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AfDB approves US$ 25 million to Zambia National Building Society

10/11/2017

The Board of Directors of the African Development Bank Group (AfDB) has approved a US$ 25 million in Kwacha equivalent to Zambia National Building Society (ZNBS).

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ZNBS MORTGAGES AT 14% AS THE SOCIETY AND NAPSA SIGN AGREEMENT TO PROVIDE DECENT AND AFFORDABLE HOUSING AND HOUSING FINANCE

Click to download NAPSA NORTHGAGE mortgage application form

The Zambia National Building Society has signed a Memorandum of Agreement with the National Pensions Scheme Authority NAPSA for the sale of housing units at the NAPSA Northgate Housing Complex in Lusaka.

 

The houses whose price is K575,000.00 will be sold to eligible customers through either a Three Month Payment plan directly to NAPSA or through a Mortgage obtained from the ZNBS at interest of 14% and a maximum tenure of 30 years. This has been described as the most affordable mortgage product which will allow Zambians both resident in the country and those in the diaspora.

The details in the speeches below from both the ZNBS Board Chairperson Dr. David Nama and the NAPSA Board of Trustees Chairperson Ms. Marian Munyinda.

 

SPEECH BY THE ZNBS BOARD CHAIRPERSON, DR DAVID NAMA

THE BOARD CHAIRPERSON, NATIONAL PENSIONS SCHEME AUTHORITY MS. MARIAN C. MUNYINDA

THE DIRECTOR GENERAL NATIONAL PENSIONS SCHEME AUTHORITY MR. YOLLARD KACHINDA AND YOUR TEAM

THE MANAGING DIRECTOR ZAMBIA NATIONAL BUILDING SOCIETY MR. JOSEPH M. CHIKOLWA AND YOUR TEAM

MEMBERS OF THE PRESS

LADIES AND GENTLEMEN

MAY I SIMPLY SAY ALL PROTOCOL OBSERVED.

IT IS MY PLEASURE TO BE HERE AT THIS EXCITING OCCASION AND TO WITNESS THE SIGNING OF A MEMORANDUM OF AGREEMENT BETWEEN THE ZAMBIA NATIONAL BUILDING SOCIETY AND THE NATIONAL PENSIONS SCHEME AUTHORITY (NAPSA).

AS A MORTGAGE FINANCING INSTITUTION, ZAMBIA NATIONAL BUILDING SOCIETY WAS ESTABLISHED BY THE GOVERNMENT OF THE REPUBLIC OF ZAMBIA IN 1970 WITH A CLEAR MANDATE OF HELPING TO INCREASE THE HOUSING STOCK IN THE COUNTRY BY MOBILISING FINANCIAL RESOURCES IN ORDER TO PROVIDE MORTGAGES.

THE AGREEMENT WE ARE SIGNING TODAY IS A VERY IMPORTANT STRATEGIC PARTNERSHIP THAT DEMONSTRATES OUR COMMITTMENT TO DELIVERING AFFORDABLE HOUSING AND HOUSING FINANCE TO ZAMBIANS RESIDENT BOTH HERE IN THE COUNTRY AND THOSE IN THE DIASPORA.

THIS LADIES AND GENTLEMEN SPEAKS TO OUR MISSION OF PROVIDING QUALITY AFFORDABLE AND SUSTAINABLE MORTGAGE FINANCE, FINANCIAL SERVICES AND OTHER ALLIED SERVICES FOR THE BENEFIT OF OUR CLIENTS AND THE SOCIETY AS A WHOLE.

MADAM CHAIRPERSON, THE RELATIONSHIP BETWEEN ZNBS AND NAPSA HAS GROWN FROM STRENGTH TO STRENGTH AS DEMONSTRATED IN THE VARIOUS COLLABORATIONS BETWEEN THE TWO ORGANISATIONS IN THE AREA OF PROVIDING AFFORDABLE HOUSING.

