Notes on the National Housing Seminar,
Windhoek, 19-20 April 1990
Jochbeth Andima
October, 1992
NEPRU TRAVEL AND MEETING REPORT NO. 1
C:.J. .. P &. '
~.._-"' I' .. J
NTMR1
THE NAMIBIAN ECONOMIC POLICY RESEARCH UNIT
Postal: P.O. Box 40219. Ausspannplatz. Windhoek. Namibia
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@ Copyright 1992 by the Namibian Economic Policy Research Unit.
First published in 1992 by the Namibian Economic Policy Research Unit,
P.O. Box 40219 Ausspannplatz, Windhoek, Namibia.
Contents
1 . Opening by the Minister . . . . . .
2. Contributions by Community Groups
3. Financial Aspects ..... 2
4. Private Sector Involvement 3
5. Institutional Framework and Policy Options 4
6. Low-income Housing Policy in Zimbabwe ... 5
7. Housing Delivery Systems, Building Materials and
Infrastructure 6
8. Public Participation and Private Development 7
9. Policy Formulation and Coordination 7
10. Conclusions ........... . 8
iii
Preface
The National Housing Seminar was convened by the Ministry of Local
Government and Housing and held in Windhoek on 19-20 April 1990. This
brief report provides summary notes on the proceedings and the main themes
addressed.
1. Opening by the Minister
The seminar was opened by the Honourable Minister of Local Government and
Housing, Dr Libertine Amathila, who pointed out some of the problems in
the field of housing. The Minister identified the lack of a housing policy
as the main problem. She also identified lack of home ownership and use
of locally available material as problems. ~he prevailing mentality of
"top-down" management was also blamed for causing disorganisation of the
local communities and community workers were urged to mobilize the people
into self-help and other projects.
The Minister identified those who should be involved in the housing
projects as the people who the houses are to be built for, the private
sector, NGOs, churches, parastatals and employers.
On the issue of loans the Minister said that repayment of loans should
be made sui table to people's conditions, interest rates should be
appropriate and loan conditions should be explained to the people so that
they can understand them.
A system of looking after old people was also suggested as there are old
people who are no longer well looked after by relatives due to financial
and other problems.
2. Contributions by Community Groups
Community groups were also represented at the seminar. The RRR Committee,
which represented the returnees, pointed out some problems such as the
high expectations and urban orinetation of many returnees. Most returnees
are unable to get jobs and are therefore facing housing problems. Some
are reluctant to leave the secondary centres as they are better off there.
RRR would like to build some houses but they have a problem in obtaining
land and building materials. Constructions in rural areas will be
converted into development projects.
Other community leaders expressed their dissatisfaction about the
conditions of National Building and Investment Corporation (NBIC) [1 J
housing. They cited incidents were people pay for water and electricity
which has not even been installed and where some houses are built in
river-beds without the occupants-to-be knowing that. The building
structures of NBIC houses were also said to be very bad. Some of the
speakers even went to the extent of suggesting that NBIC activities be
terminated and an alternative be found.
The groups informed the seminar about their efforts in trying to help the
homeless and other low income earning groups with self-help projects and
how they "mediate" between the people and the housing authorities. The
municipal authorities were accused of cheating people because they
promised that people were going to own the houses after paying rent for
1. Now the National Housing Enterprise.
National Housing Seminar
a number of specified years and now the municipality seem to have changed
its mind. This was said to affect mainly the older people who cannot
afford to pay rent any longer and who are kicked out of their houses by
the municipalities.
The community groups represented were RRR, Saamstaan, Ondeitotela and
Hainyeko (Hakahana), the National Housing Committee and Kara Xaiseb
Housing of Mariental.
Both NBIC and the municipalities were blamed for being arrogant and
insensitive towards the people especially the blacks.
3. Financial Aspects
These issues were addressed by representatives from the South African
Development Bank, SWABOU in liaison with J. Nienhaber of Namib Building
Society and NBIC. The issues addressed by the SADB were the following;
3. 1 Housing policy:
derivative overall development policy,
housing goals,
situation analysis,
strategy and action formulation,
implementation, and
monitoring and adjustment when and where necessary.
3. 2 Why government policy:
government has got limited resources,
rapid urbanisation and potential squatting, and
low affordability and historical inequality.
3.3 Key policy principles:
people's participation i.e define role of public vs the private
sector,
prov~s~on of affordable and acceptable housing through honest
consultation with the communities,
stimulation of economic activity through local entrepreneurs, and
integrated approach i.e. addressing full participation.
3.4 Suggestions:
Project steering committees should be established with representation
at all levels,
Grant options to potential investors,
There should be access to social facilities and finance, but
subsidisation should only be a matter of last resort,
2
National Housing Seminar
The Government should allow existing system of finance to continue
and it should remove constraints, and
Collective responsibility.
The speaker from SWABOU spoke about "Building societies' participation
in low income housing". He cited housing prerequisites as:
serviced land,
affordable finance,
willing lenders,
competent builders,
conveyance of infrastructure, and
the maintenance of law and order.
