Housing Policy
and Delivery in Namibia
By Els Sweeney-Bindels
Institute for Public Policy Research
Funded by the Netherlands Embassy in Pretoria through the Netherlands Consulate in Windhoek
Acknowledgements
The Institute of Public Policy Research would like to thank the Netherlands Embassy in Pretoria working through the
Netherlands Consulate in Windhoek for making this research and publication possible. In addition, we would like to thank
all stakeholders in the housing sector in Namibia, who have contributed generously with their time and expertise during
interviews, the consultative workshop and through reviewing the draft report. Furthermore, we would like to express
gratitude for the contribution of housing researcher and IPPR Research Associate Namene Kalili for his expert insights into
the topic of housing finance and for Taimi Itembus contribution in assisting in the research project.
1
Table of Contents
Abbreviations 2
Executive Summary 3
1. Introduction 5
2. Background to Housing in Namibia 6
3. Policy and Regulatory Environment 10
4. Housing programmes in Namibia 16
5. Research findings 23
6. Conclusions 27
7. Recommendations 29
Bibliography 35
Annex I: Interviewed Stakeholders 36
Annex II: Participants of Consultative Workshop 37
Overview of Tables and Figures
Tables
Table 1: Distribution of households by type of tenure 6
Table 2: Governments targets on housing 13
Table 3: Savings Shack Dwellers Federation of Namibia 20
Table 4: Loans Shack Dwellers Federation of Namibia 20
Table 5: Summary of governments targets on housing 23
Table 6: Overview of government contribution to programmes 24
Table 7: Recommendations and relevant actors 29
Figures
Figure 1: Distribution of households by type of housing unit in Namibia 7
Figure 2: Distribution of households by type in rural and urban areas 7
Figure 3: Overview of housing backlog, income and population 7
Figure 4: Basic overview of the housing market 8
Figure 5: Mortgage, Prime and Repo rate since 2006 8
Figure 6: Overview of policies and regulations related to housing 10
Figure 7: Housing budget as a percentage of total Government expenditure 14
Figure 8: Budget for MRLGHRD as a percentage of total expenditure 15
Figure 9: Government income from housing 15
Figure 10: Key stakeholders in housing delivery in Namibia 16
Figure 11: Government expenditure on housing programmes 1990/1991 2010/2011 17
Figure 12: Housing delivery by NHE 1990 - 2007 18
Figure 13: Supply and demand of housing 25
Boxes
Box 1: Otji-Toilet 19
Box 2: High density housing in Addis Ababa, Ethiopia 31
Box 3: The Individual Housing Subsidy Scheme in South Africa 32
Box 4: Rent to Buy schemes 32
Box 5: Solar Power in Namibia 33
Box 6: Integration through private sector involvement 33
2
Abbreviations
BT Build Together
FNB First National Bank
GIPF Government Institutions Pension Fund
GRN Government of the Republic of Namibia
HRDC Habitat Research and Development Centre
IPPR Institute of Public Policy Research
K-Brick Kavango Brick
LA Local Authority
MRLGHRD Ministry of Regional and Local Government, Housing and Rural Development
MTEF Medium Term Expenditure Framework
NDP National Development Plan
NHAC National Housing Advisory Committee
NHAG Namibia Housing Action Group
NPC National Planning Commission
RC Regional Council
SDFN Shack Dwellers Federation of Namibia
3
Executive Summary
The Namibian government identified housing as a
priority area in 1990 and considers housing as both an
enabler of economic growth and a tool for reducing
poverty by creating sustainable communities. A
National Housing Policy has been in place since 1991
and this was reviewed and updated in 2009. Despite
the many components provided in the policy and the
awareness of the issues within government, few
elements of the policy have been taken forward and
little has been achieved in the last twenty years to clear
the backlog in housing.
Government targets consist of a plethora of statements
in different policy documents and announcements.
Most targets have not been met, although this is
difficult to analyse as little information is provided on
the achievements of targets of the largest government-
funded programme, the Build Together programme. In
terms of government expenditure on housing, it is
currently at a historically low point: 0.3% of national
expenditure in Namibia is allocated to housing
compared to 2% in South Africa.
The delivery of housing units through the National
Housing Enterprise has been slowing down, and has
never met its target of 1,200 houses per year. Most
recent data shows an average of 253 houses per year
between 2003 and 2011, compared to an average of 600
houses per year during 1990 and 2002. In addition,
government contributions to governmental housing
projects, such as the National Housing Enterprise and
the Build Together programme, seem less efficient than
contributions to the Shack Dwellers Federation of
Namibia, who delivered 366 houses in 2009/2010, for
less than 25 percent of the government contribution per
house in the National Housing Enterprise or Build
Together schemes.
The key challenge in delivery of housing in Namibia is
the lack of available serviced land, which is both
slowing down the process of housing delivery and
pushing up prices of serviced land. The limited
availability of serviced land is mainly due to a lengthy
and outdated approval process for proclamation,
surveying, subdivision and registration of land, limited
financial capacity at local authorities and a lack of
surveyors and other qualified personnel at local levels.
Although government is taking steps to provide the
National Housing Enterprise with capital to service
land, limited action has been taken on the promised
shortening of the land approval process to six months,
as stated in the National Housing Policy.
Our research has furthermore shown a mismatch
between the government-funded programmes, and the
demand for housing. The largest backlog of housing is
in the lowest income sectors, with monthly incomes of
N$ 0 to N$ 1,500 (45,000 houses), and incomes between
N$ 1,501 and N$ 4,600 (30,000 houses). Although the
Build Together programme focuses on people with
incomes under N$ 3,000 per month, the National
Housing Enterprise only provides products for incomes
of over N$ 5,000 a month, which is less than 13 percent
of the population. Overall, the government products
seem focused on a population with some form of
income. However, with 51 percent unemployment,
there is a sizeable group that does not earn an income,
and thus cannot qualify for a Build Together or a
National Housing Enterprise loan. With a key focus on
an income-earning population, and with targets
ranging around 1,000 to 3,000 houses per year, the
government is not making a real impact on the backlog
in the lowest income groups, nor will it be able to
achieve its goal of poverty alleviation through housing.
Another key finding from the research undertaken is
that government is missing out on a range of opportuni-
ties. First of all, despite having invested N$ 67 million
into the Habitat Research and Development Centre,
government is not receiving the benefits of this
investment: neither the National Housing Enterprise
nor the Build Together programme actively encourage
the use of solar power or other alternative technologies
or materials, which have the potential to bring down
long-term costs and reduce costs associated with
servicing land. Secondly, there is very little attention
given to using the capability and resources of the
private sector to benefit from potential private sector
efficiencies: Government is currently not providing
incentives for the private sector to get involved in the
lower-income section of the market. This links in to the
third missed opportunity: using housing as a tool for
4
integration between different income groups. Where
other countries, such as Malaysia, the Philippines and
the United Kingdom, set requirements for private
developers to dedicate a certain percentage of housing
developments to affordable housing, the Namibian
government is currently not using this opportunity to
use housing as a tool for integration of different income
groups.
Overall, it is clear that government needs to drastically
change both the scale and focus of its programmes if it
is serious about delivering affordable housing for its
population. Government should focus on areas where
the market is currently not delivering, such as provid-
ing serviced land, reaching the lowest income sectors
and using housing as a tool for integration. The
following are our main recommendations to ensure
that the housing sector is a contributor to economic
development and poverty alleviation:
1. Address the issues around the approval process of
proclamation, surveying, subdivision and registration
of municipal land
"Simplifyandshortentheprocessofacquiringland,
as promised by the Minister of Regional and Local
Government, Housing and Rural Development, and
stated in the 2009 National Housing Policy
"Abolishtheminimumerfsize
"Trainmoreexpertsinlandprocessesatlocal
levels, such as surveyors
"Linkupwithexistingorplannedinfrastructure
2. Ensure that government-funded programmes reach
the people who need them most
"The National Housing Enterprise should shift its
focus to lower income groups
"Improve access to finance, for example through the
announced, but not implemented, Home Loan
Guarantee Trust, or a capital subsidy scheme
"Further focus on a wider range of options, such as
subsidised renting, rent-to-buy schemes and
upgrading of informal settlements
3. Promote alternative and local materials and energy
use
"SetacertainpercentageofallNationalHousing
Enterprise and Build Together projects that should
use solar power and dry sewage systems
"Moreemphasisonbuildqualitythroughbuilding
regulations and monitoring of these regulations
4. Involve the private sector as a tool for integration
and scaling up delivery
"Developproposalsfortheprivatesectortodedicate
20% of all housing developments within an
affordable range, as set by government
"Provideincentivesfortheprivatesectortobecome
involved in the lower income segment, for example
through invitations to provide proposals under the
Targeted Intervention Program for Employment
and Economic Growth (TIPEEG) or a system
similar to the South African subsidy scheme,
where developers can apply for subsidy if they
provide housing for low-income groups
5. Improve communication between stakeholders
"RevivetheexistingNationalHousingAdvisory
Committee
"Organiseannualhousingforumsandconferences
to provide a platform for the various stakeholders
to interact
5
1 Introduction
1.1 The Institute for Public Policy Research
The Institute for Public Policy Research (IPPR) is an
independent, not-for-profit, non-party political research
organisation established on 1 November 2000. Its aim
is to produce quality research on political, social and
economic issues and to disseminate this research to
Namibian decision-makers and the Namibian public at
large.
Amongst other projects, during 2011 the IPPR under-
took a review of housing policy and delivery in
Namibia, which has led to this report.
1.2 Rationale for research
Current research shows an emphasis on housing as a
catalyst for growth (Arku, 2006), thereby improving
welfare standards and decreasing poverty levels.
Therefore, housing policy is an important component of
anti-poverty interventions, with a direct impact on
peoples welfare through improving general living
conditions and health, as well as, providing a place to
conduct business and providing employment through
the construction and renovation of housing.
To enable the development of Namibia it is therefore
imperative that housing remains high on the agenda
and that the government pushes forward in this area.
This report is meant to facilitate this discussion by
reviewing the current progress and suggesting options
for change to enable government to make an impact on
the housing situation in Namibia.
1.3 Methodology
The research approach consists of the following
elements:
"desktop study of available documents, including
annual reports, media publications, academic
literature, relevant legislation and policies on the
following topics:
º housing policy and delivery in Namibia
º examples of housing policy and delivery in
countries across the world
º established research on the link between poverty
and housing
"interviews with 14 stakeholders (see Annex I for an
overview)
"analysis of government spending and receipts with
regards to housing since 1991
"analysis of data from the 2009 Windhoek
Household Survey
"consultation: a consultative workshop took place
on 23 June with 22 participants (see Annex II for
an overview)
1.4 Objectives
The research focuses on achieving the following three
objectives:
"Firstly, it aims to provide an accurate and up-to-
date overview of housing initiatives in Namibia.
"Secondly, the research aims to provide an
assessment of governments achievements in the
area of housing.
"Thirdly, it aims to provide recommendations for
policy initiatives to further progress in housing
policy and delivery in Namibia.
1.5 Limitations
Unfortunately there is little publicly available data on
the delivery of governments housing programmes. For
example, there is no publicly available report on the
delivery of housing units under the Build Together (BT)
programme, the largest housing programme sponsored
by government. This has made it difficult to provide an
assessment of the BT programme.
All figures related to budget expenditure in this report
are based on the estimates as reported in governments
budget documents. These are not the actual amounts
spent by government, but are used as an indication for
the actual amount spent. Unfortunately we were not
able to use the actual expenditure figures, as data on
the actual amount spent is not recorded consistently in
the annual budget documents.
To enable a fair comparison of figures, all figures in
this report are quoted in 2011 values, using inflation
data from the National Planning Commission (NPC),
unless otherwise stated.
