Homelux Property

With EUR 125,000 Homelux will be able to develop 160 homes for low-income households and create 80 jobs (co-financing project).

  • Direct investment
  • 80 new jobs
  • 320 people reached



36 months



Annual interest



6 months

Repayment period
Fully funded in 22 days on 23 October 2017.
+ 300 other investors

IMPORTANT NOTE: high risk product - direct investment to a company. No local partner in between to cover risks.

Basic info:

Issuer: Homelux Property Development 
Currency: EUR
Amount: 125,000
Maturity: 36 months, semi-annually and linearly amortizing
Collateral: None
Interest rate: 6% p.a.

Direct investment

This is a co-financing project: 33% of the funding needed will be crowdfunded via Lendahand, 67% will be financed by institutional investors. One of these institutional investors is the Dutch Good Growth Fund (DGGF), a mandate from the Dutch Ministry of Foreign Affairs managed by Triple Jump. 

This is a direct investment to a company (rather than lending to a financial institution) and therefore it is recommendable that you are careful with the amount you will invest. 

About Vakayi

Vakayi is an SME (small and medium size businesses) impact venture fund that commenced operations in late 2016. The fund has to date been supported by the Dutch Good Growth Fund, a Dutch government fund of funds created to support funds in emerging and frontier markets. It has also received support from Capria Accelerator Fund a fund accelerator and advisory based in Seattle, USA. The fund aims to invest in Zimbabwean SMEs in the essential services (healthcare, housing/property, education and clean energy) to achieve superior rates of capital appreciation as well as social impact.  

About Homelux and the Project

Justin Machibaya founded Homelux Real Estate (Pvt) (“HRE”) Ltd in 2002. HRE is in the business of property sales, property management services and valuations. In 2006 Justin Machibaya created Homelux Property Development (“HPD” or “Homelux”) which is in the business of property development. Homelux has successfully completed numerous residential property developments, early-on in the middle and top income segments of the markets. Homelux has recently begun developments for the low-income segment of the market following the demand and attractive margins in the segment.    

With a EUR 125,000 loan Homelux will develop 160 ready-to-build residential stands for the affordable housing market in Harare. There is a serious shortage of housing in the affordable segment of the market with the city municipality reporting that there is a housing backlog of over 1 million units. This loan will enable families the opportunity to own their own home.   

Impact of the loan: 

  • 160 new homes 
  • 80 jobs created 
  • Pre-school to provide services for a 100 children

It is expected that buyers will buy the residential stands for cash. It is expected that all the stands will be sold over a period of 18 – 24 months. Homelux will make quarterly repayments of the loan over 3 years.  


Chai Musoni – Partner/Chief Executive Officer Chai is the founding partner of Vakayi. He has worked in corporate finance for over 20 years doing deals in Zimbabwe and the region. Before starting Vakayi he was the head of Deal Advisory for KPMG in Zimbabwe. He has extensive business networks in Zimbabwe and deep domain experience. He holds a B.Compt (Univeristy of South Africa) and an MBA (The Henley Management College).   

Patrick Makanza – Partner/Chief Investment Officer Patrick is the founding partner and of Vakayi. He has extensive private equity experience having worked for one of the country’s first equity funds for over 15 years, joining as an analyst and rising to become the managing director. He holds a BBS (UZ) and an MBA (UZ).    

Company nameHomelux
CEOJustin Machibaya
LocationHarare, Zimbabwe

Impact of this project

  • With this investment 80 jobs are created
  • With this investment 320 people are reached

About the investment

TypeDirect investment
Funding target€125,000
Annual interest6.00%
Maturity36 months
Repayment periodSemiannually
Terms and conditionsShow
Note termsDownload

About the risks

What are the risks of investing money?

The risk level depends on the specific project. Local partners cover the risk of currency exchange rates and defaults on Local Partner investments. They do this by maintaining financial reserves for this purpose. Aside from that, there is an option to claim their equity if needed. While these measures are intended to minimize the risk to investors, our local partners face risks of their own that could affect their ability to secure your investment. These include - bankruptcy - currency exchange rates - fraud - operational risks - political and regulatory changes - natural disasters or epidemics.

With direct investments, risks of default are not covered. As the risks are higher, so are the interest rates.

There is also some operational risk at Lendahand. An example might be that Lendahand is unable to find shareholders to finance their activities. In such a case, Lendahand will handle outstanding investments at the best of its ability. At the same time, our ability to legally address non-payment from local partners becomes understandably difficult.

How does Lendahand minimize the risks?

Every local partner must share our social mission to ensure local entrepreneurs can access affordable financing, allowing them to grow their business. Local partners must also have a 'track record'; they must have proven themselves as a reliable credit provider for SMEs.

