Since last year, the International Finance Corporation (IFC) has partnered with Pan-African finance organisation Letshego Bank Namibia (LBN) to increase access to affordable housing finance for thousands of individuals in Namibia.
LBN’s country chief executive officer Ester Kali said the initiative started in December last year and interest from the public, especially state-owned enterprises, has been overwhelming up to now.
IFC’s US$30 million financing facility will extend access to affordable housing finance for over 4 000 Namibians. Although 78% of Namibians have a bank account, only 12% of households have mortgage-financed homes. Kali said the majority of Namibians do not qualify for mortgages from commercial banks as sought-after properties are often unaffordable.
LBN has already successfully registered two bonds at the Windhoek Deeds Office and land reform ministry on 7 December 2021. Applications can be made at any of the local branches, from where the assessment process starts.
“Our strategic purpose is clear; we want to improve lives across the communities where we operate. Increasing access to simple and appropriate financial solutions for more individuals will enable us to deliver on this promise. By partnering with global institutions like IFC, who share our vision of achieving social impacts through sustainable commercial strategies, we can unlock exponential value and potential for us to do more,” she stated.
Kali added: “This is truly an exciting partnership, and indeed the year of reimaging where we are shifting gears in the delivering of our products and services to you, our valued customer”.