New Era (Windhoek)

20 November 2012

Namibia: FNB and NHE Ink Partnership Agreement

Windhoek — First National Bank (FNB) Namibia and the National Housing Enterprise (NHE) have signed a long-term partnership agreement for the financing of affordable houses for low-income groups.

According to the agreement, NHE will finance infrastructure servicing, while FNB will provide the end user finance for the purchase of the houses. The first houses to be built under the agreement will commence shortly in Otjomuise.

FNB Namibia's chief executive officer Ian Leyenaar said the agreement would enable NHE to recoup its investment much quicker and allow them to redeploy development capital elsewhere and thereby accelerate land delivery and the provision of houses at affordable prices.

"The provision of adequate housing is a huge and escalating challenge in Namibia, particularly at the lower end of the market, and it remains very difficult for people with low income to own their own houses. Namibia is faced with an acute shortage of housing, which is the result of almost a decade of inadequate land delivery," said Leyenaar at the signing of the agreement yesterday in Windhoek.

He said it is important for government and the financial sector to work together in finding creative and sustainable ways to allow the majority of people to purchase properties, adding that innovative and creative ideas are needed to address the country's dire housing needs and to make Vision 2030 possible.

Leyenaar said the successful implementation of the plan will enable Namibia by 2030 to have far greater and more adequate housing with water and sanitation facilities for all Namibians in both urban and rural areas. He added that it would also allow a far greater proportion of the Namibian population to own houses that are safe and conducive.

"It is therefore a pleasure for me to inform you that both parties have agreed to commence with the Otjomuise development project - and it is our hope that this is only the first of many projects stemming from this relationship that will continue to bear fruits for the good of the nation going forward," Leyenaar concluded.

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