Oshakati
Oshakati, the only town singled out by Urban and Rural Development Minister Sophia Shaaningwa at the recent high-level retreat at Swakopmund for availing affordable land in a fair and transparent manner to those in need, was able to achieve its feat by prioritising the needs of its residents while cutting out public-private partnerships (PPPs), which are usually exploited by speculators.
Oshakati Mayor Katrina Shimbulu said the town council’s decision to not engage in PPPs and to instead prioritise the needs of its poorer residents are among the factors that influenced their policy approach and planning. Shimbulu described PPPs as a ‘dangerous animal’, which deprives the poor majority of access to affordable land.
Minister Shaningwa praised Oshakati Town Council for responding to government’s call to address the country’s heightened housing backlog by availing serviced land to citizens at affordable prices.
Oshakati’s chief executive officer, Werner Iita, said what makes the town distinct from others is that it sells affordable land to those in need in a fair and transparent manner, unlike others town councils who are suspected of corrupt land deals. According to Iita, instead of charging N$135 per square metre, council discounted the market price by N$55 to allow low-income earners to acquire land at a mere N$80 per square metre.
“If we sell land at the service cost our low-income earners will not be able to afford it and we will not succeed in our quest to get rid of informal settlements.” With the discounted prices a large number of people will be able to acquire land,” Iita said.
Shimbulu said council sells a piece of land (minimum 350 square metres) for between N$20 000 and N$30 000 to low-income earners. This is in comparison to N$47 250 for a 350 square metre erf elsewhere in the country. She said the same could be said if council were engaged in PPPs, adding that once there is a PPP in place, land can no longer be discounted, because the private developers have to sell the land at market-related prices to recover the costs incurred when servicing the land.
“It’s better to service land using council’s fund than partnering. It’s better to sell discounted land to the residents, rather than selling virgin land to private developers, who will in turn sell the land at the market price,” Shimbulu stated. She further said while low-income earners can buy land at discounted prices, those with high-incomes are expected to pay market-related prices.
In the effort to address the massive housing backlog, Shimbulu said 1 371 plots at Ehenye are already being serviced as part of the government’s commitment to servicing 200 000 plots. In addition to the 1 371, 200 plots are being serviced at Okaku Kiipopo, an additional 1 800 plots at Ehenye and 2 000 at Ekuku, where 300 houses have already been constructed and occupied.
“This an indication that council is committed to providing affordable land to the needy, despite the constraints involved in doing so,” Shimbulu said.