Minister questions NHE’s role, wants 10 000 homes annually
Urban and Rural Development minister Sankwasa James Sankwasa has unleashed a scathing critique of the National Housing Enterprise (NHE), questioning its very relevance and warning that the institution risks failure if it does not drastically accelerate delivery.
Handing over 52 houses built by NHE at a cost of N$12.2 million in Okakarara, Otjozondjupa Region, on Thursday, Sankwasa said he is struggling to locate the enterprise’s impact in Namibia’s housing scheme and called double efforts.
“At the beginning of my term, I directed the NHE to give me at least two thousand houses for this year. I have not received any feedback until now. That is what happens,” he said.
He stressed that his directive for 2,000 houses excluded those already at the foundation stage, such as the units handed over in Okakarara. “And that two thousand did not include those already at the foundation stage like the ones we have today. It was meant to be a completely new set. So, when I evaluate that two thousand, it will not include these that are officially opened and inaugurated,” he said.
Sankwasa pointed to the NHE Act of 1993, saying the institution exists to finance and deliver housing to Namibians. “Section Three of the National Housing Enterprise Act, Act 5 of 1993, as amended, stipulates, and I quote: ‘The object of the NHE shall be the financing of housing for inhabitants of Namibia.’ That is the first reason it was established: to finance housing for the inhabitants of Namibia. Not Standard Bank. Not FNB. NHE must finance,” he said.
The minister further questioned the pace at which NHE is moving towards its objectives. “When there is an acute shortage of accommodation, and the government went and established an institution to address that need, how fast is NHE driving towards that target? Is it driving at 40 km per hour? Is it driving at 100 km per hour? At what speed? That is the question I live with regarding NHE,” he said.
Sankwasa warned that failure to deliver undermines the purpose of the institution. “Failure to achieve its objective raises the question: why should it continue existing if the objectives are not achieved? I therefore call upon NHE to adopt an aggressive approach and double its efforts,” he said.
He made it clear that the bar has been raised for the enterprise. “Given this, I expect NHE to be constructing at least 10,000 houses annually,” he declared.
NHE’s spokesperson Mutonga Matali did not immediately respond to questions sent to him.
About two months ago, the Namibian Sun reported that the NHE, which has built approximately 18,300 houses in 31 years, is no longer in a position to roll out capital projects. This was revealed in a memo dated 16 July by chief financial officer Beverly Vugs, who warned the executive committee that the company’s overall financial position is unstable and that it faces significant challenges with liquidity and cash flow.
“The memo serves to inform Exco that NHE is experiencing serious challenges with liquidity and cash flow,” she wrote, adding that loan repayments are insufficient to cover operational expenditure, fuel growth, or initiate new projects.
Vugs further revealed that the company had spent as much as N$500,000 on site handover events in the past, describing such costs as an unnecessary strain on finances. While pledging to cut back on these, she warned of other instances of financial waste. “It is absolutely imperative that every member of Exco fully grasps the severe financial reality confronting NHE. The era of government bailouts for Public Enterprises is unequivocally over; our core mandate now demands that we generate sufficient revenue to sustain our own operations,” she stressed.
She described the company’s year-to-date results as “deeply troubling,” citing slow progress in construction, sales, and transfers, and warned that NHE had repeatedly missed its quarterly targets.
Although NHE is still able to meet obligations to third parties, Vugs warned that the outlook remains bleak, attributing much of the financial strain to clients’ inability to afford houses. She concluded that “radical financial discipline and strategic reprioritisation” are urgently required, cautioning that recapitalisation for the 2025/26 financial year is far from guaranteed.
Matali at the time confirmed the authenticity of the memo. “The caution issued by the CFO forms part of our normal procedures to regulate our day-to-day operations and ensure that special emphasis is placed on the delivery of houses in line with the NHE mandate. It’s no cause for alarm and I can assure you that salaries will be paid on time as usual," Matali said.
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Handing over 52 houses built by NHE at a cost of N$12.2 million in Okakarara, Otjozondjupa Region, on Thursday, Sankwasa said he is struggling to locate the enterprise’s impact in Namibia’s housing scheme and called double efforts.
“At the beginning of my term, I directed the NHE to give me at least two thousand houses for this year. I have not received any feedback until now. That is what happens,” he said.
He stressed that his directive for 2,000 houses excluded those already at the foundation stage, such as the units handed over in Okakarara. “And that two thousand did not include those already at the foundation stage like the ones we have today. It was meant to be a completely new set. So, when I evaluate that two thousand, it will not include these that are officially opened and inaugurated,” he said.
Sankwasa pointed to the NHE Act of 1993, saying the institution exists to finance and deliver housing to Namibians. “Section Three of the National Housing Enterprise Act, Act 5 of 1993, as amended, stipulates, and I quote: ‘The object of the NHE shall be the financing of housing for inhabitants of Namibia.’ That is the first reason it was established: to finance housing for the inhabitants of Namibia. Not Standard Bank. Not FNB. NHE must finance,” he said.
The minister further questioned the pace at which NHE is moving towards its objectives. “When there is an acute shortage of accommodation, and the government went and established an institution to address that need, how fast is NHE driving towards that target? Is it driving at 40 km per hour? Is it driving at 100 km per hour? At what speed? That is the question I live with regarding NHE,” he said.
Sankwasa warned that failure to deliver undermines the purpose of the institution. “Failure to achieve its objective raises the question: why should it continue existing if the objectives are not achieved? I therefore call upon NHE to adopt an aggressive approach and double its efforts,” he said.
He made it clear that the bar has been raised for the enterprise. “Given this, I expect NHE to be constructing at least 10,000 houses annually,” he declared.
NHE’s spokesperson Mutonga Matali did not immediately respond to questions sent to him.
About two months ago, the Namibian Sun reported that the NHE, which has built approximately 18,300 houses in 31 years, is no longer in a position to roll out capital projects. This was revealed in a memo dated 16 July by chief financial officer Beverly Vugs, who warned the executive committee that the company’s overall financial position is unstable and that it faces significant challenges with liquidity and cash flow.
“The memo serves to inform Exco that NHE is experiencing serious challenges with liquidity and cash flow,” she wrote, adding that loan repayments are insufficient to cover operational expenditure, fuel growth, or initiate new projects.
Vugs further revealed that the company had spent as much as N$500,000 on site handover events in the past, describing such costs as an unnecessary strain on finances. While pledging to cut back on these, she warned of other instances of financial waste. “It is absolutely imperative that every member of Exco fully grasps the severe financial reality confronting NHE. The era of government bailouts for Public Enterprises is unequivocally over; our core mandate now demands that we generate sufficient revenue to sustain our own operations,” she stressed.
She described the company’s year-to-date results as “deeply troubling,” citing slow progress in construction, sales, and transfers, and warned that NHE had repeatedly missed its quarterly targets.
Although NHE is still able to meet obligations to third parties, Vugs warned that the outlook remains bleak, attributing much of the financial strain to clients’ inability to afford houses. She concluded that “radical financial discipline and strategic reprioritisation” are urgently required, cautioning that recapitalisation for the 2025/26 financial year is far from guaranteed.
Matali at the time confirmed the authenticity of the memo. “The caution issued by the CFO forms part of our normal procedures to regulate our day-to-day operations and ensure that special emphasis is placed on the delivery of houses in line with the NHE mandate. It’s no cause for alarm and I can assure you that salaries will be paid on time as usual," Matali said.
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