Zimbabwe low-cost shelter loan -- Zimbabwe low-cost shelter technical assistance

The final evaluation is based on project documents, site visits, a beneficiary and lodger survey, and interviews with GOZ personnel. The purpose was to evaluate the design and implementation of HG secondary town projects, with a look at a similar HG project in Harare. The major findings and conclusions are as follows. (1) The projects are quite successful, particularly in terms of plot allocation, construction material loans, and unit construction. (2) Overall, more than 19,000 plots have been allocated and more than 16,000 units have been constructed. (3) The program is also viewed as a success from the perspectives of RHUDO, USAID/Z, and the GOZ. (4) The GOZ accepts the concept of aided self-help housing, viz., that urban low-income families are willing and able to contribute to the resolution of their own shelter problems. (5) Problems in affordability, cost recovery, and private sector replicability reflect weaknesses in project design. (6) Project experience with small, informal sector contractors was generally favorable. (7) Financing through private credit institutions is extremely difficult. (8) It is important to reinforce policy successes by supporting implementation training and studies on issues such as land markets, arrears, and building society participation in low-income projects. The evaluation team noted the following lessons. (1) Given the chance to become homeowners, low-income families not only contribute an impressive amount of their own funds, but also are willing to pay a high share of current income for housing. (2) A government"s housing policy can be influenced by a continuing dialogue based on evident achievements in project implementation. (3) The concept of affordability of housing by beneficiaries is increasingly accepted by governments. (4) Thorough and regular orientations are as important to project implementation staff as to project beneficiaries. (5) Environmental reviews should be tied to plan approvals and disbursement requests. (6) HG loan and implementation agreements should designate the amount and allocation of money which will be required in foreign currency. (7) A realistic land value should be considered in planning. (8) Planners should explore ways of bridging the gap between low-income borrowers who have little knowledge of formal lending systems and the credit institutions which have traditionally served middle and upper income groups. (Author abstract, modified)