Since it attained independence in 1990, Namibia has had a shortage of affordable housing for low-income earners.
As at 2007, the National Housing Enterprise, a state-owned company charged with the responsibility of providing housing solutions faced a backlog of about 110, 000 housing units and the rate is growing annually by 3 700 units.
It is estimated that about 74 per cent of Namibian households cannot afford to buy houses as access to credit remains difficult.
The shortage of houses has also been attributed to the high unemployment rates and fast-rising price of houses.
The FNB Housing Index published in February indicated that the price of houses sky-rocketed by more than 80 per cent over the past five years.
The housing crisis continues to deepen as strategies employed to reduce the backlog are proving ineffective.
In a new project that attempts to provide a solution to the crisis, a USD 283 Mn housing project has been launched.
The project which aims to build more than 4 000 affordable houses within five years is a joint effort by different stakeholders. It is being funded by Development Bank of Namibia (DBN), Nedbank, Absa and Standard Bank.
The project launch was officiated by vice president Nangolo Mbumba.
Nedbank Namibia’s managing director, Lionel Matthews spoke during the groundbreaking and he said, “In the next five years, 4 500 families will have moved into their new homes, with another 25 000 homes which will blossom and come alive with excited new homeowners in the next two decades.”
Featured Image Courtesy: Karmod