6
2 Background to Housing in Namibia
2.1 Introduction
Namibia is a country with unique characteristics, such
as its low-density population, the relatively recent
history of apartheid and the highest income inequality
in the world as measured by the gini-index1. This
chapter will provide a brief insight into the background
of Namibia, the impact on housing policy and a current
overview of the housing situation.
2.2 Geographical location and population
Namibia is a vast country with a surface of around
824,290 square kilometres and a population of around
2.2 million, making it the second least densely popu-
lated country in the world2. Namibia is located in
Southern Africa and borders Angola and Zambia to the
north, Botswana to the east, and South Africa to the
south and east. 51% of the population is unemployed
(Republic of Namibia, 2010), and 38% of the population
lives in poverty (Schmidt, 2009).
2.3 Historical background
At independence in 1990, the Namibian government
inherited a very unequal pattern of settlement as a
result of apartheid policies followed by the colonial
government (Itewa, 2002). Large numbers of people
were living in poor housing conditions in areas
designated by the previous colonial government. In
addition, there is evidence to suggest that after inde-
pendence, rural-urban migration increased (Schmidt,
2009), leading to even more severe housing shortages in
the urban areas.
As a result, the government identified housing as a
priority area of development, along with education,
health and agriculture, leading to the first National
Housing Policy, which was approved by Cabinet in
1991 and reviewed in July 2009. It states that the role of
government is to ensure that the housing development
process is inclusive for all and that those households
excluded from the market and conventional housing
development mechanisms are given the opportunity to
access land, housing and services, as well as creating
an enabling environment for a vibrant housing market
1 The UN Human Development Report 2010 reports a gini-
coefficient of 74.3 (UNDP 2010)
2 World Bank Development Indicators, databank.worldbank.org
(Ministry of Regional and Local Government, Housing
and Rural Development, 2009).
Since then, the government has implemented several
housing programmes, such as the Build Together
programme, and has set up institutions to facilitate
further development of affordable housing, such as the
National Housing Enterprise. Although these pro-
grammes have made home ownership possible for
many who did not have access to finance before, the
government recognises the challenges in achieving its
targets, as stated in the third National Development
Plan (NDP) and Vision 2030.
Besides governmental initiatives, non-governmental
organisations have been active in the area of housing,
sometimes supported by government, with a clear focus
on low-cost housing, such as the Shack Dwellers
Federation of Namibia (SDFN). The next chapter
provides an overview of governmental and non-govern-
mental initiatives in Namibia since 1990.
2.4 Current housing situation
The most recent data on housing situation across
Namibia comes from the Namibia Labour Force Survey
in 2008 (released in 2010). The data reveals that at
national level, the vast majority (nearly 70%) of all
households live in dwellings that are owner occupied
without a mortgage, and that only 12% of households
have a mortgage, as illustrated by the table below.
Table 1: Distribution of households by type of tenure
Type of tenure Rural Urban Namibia
Rented (not tied to
the job)
1.2% 21.2% 9.3%
Owner occupied
with mortgage
3.3% 24.4% 12.0%
Owner occupied
without mortgage
85.8% 44.2% 68.8%
Rent free (not owner
occupied)
1.0% 4.5% 2.4%
7
Provided by
employer (public)
with pay
0.4% 2.2% 1.1%
Provided by
employer (public)
without pay
2.0% 0.6% 1.4%
Provided by
employer (private)
with pay
0.8% 1.1% 0.9%
Provided by
employer (private)
without pay
5.4% 1.7% 3.9%
Other 0.2% 0.1% 0.2%
In addition, the survey provides information on the
type of housing units. This indicates large differences
between rural and urban housing situations. A sum-
mary is provided in the graph below.
Figure 1: Distribution of households by type of housing unit in
Namibia
The pie-chart above shows that traditional dwellings are
very common when considering the total type of
dwellings in Namibia. Apartments, flats, single quarters,
mobile homes and guest flats make up less than 5
percent of total Namibian dwellings. However, the
picture is quite different when looked at rural and urban
situations separately, which is shown below. For exam-
ple, traditional dwellings are more common in rural
areas and the percentage of people living in improvised
housing (shacks) makes up 28 percent of all urban
population, compared to only 8 percent in rural areas.
Figure 2: Distribution of households by type in rural and urban
areas
2.5 Housing Backlog
The current backlog in housing is estimated to be over
80,000 houses3. The backlog in housing can be divided
between different income groups as shown below. The
pyramid illustrates that the largest backlog of housing
is in the income segment that earns between N$ 0 and
N$ 1,500 per month (a backlog of 45,000 houses),
closely followed by earners of N$ 1,501 to N$ 4,600 per
month (backlog of 30,000 houses).
Figure 3: Overview of housing backlog, income and population
(FNB, 2011)
2.6 Basics of the housing market
The housing sector exists in broad terms of three key
segments: inputs, production and demand, as schemati-
cally outlined in the graph below (Malpezzi, 1992).
3 Data based on NHIES and the National Housing Policy, adjusted
for population and economic growth to adjust for 2010 income
levels (FNB unpublished research, 2011).
0%
Guest flat
0%
Part commercial/industrial
0%
Mobile home (caravan/tent)
1%
Single quarters
1%
Apartment/flat
3%
Semi-detached/town house
8%
Improvised housing (shacks)
16%
Detached house
26%
Traditional dwelling
46%
Monthly income: < N$ 1,501
Monthly income: N$ 1,501 - N$ 4,600
Monthly income: N$ 4,601 - N$ 10,500
> N$ 10,500
Estimated backlog:% of population:
52
%
of
po
pu
lat
ion
35
%
of
po
pu
lat
ion
7.2
%
of
po
pu
lat
ion
5.7
%
of
po
pu
lat
ion 700
4,000
30,000
45,000
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
Traditional dwelling
Detached house
Improvised housing
(shacks)
Semi-detached/town
house Apartment/atSingle quartersMobile home(caravan/tent)
Part
commercial/industrial
Guest at
Other
Rural
Urban
Tra
dit
ion
al
dw
ell
ing
De
ta
ch
ed
ho
us
e
Im
pr
ov
ish
ed
ho
us
ing
(sh
ac
ks
)
Ap
ar
tm
en
t/
at
Se
m
i-d
et
ac
he
d/
to
wn
ho
us
e
Sin
gle
qu
ar
te
rs
M
ob
ile
ho
m
e
(ca
rav
an
/te
nt
)
Pa
rt
co
m
m
erc
ial
/in
du
str
ial
Gu
es
t
at
Ot
he
r
8
Figure 4: Basic overview of the housing market
Inputs, such as land, finance and labour are combined
to produce housing. In a perfect market situation,
relative prices inform producers of housing to provide
more or less housing, and more or less inputs. However,
in the current housing market, there is no perfect
competition and market failures exist in the provision
of inputs, such as a lack of basic infrastructure (Arnott,
2008), the limited availability of land and the availabil-
ity of finance. This indicates that problems in the
housing market are often problems caused by the input
markets. Especially in Namibia, one could argue that
this might be exacerbated by the small scale of the
market. In addition, the high inequality in Namibia
could play an aggravating role. Certain providers of
inputs and producers of housing might be used to high
returns in one part of the market, but reluctant to move
to another sector of the market where those returns
might be lower.
To enable a well-functioning market that provides for
all income groups, government policy should therefore
focus on the market failures that exist in the provision
of inputs in the housing market: land, infrastructure,
finance, labour and materials.
2.7 House prices and interest rates in
Namibia
Expenses on housing (including utilities) account for
21 percent of total consumption, making it the second
largest household expenditure item after food and
beverages (Kalili, 2008). Increasing house and rental
prices therefore have a significant impact on the
spending power of the population.
The First National Bank (FNB) collects and publishes
information on the house volume and house prices.
Their information shows that in October 2010, the
annual house volume index fell by 17.9 basis points,
and the annual house price index climbed by 12.4 basis
points, pointing at insufficient supply pushing up
prices4.
Interest rates play a major role in demand for mort-
gages, as high interest rates negatively affect household
demand for borrowing. Although interest rates rose
substantially between 2006 and 2008, these have since
come down rapidly. The latest figures from the Bank of
Namibia indicate an average mortgage rate of 10.5
percent, which is at its lowest for four years. This is
also illustrated in the chart below.5
Figure 5: Mortgage, Prime and Repo rate since 2006
2.8 Importance of housing in economic and
social development
As mentioned in Chapter 1, there is consensus on the
fact that housing has an important role to play in
peoples quality of life and health, and is a key factor in
promoting growth and eradicating poverty. The
Namibian government describes the housing sector as a
major contributor to the national economy, and having
an impact on social, political and environmental
fabrics of the Namibian Society (MRLGHRD, 2009).
Not just the existence of suitable housing, but also the
manner of production and exchange of housing has an
impact on development goals such as equity and
poverty. For example, construction techniques and
4 House shortage keeps prices high, The Namibian, 24 February
2011
5 Based on data on average mortgage rates from the Bank of
Namibia, www.bon.com.na
Land
Infrastructure
Finance
Labour
Materials
Landowners
Homeowners
Landlords
Developers
Renters
Homeowners
Inputs Production Demand
PRICES
PRICES
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
0.18
2006 2007 2011
Repo Rate [%]
Prime Rate (market avg) %
Mortage Rate (market avg) [%]
20
06
20
07
20
08
20
09
20
10
20
11
9
location of housing can influence environmental
sustainability and accessibility to income generating
activities. In addition, housing construction can play a
role in income and employment generation, particu-
larly for unskilled labour (Erguden, 2001). This is also
evidenced by Namibian non-governmental projects,
such as the Clay House project and Kavango Brick, two
examples of projects where non-skilled labour has been
trained to deliver houses.
Without thorough and wide-scale research, it is
difficult to precisely establish the link between
housing and economic and social development in
Namibia. However, data from the Windhoek Household
Survey in 2009 provides for some interesting findings
regarding this topic:
"people living in improvised housing units/shacks
are less likely to have obtained further education
than people living in detached, semi-detached or
apartments/flats. By comparison, only 12.2 percent
of people in improvised housing units/shacks have
an education level of grade 12 or higher, whereas
for people living in detached, semi-detached or
apartments/flats this percentage is 42.3 percent.
"only 27.8 percent of people living in improvised
housing units/shacks have access to electricity,
compared to 71.6 percent overall6. This can have a
significant impact on their ability to produce goods
or services from home.
It is evident that housing should not be looked upon
merely as a goal or a problem in itself, but also as a
policy tool for economic development and poverty
alleviation.
6 Based on the question what source people use for lighting.
10
3 Policy and Regulatory Environment
General policies
linked to
housing
National
Development
Plan 3
Millennium
Development
Goals
Vision 2030
Year Legislation/Policy Key elements
1991 National Housing Policy Stating GRNs commitment to address
housing needs.
1992 Local Authorities Act Establishment of housing schemes by
a municipal or town council with the
approval of the Minister
1993 National Housing Enterprise Act Governs the operations of the NHE
2000 National Housing Development Act Establishes National Housing Advisory
Committee, housing revolving funds,
established Build Together
2009 National Housing Policy
(reviewed)
Legislation/policies that
influence housing
Legislation related to housing finance:
Banking Institutions Act, Co-operative
Act, Friendly Societies Act, Usury Act,
Pension Fund Act
Policies and (upcoming) legislation
related to build quality and materials:
Namibian Planning and Construction
Bill, Water Supply and Sanitation Policy
Legislation related to land availability
and land titles: Deeds Registration
Act, Agricultural Land Reform Act,
Communal Land Reform Act, Flexible
Land Tenure Act, Urban and Regional
Planning Bill
Figure 6: Overview of policies and regulations related to housing
3.1 Introduction
This chapter provides a brief summary of the policy
environment for housing delivery in Namibia. The
overview below illustrates the complexities of deliver-
ing housing by showing the different policies and
regulations that affect and influence housing delivery
in Namibia. These policies and regulations are further
highlighted in this chapter.
