Bank Windhoek and the National Housing Enterprise (NHE) yesterday signed an agreement to mutually co-operate in providing housing opportunities to NHE clients, especially those in the low- and middle-income brackets, who would otherwise not be able to qualify for a mortgage from commercial banks.
The main objective of the partnership is to make housing more affordable and ultimately reduce the national housing backlog in Namibia, which is estimated to be around 110 000 and growing at an annual rate of 3 700 units.
The agreement is only limited to NHE housing projects in towns agreed upon from time to time.
Speaking at the signing ceremony, Christo de Vries, Managing Director of Bank Windhoek, said housing in Namibia is a national emergency and requires a concerted effort from all parties. “The government’s Mass Housing Programme aimed at constructing 185 000 houses by 2030 is admirable, but government needs the support of the private sector to make the programme a success.”
De Vries added that house prices were increasing rapidly, making it extremely difficult for people in the low- and middle-income brackets to afford a house. “Although the National Housing Enterprise provides affordable and quality housing to this income group, buyers still face difficulty to secure financing to buy their dream house. That is where we come in as a responsible financial institution, which believes that Namibia can only become a better country and enhance the quality and value of its citizens by working together. Like Bank Windhoek says, ‘Together we do better’.”
Financing will, however, be subject to the bank’s credit criteria, taking into consideration that these credit conditions should not put the prospective clients in an adverse position.
Vinson Hailulu, Chief Executive Officer of NHE, said: “In line with Vision 2030, NHE is committed to provide affordable and quality housing for all Namibians. In order to achieve this noble objective, NHE has taken a strategic decision to partner with private sector entities as envisaged in NDP4, within the framework of a public private partnership (PPP). This agreement with Bank Windhoek is a continuation of similar arrangements with other local financial institutions, in an effort to increase the supply of housing, so that the current sky-high house prices can stabilise in the long run.”