Structural Gridlock: Manzungu Urges Overhaul of Housing Finance to Unlock Sector Growth

By Kudzai Jakachira

Harare — Zimbabwe’s real estate and construction sectors are hurtling toward a severe operational crisis, crippled by a systemic financing deficit that has left property developers starved of capital and prospective homeowners locked out of formal property ownership.

Addressing industry stakeholders at the Zimbabwe Real Estate & Construction Summit, Zimbabwe Building Contractors Association president Dr. Tinashe Manzungu delivered a scathing critique of the country’s archaic housing finance framework. Manzungu warned that the total absence of a dedicated mortgage financing institution has forced developers into a precarious reliance on protracted, direct-installment sales—ranging from modest monthly contributions over five to ten years—to unload residential units.

This improvised retail model has created a disastrous liquidity bottleneck. Developers are left waiting years to recover capital sunk into heavy machinery, labor, and raw materials, effectively crippling their capacity to finance subsequent construction pipelines. Simultaneously, young professionals and working-class citizens face an insurmountable barrier to entry, completely shut out by the lack of accessible, long-term mortgage facilities.

Industry analysts emphasize that this financial gridlock extends far beyond individual housing aspirations, choking a critical economic multiplier. With construction serving as a primary driver for manufacturing, heavy equipment, transport, and labor markets, frozen project pipelines suppress economic activity across multiple sectors. Manzungu maintained that unlocking the sector’s projected contribution of 12 to 15 percent of gross domestic product requires an immediate, structural overhaul of national housing finance.

This demands the establishment of a specialized mortgage banking institution capable of simultaneously injecting construction capital into development projects and extending long-term credit to buyers. Until the state and financial sector implement comprehensive structural reforms, Zimbabwe’s ambitious urban housing market will remain shackled by sluggish, direct-payment arrangements that restrict property ownership to an elite few.

TOP PIC: Dr Tawanda Manzungu (right) with other delegates at the Zimbabwe Real Estate and Construction Summit (ZIRECS)