3.2 Policies
The key policy underpinning the governments housing
strategy is the National Housing Policy, formulated and
approved in 1991 and reviewed in 2009. The National
Housing Policy contains a surprisingly honest review
of governments challenges and suggests ways of
improvement.
Strategies outlined in the National Housing Policy are:
"Housing as an agent of economic growth
º The policy provides for the establishment of a
Home Loan Credit Guarantee Trust to be
established to provide and facilitate accessibility
to technical and financial resources for those
who are unable to afford credit facilities offered
by commercial and development financing
institutions.
"Promotion of capital investment in local and
regional infrastructure to speed up the process of
land delivery
º Local and regional authorities are responsible for
developing and providing land for public and
low-cost housing development purposes, but
central government is stated as providing grants,
subsidies and possibly soft loans to invest in
local infrastructure.
º It states that the approval process of
proclamation, surveying, subdivision and
registration of municipal land should be shorted
to a period of six months or less.
º It prescribes a minimum erf size of 300 m2, with
possible exemptions for smaller erven.
"Mobilisation of domestic savings and affordable
credit to provide and finance housing
º The Government Institutions Pension Fund and
other private pension funds should provide
investment capital for housing and should serve
as guarantee mechanisms to back home loan
facilities of their members
"Provision of subsidies and grants by government
and development partners to support social
housing
º For basic shelter for individual citizens and
11
families without income
º Includes the Build Together Programme and
community based initiatives
"Creating sustainable human settlements through
an integrated housing development approach
º Upgrading of informal settlements
º Extending housing to rural areas
º Making housing an integral part of development
efforts
"Promotion of the use of appropriate and alternative
technologies, methods and services in order to
provide affordable housing solutions
º Use of alternative building materials and
technologies, alternative housing types,
alternative service levels and standards, and
alternative forms of ownership
º Focus on minimising cost and making housing
more affordable
"Introduction of a four-based housing mix
º Houses for sale, rental accommodation (including
rent to buy option), social/subsidy housing,
houses built by people themselves
"Strengthening the housing regulatory environment
º Amendment of National Housing Development
Act of 2000
º Set up of a Namibia Housing Code and the
Housing Industry Regulatory Council to regulate
the housing sector. This will include registration
of all housing developers.
"Enhancing institutional capacity and cohesion
within the housing sector
º Organisation of national housing forums on an
annual basis and national housing conferences
º The Skills Development Resource Centres from
the Habitat Research and Development Centre
(HRDC) should provide technical support to
Local Authorities and Regional Councils to
manage and operate the Build Together Program
and to community based housing initiatives such
as SDFN.
"Supporting people housing processes
º Government shall provide financial resources in
the form of housing subsidies, facilitation and
grant funding
º Decentralised Build Together Programme will be
strengthened
Other policies related to housing are the third National
Development Plan (2007/2008), Vision 2030 (2004), the
Millennium Development Goals that Namibia has
committed itself to work towards, and the recently
launched Targeted Intervention Programme for
Employment and Economic Growth (TIPEEG).
The third National Development Plan includes the
following headlines:
"increased supply of serviced erven
"increased construction of houses
"completion of the Habitat Research and
Development Centre
"decentralisation of urban and regional planning
"maintenance of a conducive financial system for
housing financing for middle and lower income
groups
"development and implementation of a national
participatory land and shelter information system
and database
Vision 2030 states that by 2030 people should have
access to adequate housing, with water and sanitation
facilities for all. It also states that in order to deal with
an estimated backlog of 80,000 houses, 3,000 houses
would need to be built each year to meet the popula-
tions housing needs by 2030.
Alongside vision 2030, the government also released a
report on their progress and commitment towards the
Millennium Development Goals in 2004. The main
focus is on providing water and sanitation to Namibias
households, which falls under Millennium Develop-
ment Goal 7: Ensure environmental sustainability.
There are no specific targets for housing included.
TIPEEG focuses on the creation of employment, and
highlights housing as one of the four key sectors. More
detailed information on the programme is supplied in a
separate section below.
3.3 Regulation
Regulations that primarily focus on housing are:
"Local Authorities Act (1992):
º Provides for the establishment of housing
schemes by a municipality or town council with
the approval of the Minister
º Local Authorities may set up housing funds
º Local Authorities may assist in financing,
through banking institutions, building societies
or direct loans
"National Housing Enterprise Act (1993)
º Provides for the operations and the governance of
the Namibia Housing Enterprise
"National Housing Development Act (2000)
12
º Establishes a National Housing Advisory
Committee to advise on housing programmes
º Provides for Housing Revolving Funds to be
established by regional and local authorities to
be used for low-cost housing
º Establishment of Decentralised Build Together
Committees for each region, to deal with
applications for assistance from the Housing
Revolving Funds.
º It is stated in the National Housing Policy that
the National Housing Development Act is to be
amended to be in harmony with the National
Housing Policy.
Apart from the regulations that are primarily con-
cerned with housing, there are several other regula-
tions that influence housing policy and delivery. These
are:
"Regulation related to housing finance (Kalili,
2008):
º Banking Institutions Act: governing the
operations of commercial banks
º Co-operative Act: governing the operations of
co-operative micro-finance institutions
º Friendly Societies Act: governing the operations
of non-governmental organisations that operate
microfinance schemes
º Usury Act: micro-credit interest rate ceiling
º Pension Fund Act: enables accumulated pension
benefits to be used as collateral land and allows
housing finance providers to overcome the
barrier of untitled land
"Regulation related to land availability and land
titles:
º Deeds Registration Act: governs all matters
relating to the registration of immovable and
movable property, including housing
º Agricultural Land Reform Act: governs the
acquisition of agricultural land by government
for the purposes of land reform and
redistribution
º Communal Land Reform Act: provides the legal
basis of the allocation of rights to communal
land and leasehold rights in rural areas
º Flexible Land Tenure Act: governs the
registration of untitled land in the deeds office,
which allows the provision of housing finance to
communal, urban areas
º Urban and Regional Planning Bill (to be
presented to the Cabinet Committee of
Legislation during the course of 2011): to provide
a uniform, effective, efficient and integrated
regulatory framework for planning, land use and
land use management (Raith, 2011).
"Regulation related to build quality and materials:
º Namibian Planning and Construction Bill
(proposed): establishment of a council of 13
members from different sections in the
construction industry to regulate the industry.
º Architectural and Quantity Surveying Bill
(proposed): to provide for continued existence of
the Namibia Council for Architectural and
Quantity Surveyors under the name Namibia
Council for Architectural and Quantity
Surveying Professions
3.4 Governments targets
Ever since the government has specified housing as a
high priority area, ambitious targets have been set,
both in annual budget announcements as in policy
documents. The following table provides an overview
and illustrates the variance between targets set in
various policy documents published by the
government.
3.5 Budget 20117
Budget 2011 announced that the Ministry of Regional
and Local Government, Housing and Rural Develop-
ment (MRLGHRD) would receive additional funding in
order to address the backlog in housing and in sanita-
tion facilities, in particular in villages and settlements.
Its budget share will increase from 3.2% over the past
five years to an average of 3.8% (or a total of N$
4.6 billion) over the total Medium Term Expenditure
Framework (MTEF) period. The Ministry receives an
additional N$ 330 million for its development budget in
2011/12 bringing the development budget to N$
610 million. Sanitation projects in urban and peri-
urban areas receive an additional N$ -176 million (an
increase of 65 percent), while the City of Windhoek
receives N$ 116 million for the development of infor-
mal settlements. On the other hand, rural sanitation
projects in a number of villages and in the seven
northern regions are stretched over a longer period of
time than planned in the previous MTEF. The amount
of N$ 81 million previously budgeted for the financial
year 2012/13 is now stretched over the years 2012/13
and 2013/14.
7 Based on National Budget 2011/2012 Bold Steps in the right
direction?, Klaus Schade, IPPR Briefing Paper No.54, March
2011
13
Topic
National Housing
Policy (2009)
Vision 2030 (2004)
Budget
documents
TIPEEG
Housing
units
"2,200housing
units delivered
per annum
"Build3,200housesperannumuntil
2006 under the decentralised BTP
(total of 9,590 houses by 2006 )
"NHEtoconstruct7,937houses
"1,000affordablehousesare
constructed by 2006
"1,300housing
units delivered
per annum until
2014*
"1,507lowcost
housing units
delivered per
annum until
2014 (total of
4,521)
Land -
"NHEtodevelop3,371plotsatan
estimated cost of N$ 143 million
"Landissecuredandimprovedfor
3,000 households in urban areas
"1,327new
serviced plots
per annum until
2014 (total of
3,980)
Informal
settlement
upgrading
"75%ofinformal
settlements
upgraded by 2030
- - -
Basic
services
(water,
sanitation,
electricity)
"90%ofrural
population have
access to basic
services by 2030
"100%accesstowaterinbothrural
and urban areas by 2030
" Increasewater
provision to
95.5% of all
rural communi-
ties by
2011/2012
"30%ofrural
households have
access to
appropriate
sanitation
facilities
"4,333new
ventilated pit
latrines per
annum until
2014 (total of
13,000)
Finance
"65%ofNamibian
households have
access to credit
facilities for
acquiring land
and housing by
2015
"GRN,NHEand
other actors
should attract at
least N$ 1.5
billion from 2009
to 2014 in the
private sector.
50% should cater
for middle to low
income groups
"Putinplaceoperationalrevolving
credit funds with all local
authorities and regional councils by
2005
- -
Economic
development
"Housingsector
contributes 12%
to GDP by 2020
- -
"Creationof
10,333 net new
jobs per annum
until 2014 (total
of 31,000)
* Medium Term Expenditure Framework 2011 - 2014
Table 2: Governments targets on housing
14
The focus of the Ministry is clearly on improving
sanitation infrastructure since there is hardly any
increase in the construction of houses planned over the
MTEF period. The Ministry intends to build 1,300
houses per annum during the MTEF period under
various programmes. The number of houses to be
constructed under the Urban/Rural Housing Loan
Scheme has been lowered from 1,200 in 2011/12 (as per
MTEF 2010/11 to 2012/13) to 875 for the same in the
new MTEF. The number of new houses is expected to
drop further in 2012/13 to 750 before it increases to 900
units. An additional 75 and 80 units will be con-
structed in 2011/12 and 2012/13 respectively through
the support to the Shack Dwellers Federation of
Namibia and 143 (2011/2012), 158 (2012/2013) and 238
(2013/2014) houses under the social housing pro-
grammes. On the other hand, the NHE receives a
capital injection of N$ 30 million in 2012/13 and
2013/14 to support NHEs strategy to acquire virgin
land from Local Authorities which it services before it
builds houses on.
3.6 Targeted Intervention Programme for
Employment and Economic Growth
Alongside the 2011 Budget announcements, govern-
ment announced the introduction of a new programme
in an attempt to arrest the escalating unemployment
rate, called the Targeted Intervention Programme for
Employment and Economic Growth (TIPEEG). TIPEEG
is a three-year programme, starting in 2011/2012 and
focuses on four sectors: agriculture, transport, tourism
and housing and sanitation. The housing and sanita-
tion programme comprises of four sub-programmes:
"servicing of land
"construction of low-cost houses
"urban sanitation
"rural sanitation
The programme aims to deliver the following in the
three-year period between 2011 and 2014:
"44,337 direct and indirect jobs; of these 31,000 are
net new jobs
"3,980 new serviced plots
"4,521 new low cost houses
"13,000 new ventilated pit latrines
The total investment for the housing and sanitation
programme is N$ 2.8 billion. Of this, N$ 1.7 billion will
be directly financed from the budget of central govern-
ment, while a large role is put for the NHE to source the
remainder through alternative sources of funding, such
as multilateral institutions, commercial banks or
internal sources of funding (Republic of Namibia,
2011). As of yet, there seems to have been no consulta-
tion with other stakeholders in the housing market,
such as the Shack Dwellers Federation of Namibia, on
the implementation of TIPEEG.
