Shack Federation Could Bail Out Defaulters

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By Surihe Gaomas

WINDHOEK

The Shack Dwellers Federation of Namibia (SDFN) housing initiative could be the answer to the repossession of houses because of unpaid mortgage repayments.

Through the scheme, poor people are able to build new houses for themselves and to keep paying their loans while making savings at the same time. This is not so with other home-owners whose houses are repossessed due to non-payment of bonds. In this connection, the deputy minister of Regional and Local Government and Rural Development, Kazenambo Kazenambo, praised the existing Public Private Partnership venture between SDFN, Namibia Housing Action Group (NHAG) and Standard Bank of Namibia.

At the occasion on Monday, Standard Bank donated a cheque of N$32 000 to SDFN to build decent houses for disadvantaged communities.

“I have always been witnessing positive news about the Shack Dwellers Federation. Unemployed people are making bricks and building their houses through saving schemes. I have never heard a story about repossession of houses in these schemes. So this is a miracle and needs to be emulated throughout the country,” explained Kazenambo.

He said the initiative, which is in line with government’s housing priority, needs to be extended to other communities.

“These programmes and activities are complementing the central government in addressing the socio-economic and developmental challenges of the country with its limited resources,” said Kazenambo. Since its establishment in October 1998, the SDFN has made great strides in housing people who previously lived in shacks. More than 72 000 Namibians currently live in sub-standard houses while more than 11 000 new houses must be built each year to cater for the huge housing backlog. In view of this, the managing director of Standard Bank Namibia, Mpumzi Pupuma, said the partnership with SDFN, which started in 2006, aims at addressing the housing backlog in the country.

“We still believe that every family deserves a home, and that is why we have continued and even strengthened our affiliation with the Shack Dwellers Federation of Namibia. A roof over one’s head and food in the stomach are some of the basics that each person deserves in order to feel safe and secure,” said Pupuma.

The growth of informal settlements in Windhoek has been around 1.6 percent per year, making it an ever-growing challenge to provide land and housing at the same rate. Standard Bank has opened book-based accounts for SDFN members, while exempting them from cash deposit fees.

Pupuma said the partnership led to the launch of the bank’s home loan scheme in August 2006 and again in 2007.

“Standard Bank, however, did not only want to assist them by providing banking products and services, but also wanted to recognize them for their hard work and achievements since their establishment in October 1998 and to applaud them for the culture of saving they cultivate in their members,” said Pupuma.

The bank provides N$50 to the SDFN for every home loan registered with the bank during a certain period of time. So far, N$12 300 has been collected.

The money was handed to the Federation on Monday. In February, Standard bank donated N$20 000 to the Federation.