RUNDU – The town of Rundu during the last year saw an investment injection of N$298 million through the construction of more than 500 houses.
These houses were constructed by private investors.
This was revealed by Kavango East governor Bonifatius Wakudumo during his state of the region address when he gave an account of how the regional government performed in 2021 and further outlined the priority areas of the current financial year (2022/2023).
“The town of Rundu has witnessed intensified private sector investment in housing infrastructure development,” he said.
The Helmsman Group, owned by Chinese developer Stina Wu, constructed about 320 houses, at a cost of N$208 million.
“Another developer, Armstrong Properties CC has built 150 houses at a cost of N$72 million during the period under review and created 250 temporary jobs,’’ Wakudumo said during the state of the region address.
In 2021, Acemac Construction CC constructed 41 houses at a cost of over N$18 million.
However, on the issue of affordability of these new houses, home-grown analyst Gerson Sindano, on the sideline of the SORA, said these houses are not affordable as they are highly priced above the housing subsidy that ordinary public service employees receive who are mainly the project’s clients.
Sindano noted that these houses are sold at exorbitant prices from N$950 000 and developers make 100% profit.
“If you look at the government’s housing scheme, the majority of employees here are teachers and nurses and now if the housing scheme is about N$700 000 and the houses are being sold for N$950 000 – N$980 000. Where will they get money to top up?’’ he asked.
“So that is where the fundamental problem is, the salaries have been stagnant, housing subsidy has been stagnant but the prices of houses have been increasing.”
The governor, during his address, further informed the region and nation at large that the Rundu Town Council has also made significant progress in land development.
He referred to the formalisation of Sauyemwa Extension 11, Ndama Extension 14, Kaisosi Extension 12 which is completed at a cost of N$1.4 million. In this regard, 1 033 erven have been surveyed.
“Two boreholes were drilled in Ndama settlement at a cost of N$499 537 that will benefit 10 000 households,’’ he noted.
Construction of one freezer and one cool room at Tandaveka Open Market were completed at a cost of N$451 154.
Wakudumo also highlighted that the town council purchased a refuse compactor truck for refuse removal at a cost of N$1.7 million, an investment aimed at fighting waste management challenges that have been an issue for years.