3.7 Government spending on housing
The budget for housing affairs and services8 as part of
the total governments budget, on average during the
last twenty years has been 0.5% of the total govern-
ments budget9. There was a clear peak in the first few
years after Independence (1.2%), and a minor peak
around 2003/2004 (0.6%) and more recently in
2010/2011 (0.5%). For the current MTEF period the
percentage of governments budget dedicated to
housing affairs and services is at one of its historically
lowest points, around 0.3% of total expenditure. Only
in 1999/2000 was the allocation to housing lower. The
total budget allocated to housing affairs and services in
2011/2012 is N$ 131 million. Compared to South
Africa, the relative budget allocation is low: the South
African Department of Human Settlements received on
average 2% of all expenditure during 2007 to 2010 and
this is expected to rise to 2.5% by 2014 (www.treasury.
gov.za)10.
Figure 7: Housing budget as a percentage of total government
expenditure
8 The governments budget documents provide separate
information on Housing Affairs and Services. The objective is
to facilitate, establish, regulate and exercise control over the
obtaining of allocation and the provision of shelter at affordable
and acceptable conditions, and to promote development of
communities in economic, physical and social fields (Budget
documents).
9 Based on budget estimates from Budget documents released in
1990 to 2011
10 The Department of Human Settlements main focus is to ensure
that every South African has access to permanent housing.
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
19
97
/1
99
8
19
96
/1
99
7
19
95
/1
99
6
19
94
/1
99
5
19
93
/1
99
4
19
92
/1
99
3
19
91
/1
99
2
19
90
/1
99
1
20
05
/2
00
6
20
04
/2
00
5
20
03
/2
00
4
20
02
/2
00
3
20
01
/2
00
2
20
00
/2
00
1
19
99
/2
00
0
19
98
/1
99
9
20
13
/2
01
4
20
12
/2
01
3
20
11
/2
01
2
20
10
/2
01
1
20
09
/2
01
0
20
08
/2
00
9
20
07
/2
00
8
20
06
/2
00
7
15
When one considers the total budget for the Ministry of
Regional and Local Government, Housing and Rural
Development, the picture is slightly different. Although
the Ministrys budget as a percentage of total govern-
ments budget is still currently below the average of
3.6%, it is expected to rise during the MTEF to 4.1% by
2013/2014, as illustrated by the table below.
Figure 8: Budget for MRLGHRD as a percentage of total
expenditure
3.8 Government Income from Housing11
Through the receipt of interest payments, rental for
houses, sale of erven and the receipt of the principal of
the loans, government also receives an income from its
housing policy. On average this is around 10 percent of
the total expenditure on housing. Around 50 percent of
all income consists of the return of the principal of loans
for low-cost housing and self-build schemes. The graph
below shows government revenue from housing12
between 1990 and 2010.
Figure 9: Government income from housing
11 Based on an analysis of actual revenue recorded in the Estimates
of Revenue and Expenditure from 1990 to 2010, and inflated to
2010 price levels.
12 The graph shows a peak in 2004/2005, caused by an enormous
increase in the actual revenue of principal of loans from low-
cost housing and self-build schemes, as reported in 2006-2007
Estimates of Revenue and Expenditure. We have not been able to
verify this data.
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
5.00%
19
97
/1
99
8
19
96
/1
99
7
19
95
/1
99
6
19
94
/1
99
5
19
93
/1
99
4
19
92
/1
99
3
19
91
/1
99
2
19
90
/1
99
1
20
05
/2
00
6
20
04
/2
00
5
20
03
/2
00
4
20
02
/2
00
3
20
01
/2
00
2
20
00
/2
00
1
19
99
/2
00
0
19
98
/1
99
9
20
13
/2
01
4
20
12
/2
01
3
20
11
/2
01
2
20
10
/2
01
1
20
09
/2
01
0
20
08
/2
00
9
20
07
/2
00
8
20
06
/2
00
7
19
97
/1
99
8
19
96
/1
99
7
19
95
/1
99
6
19
94
/1
99
5
19
93
/1
99
4
19
92
/1
99
3
19
91
/1
99
2
19
90
/1
99
1
20
05
/2
00
6
20
04
/2
00
5
20
03
/2
00
4
20
02
/2
00
3
20
01
/2
00
2
20
00
/2
00
1
19
99
/2
00
0
19
98
/1
99
9
20
09
/2
01
0
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08
/2
00
9
20
07
/2
00
8
20
06
/2
00
7
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
16
4 Housing programmes in Namibia
4.1 Introduction
Government is responsible for housing programmes in
Namibia, such as the Build Together Scheme and
supports the National Housing Enterprise. Besides
government, there is also a range of non-governmental
organisations involved in housing. This chapter
describes the key actors of housing policy and delivery
and will outline the characteristics of governmental
and non-governmental programmes.
4.2 Key stakeholders
Housing is a complex area, which involves many
different stakeholders, from government, financial
providers to the builders of housing. The following
figure shows the key stakeholders in housing delivery
in Namibia.
Figure 10: Key stakeholders in housing delivery in Namibia
The key players in housing delivery and their roles and
responsibilities can be described as follows:
Government
"Ministry of Regional and Local Government,
Housing and Rural Development13
º Facilitate funds for the Decentralised Build
Together Programme to Regional Councils (RCs)
and Local Authorities (LAs) for the provision of
13 Based on information supplied by the Directorate of Housing,
Habitat, Planning and Technical Services Coordination
housing to the low and ultra-low income
households
º Formulate and review housing legislation, set
standards, monitor and evaluate the
implementation process of the housing
programme
º Assist in capacity building for RCs
"Ministry of Lands and Resettlements
º Main actor in planning and administration of
land
"Regional and Local Authorities
º Provide infrastructure and make land available
to the public
º Develop plots at a cost affordable to low-income
groups through cross subsidies, community work
and appropriate standards
º Responsible for the formalisation of informal
settlement areas and implement low cost housing
schemes, such as the BT programme
"National Housing Advisory Committee
º Consists of three to five stakeholders / experts in
housing. Current members include the NHE and
SDFN.
º Objective is to provide advice to the Minister on
any aspect of national housing. However,
stakeholders reported that this committee is
currently not meeting on a regular basis.
Quasi-governmental institutions
"National Housing Enterprise
º parastatal of the Ministry of Regional and Local
Government, Housing and Rural Development
º acts as a lending institution as well as a
developer in the field of affordable housing
"Habitat Research & Development Centre
º Funded by MRLGHRD
º Promotes and facilitates the use of local building
materials, ecological sanitation, water
conservation, renewable energy and biodiversity
Non-governmental organisations
"Shack Dwellers Federation of Namibia
º Community network of savings groups
º Receives annual funding from Government
"Clayhouse project
º Production of clay houses, dry toilets and
Housing
Delivery
Ministry of
Regional and Local
Government,
Housing and Rural
DevelopmentMinistry of
Lands &
Resettlement
National
Housing
Advisory
Committee
Non-Governmental
Organisations:
-Shack Dwellers
Federation of Namibia
-Clayhouse Project
-Others
Private Sector:
Financial Institutions:
- Banks
- Micro-Finance
Institutions
Consumers of
Housing:
- Individuals
- Through savings
groups (such as
SDFN)
Private Sector:
Services & Materials:
- Contractors
- Material suppliers
- Property developers
Regional and
Local Authorities
National
Housing
Enterprise
Habitat
Research &
Development
Centre
17
research of use of other local materials
Private sector
"Financial institutions
º Provide funding directly to consumers in the
form of mortgages, micro-finance, or indirectly
through agreements with the NHE
"Suppliers
º Suppliers of building materials
"Developers / Contractors
º Suppliers of labour
4.3 Governmental programmes & initiatives
Build Together programme
The Build Together programme consists of four
sub-programmes: urban/rural housing loans, social
housing, single quarters transformation and the
informal settlement upgrading programme. However, it
is widely known for the loan element of the pro-
gramme, normally referred to as the BT programme,
which is also the part of the programme that receives
by far the most amount of funding (see figure 11).
The BT programme was established in 1992 and is
administered by MRLGHRD, with implementation
decentralised to regional and local levels in 199814. The
target group consists of low and ultra-low households
with a monthly income of maximum N$ 3,000. The
loan amount varies between N$ 3,000 and N$ 40,00015.
The key principles are (Republic of Namibia, 2007):
"Revolving funds are provided from MRLGHRD to
local authorities to advance loans for low cost
housing for low income households
"Households can request to be placed on the waiting
list for land as an individual, or as a savings group
(for example through the Shack Dwellers
Federation of Namibia)
"Funds are used to purchase building materials and
are paid directly to supplier of materials
"All loans are disbursed and collected by banks.
Interest rates are typically 4% to 7%
At its start, BT was plagued by a range of issues, such
as mismanagement of funds. However, with the change
in strategy (for example through paying in milestone
payments and directly to suppliers), this seems to have
improved although an article by the Chief Control
14 We were informed by the NHE that there is a discussion ongoing
to shift the management of the BT programme to the NHE.
15 We were informed by the Municipality of Windhoek that there is
a discussion to raise the maximum loan value to N$ 60,000.
Officer of Housing Administration at the MRLGHRD
(Simion) lists several issues, such as LAs/RCs failing to
set up the appropriate accounts, a lack of human
resources at sub national level, lack of land availability,
poor build quality and mismanagement of the program
at a sub national level. In addition, interviewees
commented about the time consuming process, with
the Municipality of Windhoek stating a completion
time of 34 months at best. This excludes any time on
the waiting list, which can easily be more than five
years in Windhoek16.
In total, government had budgeted N$ 908 million
during the period 1990 until 2010/2011 for the four
elements of the Build Together Programme17. The loans
provided under the BT scheme are by far the largest
component of this with a total funding of N$ 508
million, compared to N$ 579 million for all other
programmes combined, as illustrated in the next graph.
Figure 11: Government expenditure on housing programmes
1990/1991 2010/2011
It has not been possible to use publicly available
documentation on the delivery of houses as part of the
BT programme. However, the following figures were
supplied by MRLGHRD (but not split out into separate
years):
"Centralised BT (including urban and rural
housing, single quarters and social housing):
10,244 housing units during 1992 to 1997
"Decentralised BT: 16,428 housing units during
1998 - 2010
16 We were informed by the Municipality of Windhoek that people
who registered in 2004 for land, are currently being served,
which implies a waiting list of around 7 years.
17 Calculated to 2011 price values
0
100
200
300
400
500
600
BT loans National
Housing
Enterprise
single
quarters
upgrading
Lüderitz
project
Habitat
Research and
Development
Centre
Informal
settlement
upgrading
Social
Housing
Easy Builder SDFN ECD Shelter Africa
G
RN
s
pe
nd
(2
01
1
va
lu
es
N
$
m
ln
)
18
Although this data needs to be treated with caution, we
have compared the total amount of funding that
government has provided to the BT programme over
the years with the delivery of housing units. The
conclusion when analysing this data is that govern-
ment has provided a subsidy of N$ 16,224 per house
during the period of 1998 2010 under the Decentral-
ised Build Together scheme, in 2011 price levels. As the
beneficiaries of the BT programme pay for the full
amount of construction (through a BT loan), we can
conclude that this funding is dedicated to the overhead
costs of running the BT programme.
