INDO Zambia Bank (IZB) is making significant strides toward reshaping Zambia’s real estate sector with the announcement of a Memorandum of Understanding (MoU) with The Hills, a premier real estate firm. This collaboration aims to transform the Palabana area in Chongwe District with the phased development of commercial, retail, and mixed-use properties. The agreement, signed on January 20, 2025, marks a new chapter in the Zambian housing market, focusing on delivering modern and aesthetically appealing structures along Leopards Hill Road on the outskirts of Lusaka.
Under the terms of the MoU, IZB will provide crucial financing solutions for real estate development, making home ownership more accessible to the Zambian public. Eligible customers of the bank will have the opportunity to access financing for both land purchases and completed properties. Customers can begin the purchasing process at any IZB branch or through The Hills’ sales and marketing outlets, streamlining the process for both potential homeowners and investors.
IZB Managing Director, Brajesh Kumar Singh, emphasized the significance of this partnership in making homeownership a reality for more Zambians. “This partnership allows eligible customers to access financing for land intended for property construction and completed properties, ensuring a seamless experience in acquiring homes,” Singh said.
Mwelwa Chibesakunda, Chairperson of The Hills, expressed his enthusiasm for the collaboration, describing it as a crucial step in the company’s growth and Zambia’s development. “This partnership gives our clients and the public, including Zambians in the diaspora, access to mortgages and construction loans at affordable interest rates and favorable tenures. This is a game-changer for home investment and securing futures,” Chibesakunda stated.
Furthermore, the MoU will allow The Hills to collaborate with other companies in the construction, manufacturing, and property development sectors, thus contributing to Zambia’s broader national aspirations. This will also promote the development of key infrastructure such as roads, water and sewerage systems, electricity, healthcare, and education within the development.
The partnership is poised to make a tangible impact on Zambia’s housing market, with plans to create over 1,500 new homes, addressing the growing housing deficit in Lusaka. As part of its commitment to enhancing homeownership, IZB has revamped its Indo Home Loan facility, offering longer repayment periods of up to 300 months, lower interest rates, and loan options tailored to meet the diverse needs of salaried individuals, self-employed professionals, and families.
Key improvements to the home loan facility include financing for various purposes, such as purchasing ready-made homes, acquiring plots, constructing properties, home improvements, and refinancing. The bank has also introduced the Indo Top Up loan, designed for customers seeking to take over existing home loans or refinance on more favorable terms.
The partnership has sparked positive feedback from industry experts. Lusaka resident Mike Ng’uni praised the initiative for its potential to refine the financial products offered to real estate developers, particularly in terms of lowering the cost of real estate financing. He believes this will create more opportunities for developers and attract a wider pool of financial professionals with expertise in the real estate sector.
Business executive Cephas Chabu highlighted the importance of the partnership in addressing Zambia’s housing deficit, noting that it brings together finance and technical services to accelerate home loan uptake and increase home availability. “This partnership will simplify the process for prospective homeowners, helping to increase the stock of homes available to Zambians,” Chabu said.
While the partnership is a significant step forward for the real estate sector, some Zambians have expressed concerns over the prohibitive interest rates that still pose a challenge to widespread real estate development. Nonetheless, this collaboration between INDO Zambia Bank and The Hills represents a bold move in addressing Zambia’s housing needs and fostering the growth of sustainable, inclusive communities.
With this MoU, both parties are determined to support the Zambian public’s aspirations for better housing and a brighter future, while driving Zambia’s real estate industry toward growth and transformation.
