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🇿🇼 Zimbabwe /Culture & Society

Unlock Zimbabwe's 'Dead Capital' or Remain Trapped in Poverty - Sharpe

From AllAfrica Zimbabwe · () English

Summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Context piece
  • WestProp chief executive Kenneth Sharpe is urging Zimbabwe to reform its mortgage market and unlock property wealth that homeowners cannot easily use as capital.
  • He said mortgage lending represents less than 1% of Zimbabwe’s real estate market, despite an estimated $100 billion in residential property.
  • Sharpe argued that expanded, responsible mortgage finance could support construction, investment and broader economic activity, while the government must help create the conditions for growth.

Zimbabwe’s homeowners may hold billions of dollars in property but remain unable to turn much of that wealth into usable capital, according to WestProp chief executive Kenneth Sharpe.

It's appalling that today in Zimbabwe we have less than one percent, if I said to you 0.04% you wouldn't believe me, but that's the factual truth, of mortgages against our real estate market.

— Kenneth SharpeHe criticized the small share of Zimbabwean property backed by mortgages.

Speaking at the sixth ZimReal Conference, Sharpe called for urgent mortgage-market reforms. He said mortgage lending accounts for less than 1% of Zimbabwe’s real estate market, leaving homeowners “paper rich” but short of cash. He described the situation as “dead capital” that cannot support household finances or wider economic activity.

Sharpe estimated the value of Zimbabwe’s homes at $100 billion, including $20 billion to $30 billion in Harare. He argued that limited mortgage financing prevents owners from borrowing against those properties and restricts access to capital.

So how do we possibly think....we can take the dead capital, which we have, we have dead capital, we're paper rich, but very poor in the pocket.

— Kenneth SharpeHe described the gap between property ownership and access to cash.

“If we cannot take that dead capital and unlock the liquidity that gives access to money to our citizens then we will be locked in debt forever, locked in poverty forever,” he said. He also warned that greater borrowing would need responsible lending and sound financial management.

If we cannot take that dead capital and unlock the liquidity that gives access to money to our citizens then we will be locked in debt forever, locked in poverty forever.

— Kenneth SharpeHe warned about the consequences of leaving property wealth inaccessible.

Sharpe pointed to Africa’s wider mortgage market, saying the continent has about $130 billion in mortgages against more than $10 trillion in assets. He said expanding property-backed lending could stimulate construction, investment and household wealth. In his view, the government has the leading responsibility for creating a market in which mortgage finance can expand, potentially offering a faster economic boost than reliance on minerals alone.

Government has a responsibility, more than all of us do, to make sure that the sector works.

— Kenneth SharpeHe called on the government to support mortgage-market expansion.
About this summary

Originally published by AllAfrica Zimbabwe. Summarized and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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