Mishma Chakanyuka, Staff Writer 
LOCAL financial institutions should proactively adopt green mortgages as a distinct product offering to promote climate action, a local property company has urged.
A green mortgage is a preferential lending scheme offered by a bank or lender to a buyer who can demonstrate that the property they are borrowing for meets certain environmental criteria.
This could include a newly built home with an environmentally-friendly green roof or solar panels.
According to Integrated Properties, green mortgages can incentivise customers with rewards such as cashback or favourable interest rates.
These incentives not only assist banks in fostering customer loyalty and expanding their market share but also cater to the emerging segment of environmentally conscious consumers seeking sustainable practices within their homes, such as retrofitting with solar systems.
Mike E Juru, Chief Executive Officer for Integrated Properties,
The report further states that green financing strategies can contribute to the country’s sustainable development goals and showcase banks’ commitment to social responsibility, thereby strengthening their position within the global financial industry and society.
However, the 2024 mortgage market in the country is expected to remain challenging, characterised by limited access, high costs, and uncertainty. The report highlights that the performance of the property sector in 2024 largely depends on how authorities will improve the operating environment, focusing on positively influencing the critical success variables.
Mortgages currently represent a minute fraction of the credit issued by the Reserve Bank of Zimbabwe, accounting for only 8.85 percent of total loans distributed for 2023.
The report identifies Foreign Direct Investment (FDI), low-interest rates, a functional mortgage framework, currency stability, policy consistency, and property rights as the primary drivers of infrastructure development.
Meanwhile, the government expects the construction sector to grow by 3.4 percent this year, with the country targeting the construction of 220,000 housing units by 2025.
First Mutual Wealth predicts an eight percent growth in the construction sector this year due to the growing demand for assets in the sector and growth in infrastructure spending in both the private and public sectors.
The report concludes by stating that if the prioritisation of local players on national infrastructure development projects continues into 2024, supported by timely payments to service providers, the opportunity will provide a lifeline to local contractors and suppliers.
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