RBZ urges NBS to forge stronger partnerships

LIVINGSTONE MARUFU

The Reserve Bank of Zimbabwe (RBZ) has urged the National Building Society (NBS) to forge stronger partnerships with financial institutions, government and development agencies to help tackle the country’s estimated two million-unit housing backlog.

Zimbabwe’s housing deficit, driven by rapid urbanisation, population growth and limited access to affordable mortgage finance, remains one of the country’s most pressing development challenges, particularly in Harare and Bulawayo.

Speaking during NBS’s 10th anniversary celebrations in Harare last week, RBZ director for Banking Supervision, Surveillance and Financial Stability, Philip Madamombe, said addressing the housing crisis requires collaboration because housing finance is highly capital intensive.

“Effective contribution to national development priorities requires strong partnerships between government, regulators, financial institutions, development partners, the private sector and communities. No single institution can address the country’s housing and financial needs alone,” Madamombe said.

“Given the important role that NBS plays in housing finance, the society should build strong partnerships that expand access to affordable housing finance while preserving the institution’s safety and soundness.”

NBS is estimated to have facilitated the delivery of about 5,000 housing units over the past decade.

Madamombe encouraged the building society to continue widening access to affordable housing finance and inclusive financial services while maintaining strong corporate governance, robust risk management and full compliance with regulatory requirements.

“The Reserve Bank is confident that, with continued focus and responsible growth, NBS will remain an important contributor to housing delivery, financial inclusion and Zimbabwe’s Vision 2030 aspirations,” he said.

He described housing as a key driver of economic development, saying it extends beyond providing shelter to stimulating savings, employment creation, infrastructure development and broader economic activity.

“A well-functioning housing finance market contributes directly to social development and national prosperity,” Madamombe said.

He commended NBS for its contribution to housing finance and financial inclusion over the past decade, saying the institution has supported national development priorities under the National Development Strategy 2 (NDS2).

“Housing finance extends beyond home ownership. It supports construction activity, local manufacturing, small businesses, employment and household asset creation. Institutions such as NBS can make a meaningful contribution to inclusive economic development by offering financing solutions that respond to the evolving needs of customers,” he said.

Madamombe said the prevailing macroeconomic environment, characterised by single-digit inflation and exchange rate stability, provides a solid platform for financial institutions to expand long-term lending and support productive investment.

He added that deeper adoption of the local currency would reinforce these stability gains by promoting domestic transactions, savings mobilisation and investor confidence.

The RBZ official also called on financial institutions to strengthen their intermediary role by mobilising capital towards productive sectors while embracing environmental, social and governance (ESG) principles.

“It is only strong and resilient institutions that can play a meaningful role in supporting sustainable and inclusive economic growth. Stability, sound governance, effective risk management and adequate capital remain essential for protecting depositors, preserving confidence and enabling banks to finance long-term national priorities,” Madamombe said.

NBS acting managing director Mukai Mahachi said strategic partnerships have been central to the institution’s success over the past decade and will remain critical as it pursues its next phase of growth.

“The story of NBS would not be complete without recognising the collective efforts of those who came before us. NBS stands here today stronger, wiser and better positioned for the future,” Mahachi said.

“A decade is only the beginning. The next 10 years will demand greater innovation, sharper customer focus and stronger execution.”

She thanked the institution’s regulators, partners, customers and employees for supporting NBS’s growth journey, saying the organisation’s future would be built on discipline, trust and a shared commitment to its purpose.

“Our ambition is clear. NBS is not here simply to participate in the financial sector. We aspire to become a systemically important institution that delivers measurable impact, earns trust at scale and improves the lives of the communities we serve,” Mahachi said.