THE AGREEMENT WE ARE SIGNING TODAY IS A UNIQUE ONE BECAUSE IT INVOLVES NOT ONLY THE SALE OF NORTHGATE HOUSING UNITS IN LUSAKA AT A VERY COMPETITVE PRICE, BUT ALSO THE SIGNING OF A FINANCING AGREEMENT THAT WILL FURTHER PUSH THE COST OF MORTGAGES DOWN IN ORDER FOR THE PUBLIC TO AFFORD THESE HOUSES.

LADIES AND GENTLEMEN, MEMBERS OF THE PRESS,

WITH THIS FINANCING OBTAINED FROM NAPSA, THE SOCIETY WILL NOW BE ABLE TO PROVIDE MORTGAGES TO ELIGIBLE APPLICANTS AT AN INTEREST RATE OF 14% AND A TENURE OF 30 YEARS FOR THOSE INTENDING TO PURCHASE NORTHGATE HOUSES ONLY. THIS IS THE MOST AFFORDABLE MORTGAGE YOU CAN EVER GET IN ZAMBIA CURRENTLY.

MEANWHILE, THE INTEREST RATE FOR OTHER MORTGAGES SUCH AS CONSTRUCTION, HOME IMPROVEMENT AND OUTRIGHT PURCHASE HAVE BEEN ADJUSTED FURTHER FROM 21.5% TO 20% WITH A TENURE OF 15 YEARS.

MADAM CHAIRPERSON,

OFFLOADING 311 HOUSING UNITS TO THE GENERAL PUBLIC FOR AS LOW AS K575,000 FOR WHICH ZNBS WILL PROVIDE MORTGAGES AT THE MOST COMPETITVE INTEREST RATE AND LONGEST TENURE IS A BOLD DECISION MADE BY BOTH PARTIES AND A RARE OPPORTUNITY THAT THE PUBLIC SHOULD UTILISE IN ORDER TO OWN DECENT AND AFFORDABLE HOUSING.

IN THIS PARTNERSHIP LADIES AND GENTLEMEN, OUR ROLE AS ZAMBIA NATIONAL BUILDING SOCIETY IS TO PROVIDE MORTGAGE FINANCING TO ELIGIBLE APPLICANTS OF THESE HOUSING UNITS.

IN FURTHERANCE OF OUR MANDATE, WE HAVE CONTINUED TO PARTNER WITH VARIOUS ORGANISATIONS IN ORDER TO PROVIDE MORTGAGES TO THEIR EMPLOYEES.

I AM ALSO PLEASED TO INFORM YOU THAT THE SOCIETY HAS A LOAN REFINANCING SCHEME WITH THE GOVERNEMENT OF THE REPUBLIC OF ZAMBIA SIGNED THROUGH THE PUBLIC SERVICE MANAGEMENT DIVISION (PSMD).

THIS SCHEME, MADAM CHAIRPERSON, WAS BORN OUT OF CONCERNS BY OUR COLLEAGUES IN THE PUBLIC SERVICE THAT THEY HAD OVERBORROWED AND THEIR PAYSLIPS HAD NO ROOM FOR OUR MORTGAGES.

AS A RESULT, WE CREATED THIS PSMD SCHEME WITH THE AIM OF HELPING PUBLIC SERVICE EMPLOYEES REDUCE THEIR DEBT BURDENS SO THAT THEY HAVE AN OPPORTUNITY TO OBTAIN MORTGAGES AND BE ABLE TO AFFORD HOUSES SUCH AS WHAT NAPSA IS OFFERING UNDER THE ARRANGEMENT WE ARE SIGNING TODAY.

AS WE SPEAK LADIES AND GENTLEMEN, WE HAVE SO FAR RECEIVED OVER 2,100 APPLICATIONS SINCE THE START OF THIS SCHEME AND ABOUT 1089 HAVE BEEN APPROVED AND HAVE BEEN REFINANCED TO THE VALUE OF OVER K41 MILLION. THE REMAINING APPLICATIONS ARE AT VARIOUS STAGES OF APPRAISAL.

