Windhoek faces N$600m housing shortfall, N$256m road deficit

The City of Windhoek says it is facing major funding deficits in both housing delivery and road infrastructure, with shortfalls exceeding N$600 million for housing projects and a further N$256 million required to tar roads in formalised affordable housing areas.

City officials disclosed the funding gaps during a parliamentary standing committee on urban and rural development and land reform stakeholder engagement held in Rundu yesterday.

They said the City requires about N$1.3 billion to implement all planned housing projects for the current financial year but has been allocated only N$700 million by the urban and rural development ministry.

Of the total housing requirement, N$745 million is needed to formalise existing informal settlements, while N$227 million is required to decongest greenfield areas.

Budget constraints have already forced the City to scale back planned interventions, with only N$85 million currently available for greenfield decongestion.

Modest delivery

City officials said funding inconsistencies have complicated long-term planning and execution, despite modest delivery targets.

“The targets are modest, but funding is inconsistent,” one official said, adding that the uncertainty makes it challenging to align housing rollouts with infrastructure provision.

Windhoek’s housing programme forms part of a broader strategic plan initiated in 2021 to address housing backlogs and the rapid expansion of informal settlements.

The plan aims to deliver 12 000 housing opportunities through a phased approach, but officials stressed that success depends heavily on sustained and predictable support from the central government.

Without additional funding, residents are likely to continue facing delays in accessing formal housing and basic services.

City officials also flagged long-standing infrastructure challenges inherited from earlier affordable housing projects, in which gravel roads were built instead of tarred roads to reduce upfront costs.

While this approach enabled faster delivery of housing units, responsibility for maintaining and upgrading unpaved roads has since fallen to the municipality, placing growing pressure on its budget.

Strategic executive for housing, property management and human settlement, Faniel Maanda, told the committee that the City now faces an estimated N$256 million cost to tar roads in several formalised affordable housing areas.

“Gravel roads were the most affordable option at the time. But when local authorities take over, residents start to complain about dusty streets, blocked drains and other challenges," he said.

"Roads are the most expensive component of any development, and this issue has become a historical burden,” Maanda added.

Maanda said the City is implementing a multi-phase road-tarring programme, with phases eight to thirteen covering Wanaheda, Otjomuise, Goreangab, Hakahana and parts of formal Havana.

Special taxes

Completing these phases will require N$256 million, funding that the City cannot raise through rates and taxes alone.

According to Maanda, the Local Authorities Act allows municipalities to impose special taxes to recover infrastructure costs, but this mechanism can take years to generate sufficient funds.

He noted that many of the original housing developments were partially subsidised by central government to make them affordable, leaving the City to shoulder the long-term infrastructure costs.

“These were done by other stakeholders, and people now want the services. We could spend this money on other projects, but the central government must assist so that roads can be tarred once and for all,” Maanda noted.

He said inadequate road infrastructure affects access to electricity, schools, emergency services and public transport, undermining safety and quality of life in affected communities.

“We need a realistic approach. Affordable housing must also include safe, durable roads. Otherwise, the City absorbs the cost, and residents continue to live with challenges decades later,” Maanda said.

Sustained interventions

City officials also pointed to a pilot project demonstrating the potential of pooled funding.

The initiative, jointly funded by the City of Windhoek, the National Housing Enterprise (NHE) and the Kavango Regional Council, received more than N$100 million from the urban and rural development ministry, with the city and NHE each contributing N$17 million and the regional council adding between N$3 million and N$5 million.

Officials said the pilot shows how coordinated financing can accelerate housing delivery, but warned that such arrangements need to become more predictable and scalable to address Windhoek’s long-term housing and infrastructure needs.

Without sustained intervention, Maanda said residents in affordable housing areas will continue to face dusty and unsafe streets, undermining the original objectives of housing delivery.

“Tarring these roads is not optional; it is essential for the sustainability of our urban communities,” he said.

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