National Housing Enterprise
The NHE replaced the National Building and Invest-
ment Corporation in 1993, and is a parastatal of the
MRLGHRD. NHE states that it acts both as a lending
institution and as a developer in the field of affordable
housing. Its mission is to be the leader in the provision
of housing to the nation. The target group consists of
households with over N$ 5,000 per month, and not
more than N$ 20,000 or a maximum joint income of N$
30,000 per month. Furthermore, collateral of 20 percent
or a deposit of 5 percent is required. NHE sources
funding from the capital markets and currently has an
agreement in place with Standard Bank. This partner-
ship entails that Standard Bank deals directly with
NHE clients to arrange their mortgage, with the
agreement that the interest rate is always at maximum
the prime rate minus 1 percent.
The NHE offers two types of houses: core houses and
conventional houses. Core houses are basic houses
targeted at the low-income market. The lowest price of
a core house was around N$ 100,000 (depending on
location due to high variance in land prices) in 200918.
Per square metre, core houses sell for around N$ 5,900
per square metre. Conventional houses are fully-fin-
ished houses with two or more bedrooms. In 2009 the
prices of conventional houses ranged from N$ 200,000
to N$ 400,000, selling for around N$ 4,300 per square
metre. Overall, conventional houses have generally
made up the majority of the houses delivered by the
NHE (around 60 percent), but this trend seems to be
reversing with the NHE stating a higher interest in core
houses.
The NHE has more recently also ventured into the
rental market. They have 37 rental units in Eenhana
18 Based on data supplied by NHE over 2009.
and are looking for opportunities in Windhoek and
Walvis Bay.
Besides housing products, the NHE also provides as
part of its portfolio a range of other products, such as
study loans and deposit accounts.
In its annual reports, the NHE provides a clear over-
view of all houses delivered during the last 20 years19.
The table below summarises the total number of houses
delivered across Namibia. The average number of
houses delivered per annum since 1990 is 457. How-
ever, since 2003 there has been a clear dip in the
number of houses delivered, with the lowest delivery of
houses recorded in 2007, when 129 NHE houses were
delivered, compared to an average of 600 houses per
year during 1990 to 2002.
Figure 12: Housing delivery by NHE 1990 - 2011
In addition, the NHE also provides data on the number
of serviced erven since 2000. The average number of
serviced erven per year between 2000 and 2011 is 390.
According to the NHE, the key reason for the low
numbers of delivery is the scarcity of available land. To
enable the NHE to acquire virgin land the government
has provided N$ 1.2 million as a subsidy to the NHE in
2010/2011 and is planning to provide a capital injection
of N$ 25 million in 2011/2012, 30 million in 2012/2013
and 30 million in 2013/2014.
Overall, the NHE has received N$ 109 million from
1990 until 2011 (in 2011 price levels) in the form of
19 Unfortunately the annual reports of 2007/2008, 2008/2009 and
2009/2010 are not yet available.
0
100
200
300
400
500
600
700
800
900
1000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
19
equity investment and N$ 56.7 million as a subsidy
from government during this period as a subsidy.
Besides funding from government, the NHE generates
additional income through the development and
financing of houses and other loan products.
If we divide the total amount that government has
contributed to the NHE by the total number of houses
that have been delivered since 1990, this works out to
be an average equity contribution of N$ 10,881 and an
average subsidy contribution of N$ 5,641 per house, a
total of N$ 16,522 per house delivered. It should be
noted that this is not equal to the cost of the house, but
purely considers the contribution that government has
provided to the NHE to enable them to deliver houses
within the remit as set by government. As the NHE
charges the beneficiaries for the full value of building
and financing the house, and has made a profit on this
in the last few years, we can conclude that this subsidy
is dedicated to the overheads and the running of the
NHE organisation.
Habitat Research and Development Centre
The Habitat Research and Development Centre was set
up by government with the goal to provide research on,
and promote the use of local indigenous building
materials. The goal behind this is to reduce the
dependency on expensive, imported building materials
from South Africa. The Centre itself is an example of
what can be achieved with local materials, as it is
almost entirely built from alternative low-cost materi-
als, such as clay and car tyres. HRDC has been in
existence since 2001, and was set up in its current form
in 2008.
Key projects that HRDC focuses on are:
"education on water, sanitation and other aspects of
sustainable housebuilding
"solar power
"building techniques, such as hydraform blocks
"working together with the Clay House project on
Otjitoilets (see Box 1)
"advising government on these topics
The centre works together with the City of Windhoek
and the MLRGHRD. At this point in time there is no
cooperation with the NHE.
Until 2010/2011, the HRDC has received funding from
the government of a total of N$ 67 million20, of which
49% was targeted at the construction cost of the centre,
20 2011 price levels
and the remaining for the operations of the centre.
Going forward, for the year 2011/2012, the government
has budgeted N$ 4.5 million for the operations of the
centre.
Other nationally supported programmes
The budget documents point at the following other
nationally supported programmes:
"Lüderitz project: a low-cost housing project in
Lüderitz which has received government funding
since 2002 to a value of N$ 101 million21. The
project has been plagued by media articles about
failed delivery and corruption and no information
is publicly available on the status of the delivery of
the project. The 2011/2012 budget for MRLGHRD
21 2011 price levels
Box 1: Otji-Toilet
Water is a scarce resource in Namibia.
The Otji-Toilet offers an alternative to water-
based toilets, through an innovative system that
does not need any water supply. This lowers the
running costs of the toilet and removes the need
for a connection with the sewage or water
system. The system is designed in such a way
that it is relatively maintenance free (once
every six months an inside container needs to
be removed), and can be used by 10 users or
more. The toilet can be placed either outside or
inside the house. A sun-based ventilation
system at the back of the toilet provides fresh
air, which keeps it dry and ensures an
odourless use. The Clay House project estimates
that the Otji-Toilet can save a household up to
N$40,000 in 20 years.
(http://home.arcor.de/clayhouse/)
20
does not include further funding for the project,
although funding for the Lüderitz Water Front is
included in the Ministry of Finances budget22.
"Annual subsidy to the Shack Dwellers Federation
of Namibia, to a total of N$ 11.3m until 2010/2011.
A detailed description of this programme is
provided below.
"Other projects that received a relatively small
amount of funding from government are Easy
Builder, ECD, Shelter Africa.
4.4 Non-governmental programmes &
initiatives
Shack Dwellers Federation of Namibia & Namibia Housing
Action Group
The SDFN was established in 1998 as a network of
housing saving schemes that aims to improve the living
conditions of low income people living in shacks,
rented rooms and those without any accommodation,
while promoting womens participation. The Namibia
Housing Action Group (NHAG) is a support NGO that
provides overview and management to the SDFN.
Through saving schemes, local saving groups save up a
5 percent deposit, after which they can access the
Twahangana Loan Fund, a revolving fund that is partly
funded by the government, repayments and donors.
Although there is no specific income limit specified,
SDFN focuses on low income earners such as security
22 N$ 10 million is included for the completion of phase 2 of the
Lüderitz Waterfront, which includes residential flats. However,
it is not clear if this is the same development as the Lüderitz
project that has been included in previous budgets of the
MRLGHRD.
guards and domestic servants with typically incomes
below N$ 2,000. The houses are basic houses of usually
two rooms and around 34 square metres, with an
average cost of around N$ 25,000.
In terms of housing delivery, in the 12 months from
July 2009 to June 2010 366 houses were delivered
through the SDFN, and a further 322 were in progress.
In addition, a total of 731 households in 11 urban areas
in 7 regions obtained land during this period, bringing
the total number of households in the SDFN with land
to 4,582 (NHAG & SDFN, 2011).
In total, nearly 20,000 people are involved in saving
through the saving groups, as illustrated by the table
below.
Between June 2009 and 2010, the total savings
increased by 28%, and the number of members
involved increased by 504 (2.7 percent).
The Twahangana Fund provides funding to groups for
the construction of houses, developing services, land,
income generation and community projects. In the
12-month period up to 30 June 2010, total loans to a
value of N$ 9mln were provided through the Twa-
hangana fund. The average value for a house loan
during this period was around N$ 20,000. A break-
down of all loans provided in this period is shown in
the table below.
Table 3: Savings Shack Dwellers Federation of Namibia
Total Savings June 2010 Total members Female Male Groups
N$ 7,703,611,70 19,392 12,470 6,922 620
Table 4: Loans Shack Dwellers Federation of Namibia
Type of loan Households participation Value (N$)
House loans: 426 households 8,459,105
Small Business Loans: 185 households 258,584
Services and land Loans: 14 households 360,225
Total loans through the Twahangana Fund 625 beneficiaries 9,077,914
21
In some towns, the SDFN is able to access the BT
scheme. In these cases, the members build the houses
first (using funding from the Twahangana fund), which
is then refunded to the fund by the municipality after
the houses are completed.
Government funding to the SDFN has traditionally
been N$ 1 million per year since 2004 for the Twa-
hangana Fund, but this has since increased to N$ 3.5
million in 2011. Calculated on a per house basis from
1996 to 2010, this is a government contribution of N$
3,791 per house in 2011 values. This excludes any other
donor funding that the SDFN receives, and only
considers the amount of funding from government
perspective into the programme.
Other savings groups
Other independent saving groups that are not part of
the SDFN also exist. In addition, some municipalities
provide facilities (such as training) for savings groups.
After saving for a deposit these groups can then access
the Build Together scheme.
Clay House project
The Namibian Clay House Project Development Trust
was set up in 1991 and is based in Otjiwarongo. The
focus of the project is to develop and deliver innovative
solutions using local and sustainable materials. They
have developed the Otji-toilet, a dry toilet system (see
Box 1), and have built 350 clay houses. The target group
are households with a monthly income of around N$
500 to N$ 1,000. The price of an average 50 square
metre clay house is around N$ 70,000. This illustrates
the key challenge to the project: the target groups
maximum affordable house is around N$ 35,000,
making this a product that requires subsidies to enable
to make it attractive to the target group. However, this
is not the case for the Otji-Toilet: due to the fact that no
water is needed and that the toilets are produced
locally, the Otji-Toilets are likely to save households in
future23. Otji-toilets have now been installed in
Windhoek and Otjiwarongo has placed an order of
2,500 toilets over the next 5 years.
In the past, the Clay House project has used unskilled
labour and trained them during the process of building
the clay houses.
23 The cost of the toilet is N$ 7,500 including transport and labour.
A self-build kit costs N$ 3,800. Information provided by the Clay
House Project.
Funding for the Clay House project has come from
international donors, including the European Union
and Germany.
Private sector initiatives
Besides non-governmental initiatives, there have also
been a few private sector initiatives focused on the
affordable housing market. For example, in 2009
contractor Fritze & Quelle developed a concept for
low-cost housing ranging from N$ 50,000 to N$ 200,000
in Swakopmund. Fritze & Quelle worked together with
a range of partners from the construction industry,
banking sector and legal profession, with interest from
the German Development Cooperation to try to mini-
mise the cost of housing. They prepared a concept for
an employer housing scheme, where the employer
would serve as a mediator between employees and
banks (Deutscher Entwicklungsdienst, 2010). Com-
bined with the use of pre-defined materials, certified
developers and alternative energy solutions, this would
provide lower risks to banks and access to affordable
and quality housing for employees. Despite large
interest from employees (more than 3,000 employees
showed interest during the affordable housing fair in
Swakopmund in 2009), the project has not been taken
forward, apparently due to different priorities of the
Swakopmund municipality.
In addition, other private sector initiatives exist that
aim at improving the quality of affordable housing,
such as Kavango Brick (K-Brick). K-Brick focuses on the
development of locally-produced bricks, that are easy to
construct and of high quality. K-Bricks aims to set up
training centres to train youth in bricklaying. Further-
more, K-Brick is active in trying to improve general
quality standards in Namibia, through their product,
but also through advocating a quality regulation
system.
