A Chinese firm, China Sonangol, is set to develop satellite towns around Harare in a development that is expected to ease housing problems in the capital.

The State media reported on Monday that the Zimbabwean government had provided land in excess of 1,000 hectares to the firm for the development of the towns.

This follows the singing of a Memorandum of Understanding between Zimbabwe and China Sonangol that will see the latter funding the development of satellite towns.

The Chinese joint venture company has already unveiled an US$8 billion package to fund various developmental programs in Zimbabwe.

Local Government, Urban and Rural Development Minister Ignatius Chombo told the Herald that the government was now waiting for the Chinese company to come on board.

"As government, we have made significant land available for the development of satellite towns in Harare which is in excess of 1,000 hectares," he said.

"The land covers areas in Mount Hampden (some 20 km north west of Harare) and some parts of Mazowe (north of Harare). We are now ready as government and we are now only waiting for our Chinese counterparts to come on board."

Chombo added that the government was waiting for Chinese experts to come and inspect the land before construction gets underway.

He said if fully implemented, the Chinese deal would go a long way in addressing accommodation challenges in Harare, estimated to have a housing backlog of close to one million people.

Chombo said many people were failing to build decent houses in towns due to the high cost of building materials.

"It is our hope that this deal will afford many people decent accommodation in Harare. Due to high cost of building material, many people are failing construct houses in towns," he said.

The cash strapped the Zimbabwean government is failing to provide decent accommodation to urban residents whose population is growing tremendously as rural-to-urban migration soar in recent years.

The US$8 billion Chinese investment ranks as one of the biggest investments the country has received since the formation of the inclusive government in February.

(Xinhua News Agency December 29, 2009)