While the Government Institutions Pension Fund’s (GIPF’s) much-anticipated Pension Backed Home Loan Scheme (PBHLS), which commenced yesterday, has generally been welcomed as a noble initiative, it has received mixed reactions from civil servants and has raised pertinent questions about communal lands rights registration.
Last year GIPF announced it had committed up to N$900 million to help its members buy, build homes or renovate their homes.
The Scheme will be administered by two administrators, namely First Capital Treasury Solutions (FCTS) and Kuleni Financial Services (PTY) Ltd. Kuleni, a GIPF subsidiary, is expected to handle 65% of the administrative workload, with First Capital Housing Scheme managing the remaining 35%. GIPF management had clarified that the capital committed is coming from GIPF, with the two administrative entities solely tasked with administration.
The housing initiative is expected to ease the burden for thousands of civil servants, many of whom have historically struggled to qualify for traditional home loans through commercial banks.
“I think the GIPF housing scheme that comes from our pension is a really good idea, as long as it is used properly and there are clear control measures in place.
For me, it makes sense because it can help me improve my traditional house while I still have time before retirement, especially if I plan to retire at 55. Doing the bigger upgrades now means that when I reach retirement, I can use my pension to take care of smaller things and actually enjoy my retirement instead of stressing about unfinished projects,” commented a civil servant.
Another civil servant commented that “As a civil servant l don’t get why GIPF is loaning us our own money, which is also going to be taxed at retirement. l think they are only supposed to charge a facilitation fee.”
A third civil servant preferring anonymity asked that “What are the loan repayment duration and interest rates? And why is there interest on my own money? Also, regarding the approved contractors they are referring to, how will people who want to build in rural areas manage?”
Lukas Mbangula, a land-law enthusiast, recently pointed out that the GIPF housing scheme does little to address the fundamental challenges of communal land rights registration in Namibia.
“It overlooks capacity constraints, legal frameworks, and resistance from traditional authorities, which delay registration. Consequently, the scheme’s potential to advance communal land rights is limited and may even highlight disparities in land security across Namibia.
To accelerate registration, the government should focus on strengthening administrative capacity, overcoming legal and political resistance, and fostering inclusive processes—rather than subsidising individual loans via pension schemes,” Mbangula commented.
Meanwhile, GIPF members wishing to apply through Kuleni Financial Services (PTY) Ltd can obtain, complete and submit application forms via their respective Human Resources (HR) Offices or via the Kuleni Financial Services website. GIPF spokesperson, Edwin Tjiramba, explained that all completed forms should be submitted together with all required documents, such as the members GIPF benefit statement, certified copy of the members Identity Document, a copy of the latest payslip, copy of proof of property ownership or allocation, and signed quotations.
“To access the PBHLS through First Capital Treasury Solutions, GIPF members can obtain and complete the prescribed application form at the FCTS offices in Windhoek, Ondangwa, Katima Mulilo, and Swakopmund, or through the online portal available on their website”, Tjiramba stated.
The required supporting documentation, includes certified ID copy, copy of the latest payslip, three months banking statement, GIPF benefit statement, Home Owners Scheme for Staff Members (HOSSM booklet), tax certificate and proof of residence. Property documentation is not mandatory at the pre-approval initial assessment stage but recommended where available.
Furthermore, members may access their benefit statements via the member portal on the GIPF website to ensure their qualifying amounts corresponds with their latest income. The housing scheme is currently only available to active members (members who are currently employed by government and contributing monthly towards their pension and members on disability.
Other participating employers of the GIPF such as State-Owned Enterprises and Mission Hospitals will be advised in due course when the scheme will be available to them as GIPF and the said employers are finalising various memoranda of agreement.
By law, Pension Fund Regulations state that all loans will be charged a variable interest rate equivalent to the prevailing Repo rate plus 2.5%. In the case of the GIPF Pension Backed Home Scheme, the interest rate is currently set at 6.5% plus 2.5%, which brings the interest rate to 9.0%.
Variable interest rate means that should the repo rate change by either being lowered or increased by the Bank of Namibia, the interest rate charged to the member will be adjusted accordingly.
The PBHLS is designed in such a manner that active members retirement will not be negatively impacted at the time of retirement, as all outstanding loan amounts would have been repaid by the time the member reaches their retirement.