Besides these specific initiatives, commercial banks
are active in the mortgage lending market. The Bank of
Namibia provides data on the total amount of home
loans provided, which shows an annual increase of
11.9 percent in value per April 2011. Unfortunately this
data does not provide insight into the values of home
loans provided. However, the FNB, who is market
leader for home loans provision in Namibia24, has
provided data on their mortgage provision, including
24 The data from Bank of Namibia of April 2011 shows that the
FNB has the largest market share in home loans of 38.6 percent,
followed by Standard Bank: 26.1 percent, NedBank: 13.5 percent
and Bank Windhoek: 21.7 percent.
22
scale and value. This shows that despite a recent
trend towards the higher end of the market25 in 2010
the FNB provided 184 mortgages with a value below N$
50,000. Although we cannot say the exact proportion,
some of these loans have been provided for new homes.
The Bank of Namibia also states that although there are
barriers in the area of providing loans to low income
earners (such as the limited ability to provide capital),
it has seen improvements in recent years in the
provision of mortgages to this income group.
25 House shortage keeps prices high, The Namibian 24 February
2011
23
5 Research findings
5.1 Introduction
This chapter will present the findings of the research,
based on stakeholder interviews, data analysis, reviews
of reports and a consultative workshop with the
stakeholders. Housing is a complex area, which touches
on many different topics. The findings are therefore a
collection of eight different key findings:
"Little and ambiguous information available
"Slow delivery and questionable value for money
"Limited availability of serviced land
"Mismatch between supply and demand
"Limited use of alternative and local materials and
technology
"Limited attention for integration
"Little use of private sector know how and resources
"Focus on home ownership
"Limited access to banking
5.2 Little and ambiguous information
available
When trying to gather and analyse data, it became clear
that although there is very clear data available on some
programmes, such as the NHE house building activities
and the Shack Dwellers Federations projects, no data is
publicly available on the Build Together Programme.
Although the MRLGHRD has provided us with data, it
was not possible to verify this data through any
publicly available reports or to separate this into
annual data. In addition, we have not been able to
access any information regarding the evaluation of the
BT programme, which apparently led to the decentrali-
sation of the programme. As the BT programme in
terms of funding is the largest government-funded
housing programme, this makes it very difficult to
objectively analyse the programme and draw conclu-
sions on its delivery26.
Secondly, a plethora of government targets on housing
exists, varying from one policy document to the other,
without clarity on how these targets relate to each
other, as is illustrated by the table below. Besides
making it difficult to assess if government has met its
targets, it provides a confusing picture on governments
ambitions in this area. Moreover, if government wants
to address the backlog in housing of 80,000, the targets
are nowhere close to achieving this.
5.3 Slow delivery and questionable value for
money
Although it has not been possible to provide insight into
the recent delivery of the Build Together programme,
the data from the NHE shows a decline in the delivery
of housing units through the NHE. The average number
of houses delivered between 1990 and 2002 was 600
houses per year, compared to the average of 253 houses
per year since 2003. Compared to the target of 1,200
houses per year, the NHE is not even close to delivering
the targets they state in their annual reports.
26 Although currently there is no public information available on
the delivery of houses as part of the BT programme, the Minister
of Regional, Local Government and Housing, Dr. Jerry Ekandjo
has requested on 23 August 2011 that Local Authorities draw up
reports on how they spent the Build Together funds provided
by central government during the 2009/2010 and 2010/2011
financial years (Informanté, 25 August 2011).
Table 5: Summary of governments targets on housing
Document Number of Housing Units
National Housing Policy (2009) 2,200 per annum
Vision 2030 (2004)
BTP: 3,200 per annum until 2006
NHE: 7,937 houses (not clear by when)
1,000 affordable houses are constructed by 2006
Budget document 1,300 housing units delivered per annum until 2014
TIPEEG 1,507 low cost housing units delivered per annum until 2014
24
When considering value for money, Chapter Four
provided an insight into the subsidy and equity invest-
ment (shares) that government has provided to the NHE,
and compared this to the number of houses delivered.
This showed a total government contribution of N$
16,522 per house, consisting of equity of N$ 10,881 and
a subsidy of N$ 5,641 per house27. It is assumed that this
funding is focused on the running and the overheads of
the NHE, as beneficiaries pay for the full value of
building the house. If one would assume that the
government would benefit from its shareholding in the
NHE, one should only consider the subsidy element of
N$ 6,253, which does not seem extremely high. How-
ever, so far, government has not received any returns on
its investment. In addition, it is debatable if the subsidy
is targeted at the population that needs it most, which
will be discussed later in this chapter.
With regards to the Build Together programme, the
previous chapter showed that government provided an
average contribution of N$ 16,224 per house during the
period 1998 2010 for administration of the pro-
gramme. Considering that this is a loan scheme, with
loan values between N$ 5,000 and N$ 40,000, which
are paid back by the beneficiaries, this can be consid-
ered a relatively high contribution per house.
Besides governmental initiatives, other initiatives such
as the Shack Dwellers Federation have delivered
steadily over the years. Although a small player in the
overall market and targeting a different income group
than the NHE, the recent house-building activities of
the SDFN have led to a higher number of housing units
27 This was calculated by taking the total government contribution
since 1990 (in 2011 values), divided by the total number of
houses delivered. It therefore purely focuses on the government
contribution and does not take into account other funding that
the NHE might have received.
delivery in the last year than the most recent average of
the NHE: the SDFN delivered 366 houses between July
2009 and June 2010, compared to an average of 216 per
year through the NHE28. The cost to government (in the
form of an annual subsidy to the Twahangana Fund of
the SDFN) per house is estimated at N$ 3,791, which is
less than a quarter of the government investment into a
BT house29. It can therefore be concluded that govern-
ments investment into the SDFN is most efficient at
creating housing opportunities for the largest number
of people, compared to both the BT programme and the
NHE, as illustrated in the table below.
In addition, the private sector seems to be contributing
to affordable housing as well. Although limited
publicly available data exists on the volume and value
of mortgages supplied, the FNB has made data available
that indicates that in 2010, 184 mortgages with a value
of below N$ 50,000 were supplied. Some of these
mortgages might have been provided for home improve-
ments, which makes it difficult to set a specific amount
for the provision of low-value mortgages.
Despite the plethora of targets, we can conclude that
government is not even close to meeting its targets,
especially not if it wants to catch up with the backlog
of over 80,000 houses.
5.4 Limited availability of serviced land
The limited availability of serviced land, and hence the
increasing price for serviced land, was identified by all
stakeholders as the key barrier in delivery of housing in
Namibia. There is a range of factors that contributes to
28 This figure was provided by the NHE for the period of 2009.
29 The SDFN receives additional funding from other sources.
The amount provided here purely considers the governments
contribution to the programme.
Table 6: Overview of government contribution to programmes
Programme Estimated government contribution per housing unit delivered
Cost of a house to
beneficiary
Most recent
annual delivery* Notes
NHE N$ 16,522 > N$ 100,000 129**
N$ 10,881 equity
investment,
N$ 5,641 subsidy
Build Together
Scheme
N$ 16,224
Between N$ 5,000
and N$ 40,000
-
No data available
on annual delivery
SDFN N$ 3,791 Around N$ 25,000 366***
* Of which information is available
** 2007/2008
*** 2009/2010
25
the lack of availability of serviced land and this has also
been recognised by the Minister of Regional and Local
Government and Housing30. Most importantly, the
process of acquiring land is lengthy, time-consuming
and has not evolved with development. The upcoming
Urban and Regional Planning Bill does offer hope for
some improvement by combining parts of the approval
process to one committee, rather than separate commit-
tees. However, a reduction in the period of land acquisi-
tion to less than six months, as stated in the National
Housing Policy, seems a long way away.
In addition, respondents were of the view that there is a
lack of qualified personnel in this area, and identified a
need for more land surveyors. This lack of capacity
might partly explain the Local Authoritys reluctance
in servicing land, combined with a lack of financial
resources to provide the upfront capital to service land.
Government has decided to provide the NHE with a
capital injection to service land, which could alleviate
part of the problem in the short term.
Another key issue with regards to land is the minimum
plot size of 300 square metres as prescribed by the
National Housing Policy. This requirement is generally
seen as negative, leading to lengthy rezoning processes
and adding further time before building can start.
5.5 Mismatch between supply and demand
The following triangle shows that there is a mismatch
between supply of housing and demand, especially in
the lower income groups.
Figure 13: Supply and demand of housing (FNB, 2011, Kalili,
2008)
30 In a recent speech, Minister Ekandjo stated that the period of
land planning and development is extremely lengthy, Barriers
to affordable housing must be reviewed, The Namibian, 26 May
2011
The triangle, combined with the data on the delivery of
housing units through government-funded pro-
grammes, highlights the following issues:
"although the BT programme and the SDFN focus
on the income groups with the largest backlog in
housing, the actual number of housing units
delivered through these programmes is too low to
make a significant impact on the backlog
"the NHE focuses on population earning more than
N$ 5,000 a month, which is less than 13% of the
total population. The backlog in this category is
minor (4,000 houses) compared to the estimated
backlog in the lower incomes (75,000 houses). In
addition, banks are moving into this area as well,
with consequently less need for the NHE to be
active in this section.
"There is little on offer for the population with an
income between N$ 3,000 and N$ 5,000
5.6 Limited use of alternative and local
materials and technology
Government has invested N$ 67 million into the
Habitat Research and Development Centre, making it a
regional example of excellence in the use of alternative
technologies and local materials. Apart from a few
municipalities actively using some technologies, such
as Windhoek and Swakopmund, who are making use of
the dry Otji-Toilets, there is very little interest in using
alternative technologies and local materials in the
implementation of the NHEs activities or the BT
programme. With the exception of the promotion of
alternative sanitation options through the Ministry of
Agriculture, Water and Forestrys water and sanitation
policy, government is not actively promoting these
technologies and not using the full potential, despite
the investment that continues to go into the HRDC.
5.7 Limited attention for integration
Due to the limited availability of serviced land,
housing projects tend to be developed wherever land is
available, rather than integrating projects with existing
or future developments, despite that integration with
commercial and public amenities such as shopping
services, public parks/play grounds is mentioned
specifically within the National Housing Policy. On
another level, government projects have not placed any
emphasis on integrating housing for different income
levels, a practice that is quite common in other coun-
Monthly income: < N$ 1,501
52% of population
Monthly income: N$ 1,501 - N$ 4,600
35% of populations
Monthly income: N$ 4,601 - N$ 10,500
7.2% of population
> N$ 10,500
5.7% of population
Estimated backlog of houses:Housing nance oered by:
BT
SD
FN
?
NH
E
Ba
nk
s
700
4,000
30,000
45,000
26
tries31. Namibia, with its status as most unequal
country in the world32, is therefore missing out on a
tool that could help deal with Namibias legacy of
segregation and inequality.
5.8 Little use of private sector know how and
resources
The National Housing Policy welcomes the involvement
of the private sector. However, it explicitly states that it
envisages private housing developers and commercial
banks to serve predominantly the high to upper-hous-
ing market segment. Although undoubtedly this is the
most attractive market segment for the private sector,
government has not provided incentives for private
sector to be active in the middle and lower segments of
the market. Despite initiatives from the private sector
for example the previously mentioned proposal for
affordable housing in Swakopmund, as developed by
Fritze & Quelle and collaboration between the private
sector and the HRDC in building show houses the
government is currently not utilising private sector
expertise and resources to scale up delivery in the
lower end of the market.
5.9 Focus on home ownership
There is a strong focus on home ownership, both
through government and as expressed by stakeholders.
However, for a large part of the Namibian population it
31 For example, in the UK, Malaysia and the Philippines
requirements exist to combine housing for different income
groups, see also the examples in chapter 7.
32 The UN Human Development Report 2010 reports a gini-
coefficient of 74.3 (UNDP 2010)
might not be achievable to own a home. In addition,
changing lifestyles might ask for more flexible prod-
ucts, such as (subsidised) rental housing or rent-to-buy
schemes, which are currently limited.33
5.10 Limited access to banking: real or
imagined?