For instance, this means a solid credit portfolio and enough buffers and equity to compensate for unexpected downturns. We also check the organizational structure of the portfolio company and how robust their (internal) procedures are. Finally, the investments must be in proportion to the total balance of that portfolio company. A healthy balance between effectuating influence and being independent is crucial. If you would like to receive more information on the financial indicators we employ, please contact us via info@lendahand.com.

When currency exchange risks become too high for a local partner, Lendahand will urge the local partner to cover these risks. In some scenarios, the local partner is contractually obliged to comply with these demands.

Lendahand always conducts due diligence when companies request funding. The results can be downloaded on the project detail page. However, this analysis is not investing advice.

Does Lendahand provide a guarantee?

Usually we don't. Local partners take care of the repayment, even if (some) entrepreneurs are unable to do so themselves. If the local partner is for some reason unable to repay then there is a chance of partial or full loss of your money. For this reason, Lendahand only selects financially solid partners based on strict criteria.

For most direct investments, there is no guarantee. However, currency risks are covered.

Sometimes, and only for some direct investments in Africa, our partner Sida, part of the Swedish government, will guarantee a maximum of 50%. Read here more about guarantees with Sida. Projects with Sida guarantees are indicated explicitly on the project page.

Does Lendahand have a license or exemption?

Yes. The Dutch Authority Financial Markets (AFM) has provided Hands-on B.V. (with trade name 'Lendahand') in September 2016 with an investment firm license in accordance with article 2:96 of the Financial Markets Supervision Act (Wft). Placing orders on Lendahand's website is therefore an AFM regulated activity. Lendahand also meets its minimum capital requirements following its license as required by De Nederlandsche Bank (DNB).

Lendahand uses an exemption from an approved prospectus that is available up to EUR 5 Million per year. 

How safe are my personal details?

We adhere to strict safety requirements concerning private and payment details. All sensitive data is sent through an encrypted connection (https). Also, information is stored (encrypted) in a secured facility provided by AWS: the world’s largest hosting service. A secured connection and multi-factor authentication can only retrieve customer documents.

What happens if the local currency devaluates?

Our local partners and companies bear the exchange rate risks. We settle the investments, redemptions, and interest payments in euro.

Does Lendahand use a third foundation fund?

Lendahand works with Intersolve EGI: a Dutch financial institution specializing in payment settlement and electronic money. To be able to offer these financial services, Intersolve EGI must comply with the applicable financial legislation. Intersolve EGI is therefore supervised by De Nederlandsche Bank (DNB) and the Netherlands Authority for the Financial Markets (AFM) and owns a license to act as an Electronic Money Institution (and therefore also has a license as a Payment Institution). Your money will be deposited on a protected and secure bank account until the project you have invested in has been fully funded. Intersolve has no access to these funds. Once the project is fully funded, the money is transferred to the local partner or company in question.

What happens with my money if Lendahand goes bankrupt?

If Hands-On BV (containing the brand name Lendahand) went bankrupt, trades between Lendahand and payment service provider Intersolve EGI would cease immediately. Intersolve will then transfer the funds in your wallet to your bank account (Note: if at this time the project you have invested in has been fully funded and the money has thus been transferred to the local partner, these funds will not be transferred back to your bank account). Intersolve will then, in consultation with a trustee, handle all repayments between the investors and entrepreneurs until the final repayment of the last project has taken place.

Additionally, Lendahand is part of the investor compensation scheme (ICS). This scheme aims to compensate individuals and small businesses with trusted money and or financial instruments (such as notes or options) to a licensed bank, an investment firm, or a financial institution. In case the financial firm is unable to meet its obligations arising from claims related to the investment service (in other words, if Hands-On BV is not keeping track of the acquired notes by investors in the Wge depot correctly). The ICS guarantees an amount of up to €20.000 per individual. For more information, go to www.toezicht.dnb.nl/en/2/50-202210

Why is Intersolve EGI handling my money?

As part of the AFM license for investment firms, it is required that operational activities carried out by Lendahand (maintaining the website, contracting of local partners, legal issues, etc.) are strictly separated from financial transactions (payments made through the website). Intersolve takes care of the costs. This collaboration offers you more security since your money is placed on a protected bank account immediately after making your payment.

What happens when a local partner goes bankrupt?

When a local partner goes bankrupt, there’s a chance you’ll lose (part of) your money. Lendahand will try to recover outstanding payments, but the success rate is limited in such situations. For you, as an investor, there’s no possibility of taking action against the financial institution. Therefore, it is recommendable to choose several different projects.

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