Who is here present with us? Permanent secretaries and senior government officials, cooperating partners present. The board chairperson and members of the board of directors of ZNBC. And of course the former chairperson of the board, Dr. Namba. The managing director and management and staff of Zambia National Building Society. Distinguished invited guests. Members of the media. Ladies and gentlemen.
First of all, qualify my standing here. Of course in my capacity as Minister of Infrastructure, Housing and Urban Development. But also standing in for our colleague the Minister of Finance and National Planning who is not here. So my speech will combine the two ministries.
Mr. President, it is my distinct honor and a privilege to welcome you and everybody else who is here to this important occasion marking the official launch of the Zambia National Building Society's head office here in Lusaka. Your presence here today is a clear demonstration of your continued support and confidence in Zambia National Building Society and its role in advancing our national development agenda. I wish to sincerely thank you all for joining us on this significant milestone.
Allow me at the outset to commend the board of directors and the board chairperson and management of ZNBC for their leadership and foresight in delivering this modern facility. This investment reflects a clear commitment to strengthening institutional capacity and aligning our operations with international standards, while providing a conducive environment to support the society's expanding mandate.
Mr. President and ladies and gentlemen, since assuming office under the leadership of your Excellency Mr. Hakainde Hichilema, your government has remained steadfast in restoring macroeconomic stability and setting the country on a path towards sustainable and inclusive society. I was most impressed when I listened to the board chairperson, basically after outlining what this government, what this president has done, and appreciating the many facets where we have achieved positive results.
Through prudent fiscal management, disciplined economic reforms and strategic policy interventions, we have, Mr. President, stabilized the economy, restored investor confidence and have created a predictable environment for both public and private sector growth. These efforts are beginning to yield positive results, and we remain committed to consolidating these gains.
In this regard, institutions such as ZNBC are critical to achieving our broader economic objectives. Zambia National Building Society has a unique and strategic role in mobilizing savings, facilitating investments and expanding access to housing finance, thereby contributing directly to job creation, economic activities and of course improved livelihoods of our people.
Mr. President, I am pleased to note that ZNBC has demonstrated strong financial performance, having declared total dividend payments amounting to 80.3 million kwacha between 2020 and 2025.
This is a clear indication of the institution's resilience, sound governance and its contribution to government's revenue and national development.
Furthermore, I wish to inform this distinguished gathering that cabinet has approved the issuance of class A shares for ZNBC. This strategic initiative is aimed at strengthening the society's capital base and positioning it for long-term growth and sustainability.
While the process of engaging potential investors is currently underway, government is also actively exploring complementary measures that will enable ZNBC to leverage its internally generated capital for strategic investments, particularly in housing and infrastructure development.
Mr. President, ladies and gentlemen, for many years, Zambia has faced significant housing deficit, driven by rapid urbanization, population growth and the rising cost of land and construction materials. However, under your leadership Mr. President, government has demonstrated strong resolve in addressing these challenges through deliberate policy direction and strategic interventions.
Through the national housing policy and other targeted initiatives, we have been pursuing a clear agenda to: one, expand the availability of affordable housing across all income segments; two, promote inclusive, well-planned and sustainable urban development; and the third, enhance access to innovative housing finance solutions that make home ownership more attainable for our citizens.
Mr. President, allow me to particularly highlight the growing partnerships involving the Bank of Zambia, the Minister of Infrastructure, Housing and Urban Development and other key stakeholders, aimed at ensuring that every Zambian has access to affordable and sustainable housing finance solutions.
Furthermore, the Minister of Infrastructure, Housing and Urban Development is collaborating with the Zambia National Building Society to implement the Bondi Yanga initiative which you have seen on screen.
Mr. President, the Bondi Yanga initiative, supported by its outreach platforms such as TV series and social media engagements, is a deliberate effort to educate, inspire and empower our citizens. It seeks to guide Zambians on how to access serviced land and affordable housing solutions, while at the same time promoting a deeper understanding of housing finance and financial inclusion.
Through this initiative, we are encouraging our people to transition from informal settlements and embrace planned, structured and sustainable communities that offer dignity, security and opportunity. Ultimately, Bondi Yanga is about transforming mindsets, expanding access and improving the quality of life of our citizens across the country.
After all Mr. President, you have directed, you have advised the public sector that whatever we do, the ultimate aim should be to improve the lives of our citizens. This also represents a practical and scalable model that brings together government, financial institutions and developers to address the housing challenge in a coordinated and sustainable manner.
As we look forward to phase two of the Bondi Yanga program, the focus will be on establishing a one-stop housing market zone for quality and affordable building materials.
Mr. President, ladies and gentlemen, initiatives such as the Quarto Hills in Lusaka which the managing director talked about earlier, which I had the privilege of launching last year, and the Mansa Gardens in Luapula province are clear demonstrations of what can be achieved through strategic alignment and innovation.
Zambia National Building Society's contribution extends beyond financing. The institution has played a key role in advancing evidence-based planning and policy support within the housing sector. This is reflected in the sponsorship of the 2024 National Housing Forum as well as its support towards the housing economic value chain study.
Now, Mr. President, this study established that Zambia's housing demand generates material orders exceeding 25 billion kwacha per annum, of which 14.8 billion is supplied by domestic firms. In terms of employment, the sector accounted for 264,000 jobs as of 2024.
The study also revealed that housing construction contributes about 4% to Zambia's GDP and approximately 40% of the total construction gross fixed capital formation, making it the largest subsector within the construction industry.
Mr. President, I reveal these numbers so that within the housing sector, we can understand what contribution it makes to the overall economy as well as contribution to improving the living standards of our people. These findings, Mr. President, underscore the strategic importance of housing development as a key driver of economic growth and national development.
Furthermore, ZNBS has brought pride to our nation by being recognized as the most affordable housing finance lender in Africa by the African Union for Housing Finance, that is AUHF. This achievement underscores the institution's commitment to affordability, inclusivity, and of course excellence.
Mr. President, ladies and gentlemen, the task before us requires collective effort. When we were touring the facility, we saw a board that talked about teamwork. This is what we mean. Through strong partnerships, innovation, and coordinated action, we can significantly improve access to decent, affordable housing while simultaneously driving economic growth, job creation, and improved living standards.
As a ministry, we remain committed to creating an enabling environment that supports institutions like ZNBS to thrive and deliver on their mandate. As we officially open this facility today, let us recognize that it is not merely an infrastructure investment, but a symbol of progress, institutional strength, and our shared commitment to national development.
Mr. President, ladies and gentlemen, it is now my singular honor and privilege to invite the guest of honor, the President of the Republic of Zambia, Mr. Hakainde Hichilema, to deliver his keynote address. Mr. President, sir, thank you.