Although the FNB data on mortgages outlined in the
previous chapters shows that banks are active in the
lower end of the market, the majority of Namibians are
not confident that they will be able to access loans. For
example, data from the Windhoek Household Survey
indicates that 57 percent of the surveyed population
states that they think it is extremely unlikely that they
would be able to access a loan, and only 19 percent felt
that it was somewhat likely to extremely likely that
they would be able to get a loan. Although there is a
general sense by the Bank of Namibia that commercial
banks are providing mortgages to people who would
previously not have been able to access mortgages, it
might be that there is a low level of knowledge on the
ability to access mortgages at banks, which limits
peoples interest in applying for a mortgage. This is also
supported by internal research by the FNB, which
suggests a generally negative attitude among Namib-
ians towards loans. The FNB stated that although many
Namibians feel that they would not qualify for a loan,
very few have actually been declined.
33 Note that the NHE has started with rental housing in Eenhana
and has received substantial interest in their rental products.
27
6 Conclusions
6.1 Introduction
The previous chapters provided insight into the
housing situation in Namibia, including the key
findings of the research. This chapter will focus on
providing conclusions based on the research, and will
be followed by recommendations in the next chapter.
6.2 Good intentions and awareness of issues
The government has put in place an elaborate and
detailed housing policy, which was revised in 2009.
Government has repeatedly announced housing as a
priority for Namibia, stating that it would contribute
both to economic development and poverty alleviation.
In addition, Government seems well aware of the issues
in the delivery of housing, as evidenced by recent
statements from Minister Jerry Ekandjo, when he
expressed that the period of land planning and devel-
opment is extremely lengthy and that more account-
ability and better implementation of the BT programme
needs to be put in place34.
6.3 Policy & delivery is making little impact
However, despite the goodwill expressed by the
government and a sensible housing policy, the last
twenty years have shown little improvement in the
housing situation, with government projects delivering
too few housing units to make a real impact and many
initiatives from the National Housing Policy not
moving forward. With an estimated backlog of 80,000
houses of which the majority in the low-income
segment average annual delivery of 457 houses by the
NHE is not going to make a real difference to economic
development or poverty eradication.
6.4 Value for money
In terms of value for money of governments investment
into housing, it is difficult to make a statement about
the largest government programme, the Build Together
programme, as no transparent data is available on this
programme. However, with the data provided by the
MLRGHRD, we have calculated the total government
spend on the programme per house delivered. This
leads to a government contribution per house of N$
34 Barriers to affordable housing must be reviewed, The Namibian,
26 May 2011 and How did you spend Build Together millions,
Informanté, 25 August 2011
16,224 during the period of 1998 2010, assumed to be
for the operation of the programme. This can be
considered relatively high considering that the price of
house construction is between N$ 5,000 and N$ 40,000
(which is paid for by the beneficiaries), and considering
that the BT programme is a revolving loan scheme.
The NHE on the other hand provides clear and trans-
parent data, which enabled us to make an evaluation of
the government contribution to each NHE house
delivered between 1990 and 2010. This shows an
average government contribution of N$ 16,522, consist-
ing of N$ 10,881 equity investment and N$ 5,641
subsidy, for their operations. Although the subsidy is
relatively low on the value of the house (which is
generally over N$ 100,000), the equity part is compara-
tively on the high side, considering that government
has not received any dividend from the NHE since its
inception.
Government also provides an annual subsidy into the
loan fund as run by the Shack Dwellers Federation of
Namibia. This has provided quite an efficient way of
delivering housing for low income earners, with an
average government contribution of N$ ,791 per
house35. In addition, the SDFN, despite being a small
organisation, has been able to build 366 housing units
in 2009/2010, a number that is higher than the NHE
housing delivery in 200936.
6.5 People who need it most
One of the key goals of Namibias National Housing
Policy is to reduce poverty. However, the research in
this report has shown that only a very small amount of
people especially in the lowest income groups are
actually able to access housing through the government
funded programmes. In 2007/2008 only just over 2% of
the people that are estimated to need housing in the
lowest income groups, were able to access housing
35 This excludes any funding from other sources and purely
considers the contribution that the Namibian government has
made.
36 NHE delivered 216 houses in 2009, and had an average housing
delivery during between 2003 and 2007 was 220 houses per year.
2011 of 253
28
through the government funded programmes37. In
addition, the NHE focuses on an income group that
only represents around 13 percent of the population,
whereas there is a much larger, lower-income segment
of 87% of the population where the largest backlog
exists. We can therefore conclude that government is
not focusing its resources on the people who need it
most and is thus unable to achieve its goal of poverty
alleviation.
One explanatory reason that was raised during the
consultative workshop is governments focus on
products for people that have some form of income.
However, with 51 percent (Republic of Namibia, 2010)
unemployment, there is a large group of people that are
not able to pay for housing. For this group different
solutions need to be provided by government, for
example through an intensified upgrading of informal
settlements38. Only once this income group has been
able to reach a certain development status and is able to
earn an income, there are options for them to move to
loan schemes such as the BT scheme or the SDFN
projects. This theory links in to the concept of consid-
ering housing and shelter as a basic human right, a
topic that the University of Namibia is currently
researching further.
6.6 Issues with land availability
The key reason quoted across the board for the slow
pace of delivery, is the lack of serviced land available
in Namibia. Although government is aware of the issue,
little has changed over the last twenty years, with the
process of acquiring land sometimes taking years
before development can start. The upcoming Urban and
Regional Planning Bill is expected to make some
improvements, together with a subsidy to the NHE for
servicing land. However, government needs to make
further changes to shorten and simplify the process to
ensure a large-scale increase of land to enable further
housing developments. It should look to develop
around 5,000 plots per annum to enable to catch up
with the back log in housing delivery.
37 Calculated over 2007/2008 using NHE, BT (as provided by
MLRGH) and SDFN data, and using a backlog of 75,000 in the
income segment up to N$ 4,600.
38 Unfortunately no data is available on the delivery of the informal
settlement upgrading programme
6.7 Missed opportunities
A key conclusion from the research undertaken is that
government is missing out on a range of opportunities.
First of all, despite having invested N$ 67m into the
Habitat Research and Development Centre, government
is not reaping the benefits of this investment: neither
NHE nor the BT programme actively encourage the use
of solar power or other alternative technologies or
materials. Secondly, there is very little emphasis on
using the capability and resources of the private sector.
Although the private sector tends to prefer higher
margins39, rather than the affordable housing market,
government is missing out on opportunities to use
private sector know-how and provide incentives for the
private sector to get involved in this section of the
market. This links in to the third missed opportunity:
using housing as a tool for integration between differ-
ent income groups. Where other countries are setting
requirements for private developers to dedicate a set
percentage of housing developments to affordable
housing, the government seems to lack any attention
for integration of different income groups. In a country
that is historically segregated, this is a serious lack of
the use of available tools to make changes.
Overall, it is clear that the current approach has not
delivered the results that are needed to achieve
governments objectives. Government needs to review
the focus of its programmes to address existing failures
in the market, such as the provision of land, finance
and infrastructure. In addition, it needs to drastically
increase the scale of its programmes if it is serious
about delivering housing for its population, and work
closely together with the other actors in housing. The
good news is that this is a good point in time for
government to do exactly this: TIPEEG provides the
resources and can kick-start a new era of government
housing policy, with results and delivery that actually
make a difference to the population that needs it most.
The next chapter provides recommendations to
government as well as other actors in the housing
market, to make this change happen.
39 The focus on higher margins is partly a result of the limited land
supply. Private sector will aim to maximise its returns on the
limited land available by building more expensive properties
with higher margins.
29
7.1 Introduction
This final chapter provides recommendations for
improvement of the delivery of housing in Namibia,
with the aim to increase the supply of housing and
ensure efficient use of government funds. The recom-
mendations are based on the concept that government
should focus on areas where the market is currently not
delivering, such as providing serviced land, reaching
the lowest income sectors and using housing as a tool
for integration. However, the housing market exists of a
multitude of actors, and the recommendations are
therefore not solely targeted at government. The table
below provides an overview of the recommendations
and the relevant actions and parties for each
recommendation:
7 Recommendations
Table 7: Recommendations and relevant actors
GRN LAs NHE Financial institutions
Private
sector
(contractors)
HRDC SDFN (and other NGOs)
Increase data
availability
and
transparency
"Publish
annual
results
"Review
targets
"Publish
annual
results
"Ensure
availability
of recent
annual
reports
Scale up
delivery
"UseTIPEEG
funding to
boost
housing
delivery
"Include
affordable
high density
housing
"Include
affordable
high density
housing
Increase the
availability
of serviced
land
"Simplifyand
shorten land
acquisition
process
"Combine
vision on
housing and
transport
"Receive
training on
land
servicing
and selling
"Fulfill
commitment
to service
land
"provide
long-term
liquidity to
finance land
servicing
and
acquisition
Reach the
people who
need it most
"Implement
financial
instruments,
such as
home loan
guarantee
trust
"Focuson
upgrading
informal
settlements
"Include
alternative
options
(rent-to-buy)
"Shiftfocus
to lowest
income
group
"Include
alternative
options
(rent-to-buy)
"Improve
awareness
on mortgage
availability
"Include
alternative
options
(rent-to-buy)
"Work
together
with GRN
on upgrad-
ing informal
settlements
30
The sections below further describe each recommenda-
tion, the relevant actions and the parties involved.
7.2 Increase data availability and
transparency
Government needs to provide better insight into the
Build Together programme. As the largest government-
funded programme, government is expected to publish
annual results of housing delivery. Government should
cascade targets to local authorities, who should report
on progress in their annual reports. In addition,
MRLGHRD should collate the data and include this in
annual reporting, such as the Accountability Reports.
This is in line with the recent request by Minister Jerry
Ekandjo to Local Authorities to draw up reports to
explain how the Build Together funds were spent.
In addition, government should review its targets on
housing and ensure that they are aligned, realistic and
provide a basis for the targets for example to catch up
on the backlog of housing.
7.3 Scale up delivery
It is evident that the current pace of delivery is not
going to make a real difference to the housing situation
in Namibia. The availability of TIPEEG funding should
Promote
alternative
and local
materials and
energy use
"setrequire-
ments for
use of solar
power and
dry sewage
systems for
all govern-
ment
projects
"Further
develop
building
regulations
on quality
"Includesolar
power and
dry sewage
systems in
projects
"Includesolar
power and
dry sewage
systems in
projects
"Work
together
with NHE
and LAs to
further roll
out use of
solar power
and dry
sewage
systems
Use housing
as a tool for
integration
"setrequire-
ments for
private
develop-
ments to
include a
certain
percentage
of affordable
housing
"combine
different
income
segments in
housing
develop-
ments
"combine
different
income
segments in
housing
develop-
ments
Utilise
private sector
resources
"invite
private
sector
proposals
under
TIPEEG
Revive the
National
Housing
Advisory
Committee
"toinvite
representa-
tives of all
housing
market
actors to
participate
in a forum to
discuss new
develop-
ments and
suggestions
31
be used as an opportunity to scale up delivery. Current
TIPEEG documents recognise housing as a priority,
with additional budget for housing, but the targets are
not ambitious enough to provide a real change to the
delivery of housing. Housing delivery is an excellent
opportunity to create employment while at the same
time increasing the number of houses available.
Although the employment might not necessarily be
sustainable in the long-term, it will create skilled
people that can further increase their employment
opportunities in the future.
In addition, the key actors in delivery, government, local
authorities, NHE and the private building industry
should not shy away from higher-density housing, to
meet the increasing demand of urban populations.
Examples of other countries have shown that it is
possible to deliver a large number of housing units, and
thus serve a large group of people, through high-density
housing. See also the example of Ethiopia in Box 2.
