Affordable housing: A key driver for sustainable development
Affordable housing is one of the key aspects of development in Namibia and in response to the country's pressing housing needs, Old Mutual Namibia launched its Housing Fund in August this year.With an initial capital of N$50 million, the initiative is set to provide critical financial support for affordable housing projects, aiming to address the growing demand for accessible and affordable housing in the country.
The government set a national target in the Fifth National Development Plan of developing 20 000 houses over four years and mandated the NHE to execute 5 000 houses of that target.
In addition, the government has tasked the NHE with building 47 622 houses by 2030. For this to materialise, the NHE will require at least N$375 million to build the first 5000 houses.
The government acknowledges each person's right to a proper living standard, including decent housing and the provision of basic infrastructure and services. The first and foremost starting point toward making this dream a reality is to provide them with affordable land. This will serve as the first catalyst and unlock access to decent housing in Namibia, which remains the government's commitment to delivering affordable housing to as many Namibians as possible.
In light of this, the reviewed National Housing Policy has an Implementation Action Plan of five years. The policy will further reinforce and scale up all collaborative ongoing actions and partnerships between the government, community-based organisations, and the private sector.
Target groups
The policy gives special attention to the improvement of conditions in informal settlements and the needs of identified target groups, notably the ultra-low, low, and middle-income groups that make up approximately 88% of the section of the population in need of affordable land and decent housing.
Namibia's National Housing Policy stipulates that the country faces a generational task of ensuring adequate housing and sanitation to over 300 000 Namibian households, with an overwhelming majority being ultra-low and low-income households that cannot afford or access the current formal housing market. Government statistics indicate that about 230 000 families live in shacks in informal settlements countrywide.
It will focus on initiatives such as the Informal Settlement Upgrade Pilot Project, expanding its affordable housing solutions to low- and middle-income families. The government has said that proceeds generated through the sale of these new houses shall be deposited in the Housing Revolving Fund, currently utilised for funding houses under the Informal Settlement Upgrading Pilot Project.
Besides being a basic need, housing is very important for the national development of Namibia. It is important that we as Namibians collectively address the housing challenges facing us as a nation.
This transition starts with small savings and dedicated goal setting, combined with public and private initiatives addressing these basic needs and creating a road from a dream to hope and thus reality.
*Christoff Bauernschmitt is the head of Alternative Investments, Old Mutual Investment Group.
** Opinion pieces and letters by the public do not necessarily reflect the opinion of the editorial team. The editors reserve the right to abridge original texts. All newspapers of Namibia Media Holdings adhere to the Code of Ethics for Namibian Media, a code established jointly with the Media Ombudsman.