GIPF: Pension-backed home loan scheme nearing finalisation

The Government Institutions Pension Fund (GIPF) has reiterated plans to roll out its long-anticipated pension-backed housing loan scheme later this year, a move expected to ease access to housing finance for its members nationwide.The announcement followed a courtesy visit by the GIPF executive team to Kavango West governor Verna Sinimbo earlier this week as part of the fund’s ongoing regional engagement efforts.The governor's office noted in a press statement that one of the key topics discussed during the meeting was the upcoming housing initiative. The scheme will enable GIPF members to access part of their pension benefits to buy or build a home, a progressive model that offers more flexible financing, particularly for those in rural or underserved areas.Plans nearing finalisationThe initiative, first announced by GIPF in 2022, is scheduled to be implemented through its subsidiary, Kuleni Financial Services, in collaboration with First Capital Treasury Solutions, which will serve as the fund manager.GIPF spokesperson Edwin Tjiramba confirmed the initiative to Namibian Sun yesterday, saying the plans are nearing finalisation.“The CEO just mentioned to the governor that it is something that is almost coming close to being concluded,” Tjiramba told Namibian Sun.“That’s all we can tell you at this time. If one shares anything more at this point, it will be very premature.”Tjiramba added that details on the budget and rollout specifics will only be shared once a memorandum of understanding is signed and formal processes are complete.Previous reports by Namibian Sun indicated that the loan scheme will offer interest rates that are 0.75% lower than those charged by commercial banks. The funding will be used to acquire plots, build homes, and undertake renovations or repairs on existing properties.GIPF has emphasised that the scheme is designed to bridge the housing finance gap for its members and support national housing development efforts.During the visit, Sinimbo applauded the fund’s initiatives and recommended increased awareness campaigns to ensure that members, both current and prospective, are fully informed about their benefits, especially as new schemes are introduced.She further applauded GIPF’s efforts in serving its members and contributing to national development, describing the meeting as a testament to the government's dedication to delivering services that meet the needs of the people.Billions in contributionsGIPF had 97 512 active members in the 2023 financial year, who contributed N$4.8 billion in contributions, representing a 3% increase over the previous year. The benefit payments, however, fell by 9% to N$6.3 billion.GIPF's asset base was valued at N$167 billion during the 2023/2024 financial year, with investments managed by investment managers totalling N$117.1 billion.The other N$10.1 billion was held as direct investments, while N$40 billion was allocated to the GIPF Treasury Portfolio.The Fund also saw its return on investment increasing by 13.2% to N$18 billion, compared to N$6.5 billion recorded in the previous financial year. The GIPF board approved the pension-backed home loans about three years ago, with the former GIPF CEO David Nauyoma saying the Fund was awaiting deduction codes from the finance ministry and a Memorandum of Understanding (MoU) with the government.The GIPF 2024 annual report says the Fund invested in the servicing of 5 884 plots, built 7 840 housing units, and financed 3 286 house purchases through the First Capital Housing Fund. phillpius@nmh-hub.com.na

GIPF: Pension-backed home loan scheme nearing finalisation

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Namibian Sun 2025-06-20

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GIPF: Pension-backed home loan scheme nearing finalisation

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Namibian Sun 2025-06-20

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