Naturally, as with all housing, there needs to be atten-
tion for quality and location, which also became clear
during the project in Ethiopia. Coordination between
the different parties involved is therefore crucial for the
success of high density housing (see also section 7.9).
Furthermore, the recent statement by Minister Jerry
Ekandjo to develop a range of pre-designed houses of
different sizes could scale up delivery, as it would
make the process of delivering houses simpler and
possibly more cost effective.
7.4 Increase available serviced land
As already promised by the Minister of MRLGHRD and
as stated in the National Housing Policy, the process of
acquiring land needs to be simplified and shortened, to
allow more serviced land to come on the market within
shorter time frames and create more competition across
house builders. This includes the abolishment or the
revision of the minimum erf size. Government should
treat this as its first priority: without changing the
process of land acquisition, housing delivery will not
be able to be scaled up. Alongside a revision of the
process, local authorities need to be trained to be able
to participate in the process of servicing and selling
land. In the short-term, the extra funding to the NHE
could provide some relief. However, government and
the NHE need to ensure that the funding going to the
NHE is used efficiently by setting clear targets. How-
ever, in the long-term, financing of land should be left
to the banking sector, who can provide long-term
liquidity without extra strain on governments budget.
Another element of making more land available is
linking up with existing and planned infrastructure.
For example, links with public transport could make
land that is currently difficult to access more
attractive.
7.5 Reach the people who need it most
To make a real impact on poverty reduction and to
ensure that the major backlog in the lowest income
groups is addressed, a number of options are available.
First of all, it seems evident that the NHE is focusing
on the wrong target group, as their products are
unaffordable for the majority of the population, where
the highest backlog in housing exists. In addition, it
seems that the private sector is moving into the
segment that NHE currently services. The focus of the
NHE should therefore shift to the lower income groups.
This might require a change in the NHEs approach,
with a movement to lower cost (but high quality)
housing, with more focus on alternative energy sources
Box 2: High density housing in Addis Ababa,
Ethiopia
Ethiopias Integrated Housing Development
Programme proved to be an effective tool for
affordable housing delivery at large scale: the
programme delivered 171,000 housing units in
five years. Housing was provided in
condominiums, and aimed at the low- and
middle-income groups, while creating jobs and
promoting the development of small enterprises.
The programme has greatly increased the
number of homeowners, and benefited the
housing market by increasing the supply of
owner-occupied housing and rental units.
Furthermore, the programme managed to build
the capacity of the local construction sector,
while addressing the existing slums and
creating employment opportunities. Issues that
arose during the programme are the unexpected
higher costs of the development, making them
less affordable for low-income earners. In
addition, the location of the condominiums on
the periphery of Addis Ababa increased
transport costs for the people living there.
(UN Habitat, 2011)
32
and materials.
Secondly, access to finance could be further improved,
to ensure that people with incomes over N$ 5,000 can
access their housing needs fully or partly in the private
sector. There is an important role for the financial
institutions to play, in making consumers more aware
of the options of mortgage availability. In addition,
government states in their Housing Policy the set up of
a home loan guarantee trust. Assuming that this
means that government would provide a certain
guarantee to financial institutions as part of this
scheme, this would be able to mobilise further private
sector resources. A more direct option would be to
provide capital subsidies for low-income mortgages. In
this respect Namibia can learn from the long experi-
ence from the South African government in this regard,
where this is a key component of housing policy (see
Box 3).
Thirdly, government should not just focus on home
ownership, but should in close consultation with the
private sector, NGOs such as the SDFN, and consumers
- develop a housing market that includes other alterna-
tives. First of all, for those without any form of income,
government should provide further programmes to
upgrade informal settlements as a matter of priority.
This could be combined with employment and training
opportunities for people living in informal settlements,
and lessons can be learned from the experience by
NGOs such as the SDFN and the Clay House project.
Another option is the further expansion of subsidised
rental, which could be made available to people with
low incomes. In addition, government should offer
products for people who might not be able to buy at this
point in time, but might be able to do so in the future.
For example, rent-to-buy schemes (see Box 4), where the
tenant has a right to buy the property at a later point
could be an interesting option for middle-income
earners.
7.6 Promote alternative and local materials
and energy use
Through continued close cooperation with the HRDC
and for example through setting a certain percentage of
all governmental projects that should use solar power
(see Box 5) and dry sewage systems, government can
further harvest the benefits from its investment into
the area of alternative and local materials and tech-
nologies. Although this might require a higher upfront
Box 3: The Individual Housing Subsidy
Scheme in South Africa
South Africa provides capital subsidies to
first-time home buyers with an income of less
than R3,500 per month. The amount of the
subsidy for the building of a house is currently
R55,706 for a house of 40 square metres.
Beneficiaries with incomes up to R1,500 do
not need to provide an own contribution, for
incomes between R1,501 and R3,500 an own
contribution is expected of R2,479.
Interestingly, private-sector developers
wishing to develop low-cost houses on their
land may also apply to reserve individual
subsidy funding for their low-income clients.
The subsidy scheme has been able to improve
access to mortgage finance for low-income
earners, and has delivered an impressive
number of houses: Between 1995 and 2001,
one million subsidies were allocated. Of these,
90 percent were allocated to people earning
less than R1,500 per month; 8 percent to
people earning between R1,501 per month and
R2,500 per month, and the remainder to those
earning between R ,500 and R3,500 per month.
In the early stages of the project, the large
scale of the programme led to a concentration
of low-cost housing of sometimes variable
quality and location. However, to deal with
quality issues, the South African government
established the National Home Builders
Registration Council in 1995, with the aim of
protecting home owners from inferior
workmanship. (UN Habitat 2008, www.dhs.
gov.za, Department of Human Settlements,
2010)
Box 4: Rent to Buy schemes
Rent to Buy schemes are typically schemes
whereby a tenant rents a house for a certain
period (for example five years) after which the
tenant can buy (a share of) the house, often at
a discounted price. During the period of rental
payments, the tenant can prove affordability
and creditworthiness to improve the chances
on securing a mortgage at a later stage and has
the ability to save up for a deposit.
33
investment, it will decrease the costs in the long term
and has the potential to decrease the cost of servicing
areas, which in turn could increase the amount of land
available for development.
Building regulations could also provide provisions for
the promotion of alternative technologies. Also, if more
emphasis would be placed on quality of building in
Namibia, it is likely that banks will be more interested
in providing mortgages and more sustainable long-term
housing would be available. It is therefore important
that building regulations are aligned with mortgage
requirements. Although government will take the lead
on regulation, other parties, such as Kavango-Brick
have done some preliminary work on building regula-
tions and can make a valuable contribution to the
further development of this type of regulation in
Namibia.
7.7 Integration
Housing policy can be used as a tool to facilitate
integration between different income groups. For
example, if the NHE would focus on the lower income
segment, they could combine housing from different
income segments in one development. The same would
hold for private sector parties applying for planning
permission: government could request for example that
20 percent of housing development is within a set
affordable range, as is common in Malaysia, the
Philippines and the United Kingdom (see Box 6).
Through this approach, higher-income housing could
cross-subsidise housing for lower-income segments,
through close cooperaton with the private building
industry. However, there are negative externalities that
need to be managed closely, such as a potential
negative impact on the price of the higher value
properties.
7.8 Utilise private sector resources
Further to requirements for the private sector to
include housing for different income groups in any
housing development, government can invite the
private sector to provide proposals under TIPEEG. This
funding, when used efficiently, could generate interest
from the private sector to deliver affordable housing in
a quick and efficient way, and could generate short-
term employment opportunities, while delivering
long-term housing. In addition, other incentives could
be developed to get the private sector more involved,
such as the a system similar to the South African
subsidy scheme, where developers can apply for
subsidy if they provide housing for low-income groups
(see Box 3). However, it should be noted that this
should be developed as a short-term incentive scheme,
to get the private sector involved in this section of the
market with the aim to further develop this market
segment.
Box 5: Solar Power in Namibia
Namibian-based Emcon Consulting Group has
done several studies for the government on the
efficiency of solar power. One such study
focuses on solar water heaters, which was
done in 2005. This study shows that in the
majority of Namibia, the break-even point for
solar water heaters is within 5 years. They
also state that if the initial cost of the solar
water heater would be included into housing
loans, the break even point from the
perspective of the consumer is zero years, as
immediate cash flows accrue to the home
owner. The report further highlights other
benefits, such as a reduction in green house
gas emissions and recommends active
promotion of solar water heaters through
among others the National Housing
Enterprise (Ministry of Mines and Energy,
2005).
Box 6: Integration through private sector
involvement
Both the governments of Malaysia and the
Philippines require that all private sector
housing developers dedicate 20 percent of the
housing units at government-determined
prices (UN Habitat, 2008, Ballesteros, 2010).
Furthermore, in the UK, the planning act
allows a local planning authority to enter into
a legally binding agreement with a developer
to grant planning permission based on a
number of conditions. This agreement is a way
of addressing matters that make a
development acceptable in planning terms,
and often includes provisions of affordable
housing or other services, such as recreational
and educational facilities (www.idea.gov.uk).
34
7.9 Revive the National Housing Advisory
Committee
Although a National Housing Advisory Committee
(NHAC) is in place, it became clear during the consul-
tative workshop for this report that this committee is
not an active participant in the housing dialogue. There
was a call among the stakeholders attending the
workshop for more communication between the
stakeholders, on all areas of housing. It would therefore
be a logical step to revive the NHAC and to ensure that
it undertakes the actions as outlined in the National
Housing Policy, such as organising annual housing
forums and conferences and providing a platform for
the various stakeholders to interact. The NHE, as the
key body responsible for governmental housing
delivery, could take the initiative for such a committee,
whilst inviting all relevant parties to participate.
7.10 Areas for further research
The goal of this research has been to provide a global
overview of housing in Namibia, and to review housing
policy and delivery in its entirety. As a result, the
research has not been able to go into depth of all issues.
Therefore, we recommend that the following research
should be undertaken to further progress housing
delivery in Namibia:
"Detailed review of the land acquisition process,
including a review of the cost drivers of land and
researching best practices from other countries,
with the aim to develop recommendations for
simplification and shortening of the process
"Need for housing in the lowest income segments of
the Namibian population: quantity, quality and
ability to pay for housing
"Research into the demand and acceptance for other
forms of housing besides home ownership, such as
subsidised rental housing and rent-to-buy schemes
35
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Annex I: Interviewed Stakeholders
Organisation Name
Bank of Namibia Michael Mukete
Ntwala Mwilima
Ebson Uanguta
Clay House Project Peter Arndt
FNB Namene Kalili
Fritze & Quelle N. G. Fritze
Habitat Research and Development Centre Andreas Wienecke
K Brick Housing James Arm
Heinrich Schroder
Ministry of Regional and Local Martin Shikongo
Government, Housing and Rural Development
National Housing Enterprise Uazuva Kaumbi
Polytechnic of Namibia Andrew Niikondo
Shack Dwellers Federation/ Namibia Housing Action Group Anna Müller
Windhoek City Council
37
Annex II: Participants of Consultative Workshop
Date: 23 June 2011
Organisation Name
Bank of Namibia Ntwala Mwilima
Helvi Filipus
Floris Fleermuys
Evangelina Nailenge
Habitat Research and Development Centre Andreas Wienecke
Institute for Public Policy Research Monica Koep
Taimi Itembu
Graham Hopwood
Els Sweeney-Bindels
K Brick Housing James Arm
Shack Dwellers Federation/ Anna Müller
Namibia Housing Action Group David Shikoyeni
Braam Harris
National Assembly Chippa Tjirera
Anton von Wietersheim MP
National Housing Enterprise Uazuva Kaumbi
Webster Gonzo
Stubenrauch Planning Daleen Brand
United Nations Development Programme George Kozonguizi
University of Namibia John Nakuta
Windhoek City Council David Negonga
World Bank Philip Schuler
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