Staff Writer
Government has implored the financial services sector to fully support the development of Real Estate Investment Trusts (REITS) saying concerted effort was needed to streamline processes.
This was said by finance Minister Mthuli Ncube last week on listing of the Eagle REIT on the Victoria Falls Stock Exchange.
Fidelity Life Asset Management is the promoter and fund manager of the Eagle REIT
Ncube who said government remained committed to enabling the Real Estate sector stressed that tax incentives and crowding in capital among other efforts were key.
” As the Government, we remain committed to enabling the Real Estate sector, we urge all stakeholders, local authorities, regulators, pension funds, banks, and
development financiers to fully support its development for the long-term benefit of the people of our great nation.
Concerted efforts are needed to streamline processes, offer tax incentives where necessary, and crowd in capital through blended finance mechanisms.
It is pleasing to note that the Eagle REIT’s upcoming projects are poised to bolster Zimbabwe’s economic landscape significantly.
By facilitating construction employment, advancing housing initiatives, enhancing
tourism infrastructure, and formalizing previously informal real estate assets,” he said
Ncube added thar these ventures will invigorate local economies, boost productivity, and stimulate broader value
chains.
Notably, he said as Zimbabwe’s economy is projected to grow by approximately 6% in 2025, rebounding from a 2% growth
rate in 2024, this anticipated growth was driven by improved agricultural output and increased power generation, marking a recovery from the previous year’s severe drought.
He said infrastructure development played a pivotal role in this economic resurgence.
” The Government’s 2025 Infrastructure Investment Programme aims to address
existing infrastructure gaps, thereby fostering sustainable economic growth and socio-economic transformation.
Indeed, this resonates with our President’s motto of building a prosperous Zimbabwe, leaving no one and no place behind.
The Eagle REIT’s initiatives align seamlessly with these national objectives, positioning it as a key contributor to Zimbabwe’s envisioned economic advancement.
Distinguished Guests, the Government will continue to play a catalytic role. We have provided fiscal and regulatory
incentives for REITs and other collective investment schemes. Through my Ministry, we shall work closely with the ZSE and VFEX to ensure continued innovation, increased listings, and investor protection,” he said
He added that the Eagle REIT was a key enabler of the National Development Strategy 1 (NDS1), especially under the pillars
of Housing Delivery, Infrastructure Development, and Financial Services Sector Reform.
As the nation transitions to NDS2
it will guide the country’s development in the next five years (2026-2030), he said it will build upon the successes and lessons
learned from NDS 1.
“Most importantly, with priorities under
NDS2 that include inclusive economic growth and infrastructure development, REITs will become even more instrumental in attracting private capital to supplement
public funding for infrastructure development.
I therefore, urge institutional and retail investors to actively participate in trading this instrument which has the potential to unlock new dynamic industries in real estate
and across various sectors of our economy,” he concluded
