The Mozambican government housing fund and Henan Guoji Group Co. Ltd of China have agreed to resume work on a housing development in Intaka, near Maputo, Rádio Moçambique reports.

The state-run radio station says the government will pay for the construction of 100 more homes to begin with, and cut by 90 percent the sum of each instalment buyers will pay for them.

The report says weak demand means only 500 of the 5,000 homes planned at Intaka have been built so far.

A road serving Intaka, now under construction at a price of 500 million meticals (about US$7.6 million), may be a new selling point for the housing, Rádio Moçambique says.