NHE defends its relevance amid minister’s scathing critique
The National Housing Enterprise (NHE) has defended its continued existence after urban and rural development minister Sankwasa James Sankwasa questioned its relevance and warned the institution risks failure if it does not drastically improve its housing delivery.
Handing over 52 houses built by NHE at a cost of N$12.2 million in Okakarara last week, Sankwasa said he struggled to see the enterprise’s impact on Namibia’s housing crisis and demanded greater urgency.
“At the beginning of my term, I directed NHE to give me at least 2,000 houses for this year. I have not received any feedback until now. That is what happens,” he said.
He stressed that his directive excluded projects already underway, such as the houses inaugurated in Okakarara.
“And that 2,000 was meant to be a completely new set. So, when I evaluate that 2,000 houses, it will not include these that are officially opened and inaugurated,” he said.
Citing the NHE Act of 1993, the minister reminded the parastatal of its founding purpose.
“Section Three of the National Housing Enterprise Act, Act 5 of 1993, as amended, stipulates: ‘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 Namibians. Not Standard Bank. Not FNB. NHE must finance,” he stressed.
Sankwasa further questioned whether NHE was moving quickly enough to meet 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,” he said.
The minister warned that failure to deliver undermines the enterprise’s mandate.
“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, adding that he expects at least 10,000 houses to be built annually.
NHE pushes back
Responding to the criticism, NHE spokesperson Mutonga Matali said the company has committed to constructing 2,000 units by April 2026 under the Informal Settlement Upgrading Programme (ISUP), a government initiative targeting the housing backlog.
He added that NHE plans to deliver 905 houses during the 2025/26 financial year in addition to its ISUP contribution.
“The ISUP has already started in Swakopmund with 115 units under construction, while 149 houses are being developed in Walvis Bay. NHE is currently collaborating with local authorities in Outapi, Ondangwa, Ongwediva, Rundu, Windhoek, Swakopmund, Walvis Bay, Nkurenkuru, Henties Bay and Oshakati,” he said.
The programme, he noted, includes servicing plots and offering affordable repayment options, such as N$400 per month for a one-bedroom house. “The model has already been implemented successfully in Windhoek and is being rolled out to other centres such as Otjiwarongo, Walvis Bay, Swakopmund, Oshakati and Lüderitz.”
Financial strain
About two months ago, Namibian Sun reported that the NHE – which has built around 18,300 houses in 31 years – is no longer in a position to roll out capital projects due to financial instability.
In a 16 July memo, chief financial officer Beverly Vugs warned that the enterprise faces serious challenges with liquidity and cash flow.
“Loan repayments are insufficient to cover operational expenditure, fuel growth, or initiate new projects,” she wrote, urging the executive committee to cut back on financial waste, including more than N$500,000 previously spent on site handover events.
“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,” Vugs cautioned.
Handing over 52 houses built by NHE at a cost of N$12.2 million in Okakarara last week, Sankwasa said he struggled to see the enterprise’s impact on Namibia’s housing crisis and demanded greater urgency.
“At the beginning of my term, I directed NHE to give me at least 2,000 houses for this year. I have not received any feedback until now. That is what happens,” he said.
He stressed that his directive excluded projects already underway, such as the houses inaugurated in Okakarara.
“And that 2,000 was meant to be a completely new set. So, when I evaluate that 2,000 houses, it will not include these that are officially opened and inaugurated,” he said.
Citing the NHE Act of 1993, the minister reminded the parastatal of its founding purpose.
“Section Three of the National Housing Enterprise Act, Act 5 of 1993, as amended, stipulates: ‘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 Namibians. Not Standard Bank. Not FNB. NHE must finance,” he stressed.
Sankwasa further questioned whether NHE was moving quickly enough to meet 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,” he said.
The minister warned that failure to deliver undermines the enterprise’s mandate.
“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, adding that he expects at least 10,000 houses to be built annually.
NHE pushes back
Responding to the criticism, NHE spokesperson Mutonga Matali said the company has committed to constructing 2,000 units by April 2026 under the Informal Settlement Upgrading Programme (ISUP), a government initiative targeting the housing backlog.
He added that NHE plans to deliver 905 houses during the 2025/26 financial year in addition to its ISUP contribution.
“The ISUP has already started in Swakopmund with 115 units under construction, while 149 houses are being developed in Walvis Bay. NHE is currently collaborating with local authorities in Outapi, Ondangwa, Ongwediva, Rundu, Windhoek, Swakopmund, Walvis Bay, Nkurenkuru, Henties Bay and Oshakati,” he said.
The programme, he noted, includes servicing plots and offering affordable repayment options, such as N$400 per month for a one-bedroom house. “The model has already been implemented successfully in Windhoek and is being rolled out to other centres such as Otjiwarongo, Walvis Bay, Swakopmund, Oshakati and Lüderitz.”
Financial strain
About two months ago, Namibian Sun reported that the NHE – which has built around 18,300 houses in 31 years – is no longer in a position to roll out capital projects due to financial instability.
In a 16 July memo, chief financial officer Beverly Vugs warned that the enterprise faces serious challenges with liquidity and cash flow.
“Loan repayments are insufficient to cover operational expenditure, fuel growth, or initiate new projects,” she wrote, urging the executive committee to cut back on financial waste, including more than N$500,000 previously spent on site handover events.
“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,” Vugs cautioned.
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