GIPF, OPM seal deal on pension-backed home loan scheme

The Government Institutions Pension Fund (GIPF), in partnership with the Office of the Prime Minister, has signed a memorandum of agreement to roll out its long-awaited Pension Backed Home Loan Scheme (PBHLS).In a statement issued yesterday, the institutions confirmed the scheme will begin on 12 January 2026, giving eligible members the chance to use part of their pensions to secure housing.Under the scheme, members will be able to borrow up to one-third of their pension savings to buy land, build new homes, renovate existing properties or even transfer their current home loans to more affordable terms. Loans will be repayable at the repo rate plus 2.5%, which currently stands at 9.25% – significantly lower than most commercial mortgage rates.GIPF chief executive officer Martin Inkumbi explained that the PBHLS is structured to ensure members’ retirement benefits remain protected. “The scheme is designed in such a manner that active members’ retirement will not be negatively impacted at the time of retirement, as all outstanding loan amounts would have been repaid by then,” he said.Secretary to Cabinet, Emilia Mkusa, welcomed the move, saying it will bring financial security and peace of mind to civil servants. “The commencement of the PBHLS will enable qualifying civil servants to secure residential properties and provide safe places for their families and future generations,” she said.Only active members – those currently employed and contributing to the fund – will be eligible. Applications will be processed through employers’ human resources offices and administered by First Capital Treasury Solutions and Kuleni Financial Services. Members have been urged to remain patient as administrators finalise procedures in the coming months.Road to launchThe PBHLS has been in the making for nearly a decade. GIPF first approved the idea in 2016, followed by regulatory approvals in 2018 from the Office of the Prime Minister and Namfisa. Initial plans suggested the scheme would launch in 2021, but delays in finalising deduction codes and agreements pushed the roll-out further.In July this year, GIPF spokesperson Edwin Tjiramba confirmed that the fund was clearing final regulatory hurdles and highlighted the scheme’s affordability. He noted that the repo rate plus 2.5% interest is not only lower than the maximum allowed by law (repo plus 4%), but also cheaper than average commercial bank mortgage rates.“The key benefit is affordability,” Tjiramba said at the time. “Members will be able to access loans at around 9.25% interest compared to the higher rates in the open market. This could open the door to homeownership for thousands, especially in rural and underserved areas.”The bigger pictureDespite investments in plot servicing and housing projects, demand continues to outstrip supply. According to the GIPF’s 2024 annual report, the fund has already invested in the servicing of 5 884 plots, the construction of 7 840 housing units, and financed 3 286 home purchases through the First Capital Housing Fund.With an asset base of N$167 billion and over 97 000 active members contributing N$4.8 billion in the last financial year, GIPF has the financial muscle to support such initiatives. By using pensions as collateral, the PBHLS offers members a chance to break into homeownership without the steep hurdles of conventional loans.phillipus@nmh-hub.com.na

GIPF, OPM seal deal on pension-backed home loan scheme

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Namibian Sun 2026-02-03

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GIPF, OPM seal deal on pension-backed home loan scheme

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Namibian Sun 2026-02-03

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