Against a backdrop of rising house prices, limited supply, and stretched household incomes, 20Twenty Financial Solutions aims to reshape how housing finance works for ordinary Namibians. This is at a time when, for many Namibians, owning a home remains a distant goal.
20Twenty Financial Solutions, Namibian home loan finance specialists, have issued their first sustainability-linked note, following the launch of its Sustainability-Linked Finance Framework (SLFF) in October 2025. The transaction, supported by RMB Namibia as arranger, Namibia Stock Exchange (NSX) as debt sponsor, and sustainability coordinator, marks a milestone not only for the company but also for Namibia’s growing sustainable finance market.
More than a capital-raising exercise, the note issuance reflects a broader shift in investor thinking, which comprises a rising demand for financial instruments that deliver returns while also addressing social challenges. For 20Twenty, the note provides funding to scale its inflation-linked home loan model, which offers borrowers greater predictability and a faster path to debt-free homeownership.
What sets the note apart is that it is directly tied to measurable social outcomes. The SLFF embeds targets focused on expanding housing finance to first-time buyers and women, two groups that remain under-represented in the formal mortgage market. Progress against these targets will be measured and reported on annually. The framework was independently reviewed by SLR Consulting (Africa), which confirmed its alignment with recognised sustainability-linked finance principles.
“This issuance represents more than a funding milestone for 20Twenty,” said Gideon Cornelissen, chief executive officer of 20Twenty Housing Solutions.
It signals that investors recognise both the financial strength of our model and the importance of linking capital to meaningful social outcomes. As we grow, the framework ensures we remain accountable to the people and communities we serve,” he added.
The timing of the issuance is significant as Namibia’s housing sector remains under intense pressure, particularly in urban centres. It is estimated that Windhoek alone faces a housing backlog of around 300 000 units, with more than N$70 billion required to close the gap. Years of undersupply have pushed rental prices sharply higher, with two-bedroom flats in the capital averaging more than an astronomical N$7 000 a month in 2024. Housing pricing and rental increases have, in recent years, outpaced domestic inflation and wage growth.
By late 2025, the average house price in Namibia stood at about N$1.38 million, placing formal homeownership beyond the reach of many households. While prices vary across the 14 regions, central areas such as Windhoek remain the most expensive, while southern regions, though cheaper, offer fewer opportunities and limited market activity.
These pressures are mirrored in the credit market, where mortgage lending growth has been subdued, as rising construction costs, limited affordable housing stock, and weak income growth constrain demand. Many households simply do not qualify for conventional home loans, reinforcing historical inequalities in access to housing finance.
Meanwhile, official data highlights the scale of Namibia’s housing challenge. Around 63% of households own their homes outright, without a mortgage, while only a small proportion rely on mortgage-linked ownership. Renters account for roughly 14% of households, and in urban areas, close to 40% of residents live in informal housing, underscoring the limited reach of formal housing delivery and finance systems.
It is within this context that 20Twenty’s sustainability-linked note is relevant, as it is only the second sustainability-linked note in Namibia and the first to be inflation-linked, reinforcing the company’s focus on loan products that adjust with economic conditions and reduce long-term risk for borrowers.
Through its Domestic Medium Term Note Programme (DMTNP), 20Twenty allows investors to gain exposure to residential, secured housing debt, helping channel capital directly into the housing market. The social performance targets embedded in the note are expected to appeal to impact-focused investors looking for measurable outcomes alongside financial returns.
For RMB Namibia, the transaction reinforces its role in developing Namibia’s sustainable finance ecosystem.
“This transaction shows how sustainability-linked instruments can be practically applied to support really economic and social outcomes. At the same time, it helps deepen Namibia’s capital markets,” said Monet Basson, transactor at RMB Namibia.
Moreover, the broader implications extend beyond a single issuance with conventional mortgage finance remaining out of reach for most Namibians. In this light innovative private-sector solutions are increasingly seen as a necessary complement to public housing. This is an alternative financing models, collective buying schemes and tailored loan products are gaining traction in what is generally considered a quite conservative property market.
As Namibia continues to balance rapid urbanisation, affordability constraints and structural land and credit challenges, transactions like 20Twenty’s sustainability-linked note highlight a growing convergence between capital market development and social impact.
-ebrandt@nepc.com.na