THESE CUSTOMERS ARE POTENTIAL OFF-TAKERS OF THIS PRODUCT WE ARE LAUNCHING TODAY.

IN CONCLUSION LADIES AND GENTLEMEN, WITH ALL THESE EFFORTS BEING APPLIED, WE ANTICIPATE TO GROW OUR MORTGAGE BOOK.

AS WE COMMEMORATE THE WORLD SAVINGS DAY THAT FALLS WITHIN THE MONTH OF OCTOBER AND ACTIVITIES INTO THE MONTH OF NOVEMBER, I WOULD LIKE TO APPEAL TO THE GENERAL PUBLIC TO NOT ONLY SAVE TO MEET SHORT-TERM GOALS, BUT TO ALSO SAVE TO ACHIEVE LONG TERM NEEDS SUCH AS OWN SHELTER.

I WOULD LIKE TO THANK THE NEGOTIATING TEAMS FROM BOTH ZNBS AND NAPSA FOR THEIR EFFORTS THAT RESULTED IN THE MOA WE ARE SIGNING TODAY.

LADIES AND GENTLEMEN

I THANK YOU AND MAY GOD RICHLY BLESS YOU ALL.

 

 

SPEECH BY THE NAPSA BOARD OF TRUSTEES CHAIRPERSON MS. MARIAN MUNYINDA

  • THE CHAIRPERSON, ZAMBIA NATIONAL BUILDING SOCIETY BOARD OF DIRECTORS, DR DAVID NAMA
  • THE MANAGING DIRECTOR, ZAMBIA NATIONAL BUILDING SOCIETY, MR JOSEPH CHIKOLWA
  • THE DIRECTOR GENERAL, NATIONAL PENSION SCHEME AUTHORITY, MR YOLLARD KACHINDA
  • ALL MANAGEMENT OFFICIALS FROM ZNBS AND NAPSA
  • INVITED GUESTS
  • MEMBERS OF THE PRESS
  • LADIES AND GENTLEMEN

IT IS MY GREAT PLEASURE AND HONOUR TO WELCOME YOU ALL TO THIS SIGNING CEREMONY OF THE AGREEMENT BETWEEN THE NATIONAL PENSION SCHEME AUTHORITY AND THE ZAMBIA NATIONAL BUILDING SOCIETY FOR THE SALE OF NAPSA HOUSING UNITS AT NORTHGATE HOUSING COMPLEX IN LUSAKA.

THE AUTHORITY HAS A TOTAL OF 311 THREE-BEDROOMED SELF-CONTAINED HOUSES THAT ARE ON SALE AT A COST OF K575,000 PER UNIT. ALL THE UNITS ARE SEMI-DETACHED AND OF THE SAME DESIGN AND SIZE. MEMBERS OF THE PUBLIC CAN BUY ANY OF THE UNITS EITHER THROUGH A FLEXIBLE PAYMENT PLAN OF UP TO THREE MONTHS OR A MORTGAGE FACILITY THAT HAS BEEN ARRANGED BY THE TWO PARTIES. THE MORTGAGE WILL BE PROVIDED BY THE ZAMBIA NATIONAL BUILDING SOCIETY AT AN AFFORDABLE INTEREST RATE OF 14 PERCENT PER ANNUM FOR A MAXIMUM OF 30 YEARS. AS FAR AS I KNOW, THIS IS THE MOST COMPETITIVE INTEREST RATE FOR A MORTGAGE ON THE ZAMBIAN MARKET AT THE MOMENT. THIS IS INDEED A HUGE STEP TOWARDS MAKING HOUSING FINANCING AFFORDABLE AND ACCESSIBLE TO MANY ZAMBIANS.

I THEREFORE URGE MEMBERS OF THE PUBLIC TO VISIT NAPSA NORTHGATE COMPLEX AND APPLY FOR A HOUSE OF THEIR CHOICE STARTING TOMORROW, 8 NOVEMBER 2017 UNTIL 15 DECEMBER 2017.

