Zimbabwe News and Internet Radio

NBS intensifies expansion drive

The National Building Society (NBS) is targeting an expansion of its distribution network by opening four new branches and 19 agencies this year, managing director Ken Chitando has said.

National Social Security Authority (Nssa)
National Social Security Authority (Nssa)

This also comes as the National Social Security Authority (Nssa)-owned mortgage lender has managed to grow its assets from $5 million in 2015 to $57 million as at December 2016.

“We are hoping for a hybrid distribution channel of conventional branches and agencies by way of establishing offices at the Nssa’s premises nationwide,” Chitando said yesterday, adding they were also targeting 120 outlets nationally.

“Beyond that, we are also looking at collaborative efforts with other electronic services providers and players with ample or requisite space to roll-out our products,” he said.

Having received $25 million from the shareholder — given as 60 percent for Nssa’s general annuity and 40 for the accident fund — NBS has splurged an almost similar amount on loans and advances to clients, chief financial officer Ethel Chitanda said.

In the outlook, Chitando said they were looking at increasing deposits — beyond the $20 million which the mortgage lender had mobilised in the year under review —  and these strategies included a bond issue and capital call.

“The Diaspora remains an interesting prospect for us,” he said, adding they were also looking at improving such things as “process optimisation and delivering 10 000 houses in 2017”.

The project, which is part of NBS’ new housing developments countrywide, will cost nearly $150 million.

Chitando said their shareholder has not only committed to funding their ventures nationwide, but their prescribed asset status should also help in mobilising resources for these projects.

In Chinhoyi and Harare, for instance, Nssa had expressed its willingness to back NBS’ $37 million capital expenditure for the construction of 700 houses and 800 townhouses in the capital’s western suburb of Glaudina.

Some of the lender’s completed units have been commissioned in areas like Adelaide park in Epworth; Harare, Woodbrooke Park in Bindura, Amalinda Park in Glen Norah, Harare as well as Stoneridge Park in Harare.

In all its projects, the fledgling financial institution utilises the pensions authority’s land banks and is also amenable to the idea of working with private developers.

With over 1 000 mortgages so far, the one-year old NBS hopes to remain the market leader in delivering medium and high-density housing solutions.

As part of that expansion drive and plan, the mortgage financier is hoping to launch its Chinhoyi branch first, followed by Gweru — around May — Masvingo in July and then Mutare around September 2017. Daily News