The total cost of the project is projected above half-a-billion United States dollars. EMHA chairman Engineer Harrison Marange is impressed with strides made by the company.
“These are beneficial synergies. The project will require specialists in the fields of civil engineering, plumbing, building, painting, surveying, architect and so on. The workforce will be selected from Zimbabwe and Zambia. Besides it should be our duty to develop Africa,” said Marange.
Before Zambia, EMHA had also sealed an almost similar multi-million dollar joint venture deal in Ghana. Furthermore, the firm has ongoing operations in Tanzania, Zanzibar and Sierra Leone. Negotiations are also underway for them to start operations in Kenya, Burundi, Botswana and Rwanda.
EMHA chief operations officer Felix Musewu said they want to redefine construction business on the African continent.
“Owning a house should never be a preserve for the elite. Also we need to show people that it is not only white foreigners that are investors. As black people we can help each other develop by sharing ideas and bring investment opportunities to each other’s countries,” remarked Musewu.
“We have improved vastly in terms of mortgaging and property development in Zimbabwe and beyond. Before this, it was white-owned companies that dominated the sector.”
Locally, the firm has housing units under construction in different parts of the country that include Harare, Chitungwiza, Marondera, Guruve, Plumtree, Victoria Falls, Rusape, Headlands and Ruwa. Working with various urban councils, the firm’s efforts have gone a long way in aiding Government to reduce a housing backlog that currently stands at 1,25 million units.