LADIES AND GENTLEMEN, ZAMBIA IS FACING A SERIOUS HOUSING DEFICIT ESTIMATED AT ABOUT 1.5 MILLION HOUSES COUNTRYWIDE. ONE OF THE MAJOR OBSTACLES IN TRYING TO MEET THE DEMAND IS LIMITED ACCESS TO AFFORDABLE MORTGAGE FINANCING BY MAJORITY ZAMBIANS. MOST MORTGAGE FACILITIES IN THE COUNTRY ARE HIGHLY PRICED AND ABOVE THE REACH OF AVERAGE ZAMBIANS. IT IS FOR THIS REASON THAT NAPSA HAS ENTERED INTO THIS AGREEMENT WITH THE ZAMBIA NATIONAL BUILDING SOCIETY TO PROVIDE ACCESS TO HOUSING THROUGH THE PROVISION OF AFFORDABLE FINANCING.

THIS PARTNERSHIP BETWEEN NAPSA AND ZNBS IS THEREFORE EXTREMELY IMPORTANT AS IT ADDRESSES ONE OF THE KEY CHALLENGES HAMPERING ACCESS TO DECENT AND AFFORDABLE HOUSING IN ZAMBIA. AS NAPSA WE ARE VERY DELIGHTED TO BE PIONEERING THIS DEVELOPMENT WHICH WILL SEE MORE ZAMBIANS OWNING HOUSES EVEN AS NAPSA EMBARKS ON LOW-COST HOUSING PROJECTS ACROSS THE COUNTRY.

LADIES AND GENTLEMEN, YOU MAY RECALL THAT IN APRIL 2017, NAPSA ANNOUNCED A MAJOR SHIFT IN ITS APPROACH REGARDING PROVISION OF TERM DEPOSITS TO FINANCIAL INSTITUTIONS. PREVIOUSLY THE AUTHORITY WOULD AUCTION ITS CAPITAL ON THE MARKET TO THE HIGHEST BIDDER AT THE SAME RATE ACROSS THE BOARD, A MOVE THAT TO SOME EXTENT HAD THE POTENTIAL TO EXCLUDE CERTAIN FINANCIAL INSTITUTIONS WITH LOWER CAPACITY FROM ACCESSING CAPITAL.

UNDER THE NEW APPROACH NAPSA IS CONSIDERING FINANCIAL INSTITUTIONS ON A CASE-BY-CASE BASIS. THIS MOVE IS AIMED AT REDUCING THE LENDING RATES SO THAT MORE BANKS COULD ACCESS FUNDING FROM NAPSA AND BE ABLE TO PASS ON THE BENEFIT TO THEIR CUSTOMERS. I AM GLAD TO STATE THAT THIS AGREEMENT BEING SINGED TODAY IS AS A RESULT OF THE STATED INTERVENTION. I AM VERY SURE THAT THE NEW APPROACH WILL GREATLY ASSIST IN THE STABILIZATION OF THE FINANCIAL MARKET AND LOWERING OF INTEREST RATES.

LADIES AND GENTLEMEN, I AM VERY DELIGHTED THAT THIS AGREEMENT WILL ASSIST TO BRING DOWN THE HOUSING DEFICIT AS MORE PEOPLE WILL NOW HAVE ACCESS TO AFFORDABLE FINANCING FOR DECENT HOUSING.

AS I CONCLUDE I WOULD LIKE TO REITERATE THAT WE HAVE RECOGNIZED THE CHALLENGES THAT MANY ZAMBIANS HAVE BEEN EXPERIENCING WITH REGARD TO ACCESSING LONG TERM FINANCING, BE IT FOR BUSINESS OR HOUSING. THEREFORE, IT IS OUR INTENTION AND DESIRE TO FACILITATE FUNDING ARRANGEMENTS FOR LONG TERM FINANCING AND MORTGAGE FACILITIES SUCH AS THIS ONE SO THAT WE CAN CONTRIBUTE EVEN MORE TO SOCIAL ECONOMIC DEVELOPMENT OF THE COUNTRY.

