INDO Zambia Bank (IZB) has lived up to its mantra of ‘Supporting you, Developing Zambia’ by entering into a Memorandum of Understanding (MoU) with The Hills, an upmarket real estate firm for the phased development of commercial, retail and mixed use real estates in the Palabana area of Chongwe District.
The MoU, a game-changer, is changing the face of Leopards Hill Road on the outskirts of Lusaka with aesthetically appealing structures and bringing to the table best practices of the industry.According to the MoU signed in Lusaka on Monday 20th January 2025, IZB will provide seamless real estate financing solutions.
“This partnership allows eligible customers of IZB to access financing for both land intended for property construction and completed properties, and our customers can initiate the purchase process through the bank’s branches and The Hills sales and marketing outlets,” IZB Managing Director Brajesh Kumar Singh said.
And Mwelwa Chibesakunda, Chairperson of The Hills described the signing of the MoU as “a significant milestone in the development of The Hills as it gives our clients and the general public including Zambians in the diaspora exclusive access to mortgages and construction loans at affordable interest rates and favourable tenures that allow existing and potential homeowners to invest in their homes and secure their futures.”
Mr Chibesakunda said the partnership with IZB paves the way for The Hills to work with other companies that operate in construction, manufacturing, property development and other sectors which will enable the Hill to play its role towards the national aspirations in order to build a better and stronger Zambia.
“We are extremely pleased with the partnership that we have forged with Indo Zambia Bank as it will enable IZB and The Hills to achieve their visions of investing in sustainable and inclusive communities while providing key services and amenities such as roads, water and sewerage, electricity, healthcare and education all within one development,” he said.
Mr Chibesakunda said the partnership also bears significant impact on the country’s housing needs as it will create in excess of 1,500 new homes which will materially contribute to reducing the current housing deficit in Lusaka particularly.And Mr Singh said as part of the efforts to support home ownership and empowerment of the citizenry, IZB has revamped its Indo Home Loan facility in response to specific needs of a cross section of society.
Among the key improvements to the home ownership scheme include a longer repayment tenure of up to 300 months, low interest rates tailored to meet the needs of salaried individuals, self-employed business people and families.Mr Singh says the Home Loan facility covers various purposes, including purchasing readymade houses,acquiring plots and constructing property, construction on existing plots within 18 months, home improvements, including repairs, renovations and extensions as well as refinancing on revised terms.“Additionally, customers can apply for an Indo Top Up loan, specifically designed for the takeover of their existing home loans. This facility can also be extended to existing IZB home loan borrowers,” he said.
Reacting to the MoU, Lusaka resident Mike Ng’uni said the greatest significance is the growth of real estate lending portfolios in the Zambian financial landscape.
“This should help refine financial products along the peculiar requirements of the sector, away from those in the general lending pool. Banks, by their pole position of having access to cheaper money through deposit taking, could help lower the cost of real estate financing, thereby increasing financial access to more developers. Hopefully, it shall also help build a cadre of banking professionals with deeper skills set of the real estate sector and help tailor appropriate products,” Mr Ng’uni said.
He said the sprouting of housing estates is helping in structured developments, which local authorities have failed to implement and enforces development of aesthetically appealing structures and brings to the table best practices of the industry," he said.
A business executive Cephas Chabu hailed the MoU as a synergy bringing together finance and technical services to accelerate the roll-out of home mortgages at a faster rate and help bring down home deficit in Zambia.
“Most home loan institutions have the liquidity but lack uptake due to challenges such as costs of architectural drawings, valuations etc. So this partnership will bring everything under one roof hence increasing home loan uptake and home stock,” Mr Chabu said.
By Benedict Tembo
Interest rates in Zambia are too prohibitive to foster meaningful real estate development.