At present their loan distribution pattern is mainly concentrated in the
Windhoek and Rehoboth areas. 80% of those who benefit from these loans
are white. Obstacles to greater participation in less affordable market
segments are costs, risk, return and borrower affordability, finance and
legal constraints. He also indicated that the housing problems cannot be
solved before unemployment.
Proposed solutions:
differentiated charges,
shield against risk,
collateral and subsidy shield for qualifying borrowers,
township development, and
adequate return and borrower affordability.
The NBIC speaker spoke on "Some ideas on housing finance in independent
Namibia". He said that the building industry is presently short of supply
and skilled manpower and there is a need for training and encouragement
of local manufacturers. He identified 60% of the population as being
unable to afford loans but he also warned against government subsidies
as being uneconomical.
Suggestions:
no rapid development change,
subsidies should encourage supply and not demand,
maintenance of balance between different sectors, and
support for NBIC policies.
4. Private Sector Involvement
This topic was dealt with by representatives from Nationwide Building
Project Management (NBPM) and NBIC. Some of the issues raised by the NBPM
representative were the following:
public and private sector should work together,
3
National Housing Seminar
the private sector did not have any housing policy to follow thus the
government needs to formulate housing policies and the private sector
should follow those policies,
employers should also play a role in housing e.g. by subsidizing their
employees' rents, providing houses etc,
the government should encourage private sector participation by giving
incentives,
there has been no market for low-income groups especially in housing,
communication between the government, private sector and the people
needs to be improved, and
household home ownership should be promoted.
The NBIC representative talked on "Site & service housing for the very
poor - an example". He showed slides of low-cost houses in the south.
However, at the end of his presentation it was pointed out by the
Honourable Minister of Local Government and Housing that the presentation
was unrealistic because she has seen the place and that housing project
benefitted only a few coloureds. The Minister's remarks were confirmed
by other people who have also seen the place.
5. Institutional Framework and Policy Options
This topic was presented by representatives from the NBIC and CABS
Zimbabwe. The NBIC representatives talked about the complexity of the
housing policy system and policy issues. He cited some of the complex
issues as being:
land,
technology,
social stratification (i.e. policy must aim for greatest good for the
majority of people),
organization,
community development, and
provision of infrastructure.
As regards standards of these aspects he pointed out that they should be
culturally compatible, socially responsive, economically feasible,
technologically appropriate and relevant at the time applied.
He identified policy issues to be considered as follows:
central policy approach: emphasis on product, process must be target
oriented,
institutional framework: role of central government, parastatals,
local authorities and the private sector,
home ownership: land tenure problems, need for rental accommodation
cost recovery vs subsidization,
private sector and financial institutions' participation,
mode of construction: self-help, building brigades, cooperatives, mass
contracts, and
4
National Housing Seminar
minimum standards.
The speaker on policy issues recommended the following:
public participation through partnership,
balanced policy,
minimum product which should be realistic and affordable,
policy must clearly define roles,
mortgageable land is important therefore the system must be
deregulated,
private sector participation must be encouraged,
extensive self-help schemes,
there should be no pre-occupation with minimum product,
subsidies should be eliminated especially in the macro-economy,
do not build unacceptable final products, and
plots should never be under 300 square meters (minimum size).
Issues to be considered include:
the provision of welfare housing,
housing options for singles and families,
should local government take over community development, and
should there be division between finance and development, currently
both under the NBIC.
6. Low-income Housing Policy in Zimbabwe
The Zimbabwean guest speaker spoke on "A review of Zimbabwean housing
policy and the roles of the public and private sectors". He told the
conference that when interest rates rose, the policy of 300 square meters
was introduced. Employers were granted limited tax incentives for them
to provide housing. Building brigades were introduced plus minimum rent.
During the mid-80s, the private sector could not cater for low-income
housing and this led to the building societies having to provide loans
to local authorities. Zimbabwe focuses on flexibility, mobilization of
public sector funding and serviced land. Unfortunately, local authorities
faces problems of bureaucracy which leads to delays.
The following aspect of the Zimbabwean Housing Policy were highlighted:
central government should be a facilitator rather.than a driving
force,
bureaucracy should be minimized,
decentralization,
tax and investment incentives,
remove or minimize subsidies as they discourage private sector
participation, and
Repayment discipline should be maintained.
5
National Housing Seminar
7. Housing Delivery Systems, Building Materials and Infrastructure
These issues were dealt with by representatives from the Southern African
Development Bank (SADB), NBIC and the Swaziland National Housing Board.
The SADB representative pointed out the following;
The development process should be legitimate, representative,
accountable, realistic and viable,
Housing strategy should be effective,
Policy framework must have direction and focus, the market must be
targeted and provision for implementation, monitoring and adjustment
must be made,
Delivery system= planning, design, financing, construction materials,
technology etc
Housing delivery = self build, mutual aid, self-help, job creation,
plot and plan, mass housing,
Housing strategy should be appropriate in terms of performance =
effective demand, market penetration, rate of delivery, employment
creation, cost effectiveness and post occupancy evaluation
(Performance of a policy or strategy must be seen by those whom the
houses are build for to have been successful),
Housing delivery evaluation = understanding the housing market,
evaluate performance, revise and change policy instruments, demystify
complexity of housing market, improve communication, enhance decision
making.