I THANK YOU ALL.

 

 

NEW ZAMBIA NATIONAL BUILDING SOCIETY BOARD APPOINTED

The Government has appointed a new board for the Zambia National Building Society.

FINANCE MINISTER FELIX MUTATI named those appointed as:

1. David Nama
2. Jane Monde Kabwela
3. Michael Gondwe
4. Reuben Mtolo
5. Anne Chikwanda
6. George Chisanga
7. Raymond Mpundu

AND private sector captain of industry and renowned entrepreneur DAVID NAMA has been named Chairperson of the newly appointed Zambia National Building Society Board of Directors.

In a congratulatory message to the appointees, Mr. Mutati has said the new board needs to urgently review the institutions business model and prioritize the development of quality but affordable housing.

The Minister stated that Zambia has a demographic dividend related to her working-age-population and added that, “to build sustained wealth among the working-age-population, we need to deliver services and goods that are affordable; now, and in future.”

Meanwhile newly appointed Zambia National Building Society Board Chairperson David Nama has said the task given to his board is attainable because the government has already set the platform with the creation of new districts and the prioritization of socio-infrastructure in the economic stabilisation and growth programme.

Mr. Nama made the comments when he paid a courtesy on the Minister of Finance.

Source: Ministry of Finance Public Relations Office (Press Release)

ZNBS SIGNS MEMORANDUM OF AGREEMENT WITH GOVERNMENT

"for the refinancing of loans that public service employees have with other financial institutions"

ZNBS Managing Director Mr. Joseph Chikolwa (l) and PSMD Director Technical Services Mrs. Margaret Kapihya (r) exchange copies of the MOA during the launch of the Public Service Employees Loan Refinancing Scheme as ZCTU SG Mr. Cosmas Mukuka (m) looks on.

The Zambia National Building Society has signed a memorandum of agreement with the Government of the Republic of Zambia through the Public Service Management Division PSMD for the refinancing of public service employees loan facilities they have have with other financial institutins.

Speaking during the launch of the loan refinancing scheme at the Taj Pamodzi Hotel, ZNBS Managing Director Mr. Joseph Chikolwa said public service employees play an important role in nurturing and developing the country.

Mr. Chikolwa added that about 40 million kwacha has been set aside for the scheme to be disbursed in the initial stages.

 

"Public service employees play an important role in nurturing and developing the country. It is only fair that those who serve the country can be afforded the opportunity to access affordable credit facilities in form of personal loans and/or mortgages...The financing offered under this moa will lower the cost of interest for public service employees that have borrowed at high interest rates and result in a higher take home pay.

About 40 million kwacha has been set aside for the scheme to be disbursed in the initial stages.

We envisage that many public service employees will benefit from this agreement in view of the competitive interest rates and the tenure of the loan facilities." click to download full speech.

Speaking at the same event Zambia Congress of Trade Unions Secretary General Cosmas Mukuka said the refinancing agreement will motivate the public workforce by improving their take home pay and reducing their debt burden. He called on ZNBS to ensure that the scheme benefits all public service employees especially those in the rural areas.

Related Stories:

ZNBS deposit base swells | ZNBS targets to increase asset portfolio | ZNBS rakes K20.6 million profits

 

Government to start land titling exercise, ZNBS to position itself in affordable housing – Acting President


Her Excellency the Acting President says government has created a new ministry of housing and infrastructure to meet the housing deficit currently being experienced in the country.

Mrs. Inonge Mutukwa Wina also says that government is undertaking a titling exercise to ensure every piece of land in Zambia is on title, and will result into many Zambians having security and access to loan facilities. She said this when the Zambia national building society (ZNBS) Managing Director Mr. Joseph Chikolwa paid a courtesy call on her.

