* Pledged to touch base with the Ministry of Finance to see how government could assist in the fringe benefit tax that is charged on housing schemes and loans offered by employers to their employees
* Also called for collaborative efforts from other stakeholders to emulate what Illovo Sugar Malawi and CRS are doing in narrowing the gap in housing demand in the rural communities
By Duncan Mlanjira
Minister of Lands, Deus Gumba observes that the major challenge in affordability of housing has been the access to affordable financing instruments through loans from lending institutions.
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He said this yesterday when he presided over the launch of a demonstration the site of prototype housing designs in Chikwawa, which Illovo Sugar Malawi Plc’s Thriving Community Foundation — in partnership with international NGO, Catholic Relief Services (CRS) and Ministry of Lands collaborated to build using affordable and durable materials.
In his remarks, Minister Gumba applauded the partnership while imploring on lending institutions to emulate this collaboration in order to assist in affordable access to mortgages and housing loans to the rural communities at economic and affordable rates.
He highlighted that “banks have a high threshold for access to mortgage funding which is far beyond the reach of most rural and urban Malawians”.
“If you look at the bills of quantities that have been produced for the three prototype house designs, you will note that the total cost of each house is such that they will require the intervention of your money lending institutions.
“My Ministry is available to provide independent opinion where challenges arise and will also touch base with the Ministry of Finance to see how government could assist in the fringe benefit tax that is charged on housing schemes and loans offered by employers to their employees.”
Thus Gumba called for collaborative efforts from other stakeholders to emulate what Illovo and CRS are doing “in narrowing the gap in housing demand in the rural communities” which is President Lazarus Chakwera is advancing through the National Housing Policy.
“My Ministry advocates for decent and affordable housing for all Malawians,” he said. “We develop and assist our partners in the development of grant houses for the underprivileged and/or the vulnerable such as persons living with albinism, disaster victims and others.
“I am, therefore, particularly pleased that CRS has so far completed 771 transitional shelter houses for those that had suffered the effects of the recently experienced cyclones and I am also pleased to that our corporate and private sector is joining hands with the civil society in ensuring that you complement the work of the government that housing and welfare issues for our people are safeguarded and guaranteed.
“A home is the first step to prosperity and progress — everyone needs security of shelter in order to ably carry out the demands of this life,” he said while announcing that the government is currently conducting consultations on the reviewed National Housing Policy.
The policy is aimed at “addressing the prevalent housing challenges and national priorities to create an enabling legal institutional and strategic framework for the better delivery of adequate, quality and affordable housing to meet current and future demands and related infrastructural needs of all Malawians.”
“In this policy, the government has incorporated the private sector and the civil society as opposed to its predecessor,” he said, while also urging the all stakeholders to take part in the policy’s consultation process to ensure a final robust framework that is fitting and addressing the needs of all stakeholders that are supporting the Ministry in the area of housing provision.”
He also said it”it is high time organisations consider re-introduction of housing schemes to ensure that their members of staff have safety shelter even after retirement”.
“Currently, a large proportion of housing supplied in the formal sector is on the higher end for nearly 80% of the urban population,” said the Minister, who was impressed with the prototype demonstration site.
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Also present at the function was Chikwawa District District Commissioner (DC), Nardin Kamba who described the event as “auspicious and a moment of great significance, as it represents resilience, collaboration, and commitment to community development”.
“Chikwawa is one of the districts that has suffered significant loss and damage due to floods and other natural disasters,” he said. “These challenges have greatly affected livelihoods, infrastructure, and the well-being of our people.
“In light of these hardships, the construction of resilient houses is a game-changer. These homes will not only provide safety and dignity to families but also help our communities bounce back stronger from different shocks.”
“Development is a shared responsibility, and I am pleased to acknowledge the role of our partners, Catholic Relief Services (CRS) and Illovo, in uplifting this district. Both CRS and Illovo are reliable partners in development, and their unwavering support continues to make a difference in the lives of many people in Chikwawa.”
He added that by providing decent housing, Illovo Sugar Malawi “is not only investing in its workforce but also ensuring that families have a safe and secure place to call home”.
“Such initiatives set a great example for other stakeholders to follow in supporting their employees and the communities in which they operate. Let this be a call to action for other organisations and partners to join hands in building a resilient and developed Chikwawa.
“Together, we can achieve sustainable progress and uplift the lives of our people. I express my gratitude to CRS and Illovo for this noble initiative. As a district, we remain committed to working hand in hand with all stakeholders to ensure that Chikwawa continues to grow and thrive.
DC Nardin Kamba
“With these resilient houses, we are taking an important step toward securing a better future for our communities,” said the DC, who was involved in the design process since 2022 and signed it off alongside the Department of Housing in the Ministry of Lands; Housing & Urban Development; Malawi University of Business & Applied Sciences (MUBAS); Chikwawa District Council and traditional leaders.
Construction started in 2024 putting the designs to test and the demonstration site is for the public to learn the construction process, material, design features and the cost of each — which as of March 2025, the Illovo Sugar Malawi ideal minimum standard was at slightly over K33.2 million (US$19,004.17); Government of Malawi minimum standard at K14.1 (US$8,098.67) and the rural low-cost design inspired by CRS’ transitional shelter at K9.1 million (US$5,200.67).
Affordability considerations included use of stronger and more durable locking bricks as opposed to burnt bricks, which can be made right at construction site and uses minimum cement.
The durability considers protection from elements using steel frames to prevent termite damage, raised foundation against rising and running flood water, strong iron sheets secured from heavy winds.
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