Govt alone cannot solve housing crisis – Witbooi

Vice President Lucia Witbooi last week warned that government alone cannot resolve Namibia’s housing demand crisis as the country’s population continues to grow.

She stressed the need for collaboration between the public and private sectors, as well as regional and local authorities, financial institutions, civil society and communities.

Witbooi said the Government Institutions Pension Fund (Gipf) pension-backed home loan scheme demonstrates how innovation within existing institutional frameworks can expand access to housing while enabling citizens to invest in their future.

“The introduction of this scheme marks a significant milestone in our collective efforts to enhance the welfare and financial security of public servants," she said.

The Gipf scheme allows members to access a portion of their pension savings for the purpose of acquiring, building or improving a home.

"The scheme unlocks opportunities that were previously beyond reach for many households,” Witbooi said during the launch of the loan scheme in Mariental on Wednesday.

Witbooi added that the scheme also allows members to build their retirement homes in unproclaimed areas.

"This measure recognises the realities faced by many Namibians, particularly those who maintain strong ties to their rural communities. It broadens the scope of housing opportunities while supporting balanced and inclusive spatial development across both urban and rural areas," she said.

Economic impact

Beyond its direct benefits to individual households, the scheme addresses the broader objectives of the country’s sixth National Development Plan (NDP6), the vice president added.

Witbooi pointed out that increased access to housing finance stimulates the construction sector, creates employment and strengthens economic participation as well as addressing the national housing backlog.

“Initiatives such as this strengthen the entire affordable housing value chain, from land servicing and infrastructure development to financing mechanisms. This enables ordinary Namibians to realise their dream of home ownership."

Witbooi commended projects such as Mariental Extension 6, developed by Dynamo Property Developers.

She said the planned development of 311 modern and affordable houses for the Hardap region, with 87 houses already under construction, is a positive step towards expanding housing opportunities in the region.

Homes protected

Gipf members who access housing finance through the new pension-backed home loan scheme will not face repossession of their homes, even if they are unable to repay the loan in full by the time they retire, the fund has confirmed.

Two months ago, Gipf chief executive Martin Inkumbi said the scheme is deliberately structured to protect members’ homes while remaining compliant with pension fund legislation.

“In the case of this member not being able to pay, they just forgo the one-third portion [of their pension] on retirement,” Inkumbi said while speaking recently on NTV's The Agenda, emphasising that the property itself remains untouched and registered in the member’s name.

"Two-thirds are still there for them to receive monthly. The one-third, which would normally be the lump sum, is forfeited if it was used to buy or build a home. But at least the member keeps the house and their title deed,” Inkumbi explained.

He added that the measure addresses public concerns that the scheme could inadvertently push members into debt with commercial banks.

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