She has challenged ZNBS to restructure its strategy for the informal sector especially women to enable them access mortgages.

The acting president said the housing portfolio in the country does not match with the aspirations of the Zambian people adding that ZNBS has a huge responsibility in the next five years to provide affordable housing.

She said ZNBS should document the challenges women and those in the informal sector face in order to help in policy formulation.

Mrs Wina has also congratulated ZNBS on the various initiatives including the women's mortgage promotion and looks forward to seeing the society position itself as one of the key front runners in the area of providing affordable housing.

And ZNBS Managing Director Mr. Joseph Chikolwa indicated that the informal sector was a matter of concern which is being seriously studied. The ZNBS chief executive added that his institution is partnering with the private sector in the development of housing units.

He said the society has engaged all the district councils through the ministry of local government and has so far acquired land in Nyimba, Chilanga and Chikankata where title will soon be availed to the society.

In the partnership with the private sector houses will be constructed targeting ordinary Zambians.

Mr. Chikolwa said this will help lower the cost of the housing units for ordinary Zambians to buy.

Mr. Chikolwa who was accompanied by Chairperson of the Staff and Remuneration Committee of the board Mrs. Monde Wood, Director Mortgages Mrs. Martha Kangwa, Senior Marketing officer Pumulo Amutike and Public Relations Officer Chanda Mubanga congratulated Mrs. Wina for being elected as Republican Vice President.

Meanwhile ZNBS Director Mortgages Mrs. Martha Kangwa revealed that out of 158 women that applied for the mortgages during the 2015 women's mortgage promotion, 19 million kwacha was paid out to about 100 women.

Mrs. Kangwa said the 58 women either did not have title for their land or could not provide verifiable income or any form of security documents.

ZNBS Managing Director Elected to AUHF Board


Zambia National Building Society (ZNBS) Managing Director Mr. Joseph Mwansa Chikolwa has been elected to the Board of the African Union for Housing Finance (AUHF).

This was announced at the recently held 32nd AUHF Annual General Meeting (AGM), which took place in Abuja, Nigeria.

Mr. Chikolwa is the first Zambian to be elected to the Board of Directors of the Pan African body whose main objective is bent on supporting its members to realise their vision for an enabled and productive housing finance sector across Africa.

The AUHF was established as a member-based body of housing lenders in 1984. The organisation currently comprises 50 members from banks, building societies, micro-finance institutions, housing development corporations, developers and other institutions involved in the mobilisation of funds for shelter and housing from 17 different countries in Africa.

Visit www.auhf.co.za for more information about the African Union for Housing Finance

THE BABY WALLET AT THE KIDS AND BABY EXPO


The ZNBS Team with some of the kids at the Expo

The 2016 Kids an d Baby Expo at the East Park Mall in Lusaka captured some of the most exciting talents kids have hidden in those innocent personalities. It was a marvel to see babies take to the stage in satisfying some of their wishes of cat-walking before large crowds.

However, we do not forget one of the very important things about this stage of these great beings. This is the formative period for children said to be between 1-8 years.

The period is said to be the best window of opportunity that we must seize to plant beautiful memories and intellectual ability.

The Baby Wallet Account targets this segment of the Zambian population which has remained financially excluded. We aim to raise financial awareness levels among the children by getting them actively involved through very interactive approaches.

During the exhibition at the Kids and Baby Expo, the response from kids themselves was overwhelming so much that every member of the team became a sales person in order to meet the demand.

What was more important is that every child dressed in the Orange T-Shirt opened an account and the that literary dressed about 70% of the kids at the expo.

THE 2016 INTERNATIONAL LABOUR DAY

The Zambia National Building Society team at the 2016 International Labour Day march past at independence avenue in Lusaka.

Last Updated (Monday, 13 November 2017 13:08)

 

Click to download the ZNBS Procurement plan for 2017 to 2018

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Download the Quarterly Financial Statement for March, 2016

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