By Nuusita Ashipala

ONDANGWA -The Government Institutions Pension Fund (GIPF) yesterday signed a N$20 million investment deal with the Ondangwa Town Council to service land for the construction of 300 houses.

The deal, which is facilitated through First Capital Housing Fund, is an addition to the N$90 million that GIPF invested in the development of Gwashamba Mall.

The loan is expected to be paid back in 10 years inclusive of the one-year grace period.

Speaking at the signing ceremony, the GIPF Chief Executive Officer (CEO) David Nuyoma said the deal which had just been sealed falls under the GIPF Unlisted Investment Policy. The policy was introduced five years ago as a meaningful contribution to the economy and the development needs of communities with eminent potential growth.

“The fund wishes to see domestic savings being converted into investments for broad-based economic development and improvement of our people’s quality of life,” said Nuyoma.

In addition to the GIPF’s social responsibility programme, GIPF  also recently introduced a housing loan scheme for GIPF members, particularly low-income earners who have been unable to access housing finance.

“In our views these interventions have stimulated both the supply and demand levels in the housing market,” said Nuyoma.

Ondangwa Chief Executive Officer Martin Elago said the loan agreement would bridge the gap in the mismatch between demand and supply of land.

Elago said the council was challenged by slow land delivery, high demand for serviced land, the short supply of land, council’s low resource capacity in servicing  land and government bureaucracy in land delivery.

The CEO of First Capital Housing Fund, Martin Mwinga, said the Ondangwa Town Council “is the best monetary-run council”, adding that he had confidence the money would be put to good use.

Elago said the tender for servicing land has already been advertised and promised that every cent of the GIPF investment would be accounted for.