Finance and Economic Development Minister Patrick Chinamasa breaks the ground at Fidelity Life’s Southview Park residential project yesterday. On his left is Local Government Minister Dr Ignatius Chombo, Fidelity chief executive Mr Simon Chapereka (centre) and Defence Minister Sydney Sekeramayi.
Happiness Zengeni Business Editor—
Finance Minister Patrick Chinamasa says Government will give prescribed asset status to funds which will be channelled towards infrastructure development and not consumption. Speaking at the official ground-breaking ceremony of Fidelity Life Southview Park Development, the minister said he will give prescribed asset status to any housing project that is being undertaken in the country.
“Any housing project which comes my way, I will give it prescribed asset status just as what happened with Fidelity Life.”
He reiterated that insurance companies and pension funds are a huge source of resource mobilisation.
“Through this project, it has been demonstrated that insurance companies and pension funds possess the ability to harness funds for critical infrastructure development.”
“As we go forward I want those resources to go towards infrastructure development such as housing and small hydro projects and not consumption.
“I therefore urge other insurance companies and pension funds such as NSSA and Old Mutual to emulate such developments.”
Minister Chinamasa said as recipients of contractual savings such as premiums and pension contributions, insurance companies and pension funds are invited to come up with innovative business initiatives and properly priced products to ensure the recovery of the economy.
“The industry should complain less about inhibiting environmental factors and instead offer solutions,” said Minister Chinamasa adding Government will continue collaborating with the insurance industry to ensure a business friendly environment.
Zimbabwe Stock Exchange-listed Fidelity Life Assurance has anchored its growth on the property development project; confident it will deliver a $30 million windfall if all the 5 974 stands are sold. Southview Park, which is located in south-west Harare was launched in 2012 on land purchased from CFI Holdings’ Crest Breeders for $3,3 million.
The land area measuring 328 hectares will be divided into 5 974 by 240 square metre stands being sold for $10 500 or flexible payment terms spread over 60 months after the payment of a $3 750 deposit and monthly instalments of $143,42/month.
The spread can be 10 years at $89,20 per month.
For this year alone, if 3 500 stands are sold, the group will have a total $32,37 million as proceeds but the total income would get to $34 million after accounting for $4,25 million interest income and taking out $2,62 million insurance. Automatically, the group will offer a loan protection policy and free funeral cover to all who purchase on instalments.
Minister Chinamasa said the Local Government Ministry was working to identify land in cities, towns and growth points throughout where housing projects will be undertaken over the next five years under the Zim-Asset economic plan.
Local Government Minister Dr Ignatious Chombo said his ministry was working on a Land Developers Bill to regulate the property industry and bring sanity in the sector which of late has been shrouded in ownership as well as illegal settling battles.
“My ministry is in the process of developing a Land Developers Bill that will bring sanity in the sector,” he said.
He said a lot of residents were being swindled through housing schemes resulting in loss of their hard earned capital in the wake of liquidity challenges facing the economy.
The Finance Minister also said Government will negotiate with foreign investors for infrastructure projects, the portion of risk that can be insured locally after coming to the realisation that most were not insuring their risk with local companies.
“All negotiations will factor in the portion of risk that can be insured locally. This will be so because it is important for economic development to build robust local institutions.”