The NBIC speaker identified contemporary building materials as being;
Lime which he said was more viable in Namibia,
Cement which could be produced in the Karibib area,
Timber production which could be increased by planting eucalyptus
trees,
Steel and others such as plastic etc.
The guest speaker from Swaziland pointed out that few planners exist for
low-income housing, stressed the importance of being realistic in overall
plan and aiming standards at the majority of people.
According to this speaker, infrastructure standards depend on the
following:
Site location and cost of land,
Availability of primary infrastructure,
Socio-economic profile of target population,
Priorities and needs of target population,
Willingness to pay for services,
Minimum health requirements,
Maintenance capabilities,
The ability to upgrade initial services,
Cost allocation of infrastructure services and matching design
standards.
6
National Housing Seminar
8. Public Participation and Private Development
This topic was addressed by representatives from Kerry McNamara
Architects, Botswana Self-Help Housing Agency and Business Services.
The speaker from McNamara defined development as "a series of stages of
growth" and stressed that people should be given the right to develop.
People with more resources should help those with less resources.
Participation by different sectors was emphasized as was the need for the
country to develop its own resources thus reducing reliance on foreign
aid.
The guest speaker from Botswana spoke on "Self-help housing in Botswana"
In Botswana, low-income earners are defined as those earning between P40
and P200 (Aprox. RS0-250) per month. They had assistance from aid agencies
to upgrade Self Help Housing Areas (SHHA). The money was received through
the Ministries of Finance and Housing and Lands and it then trickled down
to local authorities.
The loan system is based on a loan of P1,200 (R1,500) per person. Plot
approval is done by the headquarters of the Housing Ministry through a
management committee. Private plans are accepted as long as they meet
government standards. Some of the problems faced by this government are
cost recovery, service delivery and SHHA areas.
The Business Service spokesman spoke on "the Private Sector Developers'
Role in Providing Low-Income Housing". He indicated that the private
sector has been reluctant to get involved in the housing market due to
political uncertainty, lack of knowledge on affordable housing, government
bureaucracy, lack of finance and high interest rates. He suggested that:
Government, private developers and building societies work together,
Government investigate with the private sector obstacles to housing
problems,
financial institutions provide finance, and
the government enter into joint ventures with the private sector.
9. Policy Formulation and Coordination
A member of the Low-Income Housing Policy Advisory Board listed the tasks
of the Board as having to look into the following:
by-laws and regulations,
standards towards designated areas,
sales of existing rental houses,
interest rates and repayment periods,
financial arrangements of central government,
recommendation on welfare housing policies,
housing levy,
7
National Housing Seminar
uniform plot pr1c1ng policy, and
private sector development.
The role to be played by the Advisory Board was according to the speaker
to:
keep policy makers informed on end-user attitudes,
evaluate the application of technology,
tap available local expertise,
facilitate better understanding between the different sectors,
provide unbiased analysis,
act as early warning system with regard to impending problems,
supply independent monitoring of ongoing policies and their
implementation,
keep monopolies in check and expose where necessary, and
organise structures.
The Low-Income Housing Policy Advisory Board was appointed by the interim
government immediately prior to the implementation of Resolution 435 and
it has therefore not functioned as such because that government was
dissolved.
1 0. Conclusions
The seminar was closed by the Honourable Minister of Local Government and
Housing who summed up the objectives of the seminar as "to learn and to
get to know each other". She emphasized, amongst other things, the
importance of team work and the involvement of women in the building
industry, recommending that women should get together to make bricks etc.
The Minister also indicated that her Ministry will embark on flexible
policies so that it will be easier for them to adjust to any problems that
may arise and it will also consider the suggestions made by the various
groups and organizations.
The seminar succeeded in bringing together the different groups from the
government, private sector and the public. This made an exchange of views
through discussion possible. It seems that at present the private sector
does not play any role in the low-income housing schemes but they
expressed interest to work together with the government.
The NBIC on the other hand seemed to be trying to blame the new government
for having raised a lot of expectations and that is "why the people are
complaining now". The reality is that the problem has been there and it
is only because the people did not get any attention from the previous
authorities.
The municipality did acknowledge some of the accusations from the
community groups and promised to listen to them in the future. On the
whole, the discussions were frank and educative. However, the NBIC
policies and activities need to be examined because many people do not
8
National Housing Seminar
seem to be happy with their services. What everyone seemed to agree on
is that there is need for improved communication and cooperation among
the various sectors and groups.
9
1,
TRUSTEES: HON. BEN AHAllHLA HON. KAIRE HBUENDE DR PETER KATJAVIVI
THE NAMIBIAN ECONOMIC POLICY RESEARCH UNIT
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Simon Stone, The Consumer Price Index and inflation in Namibia,
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Tor Sellstrom, Some notes on the Namibian economy two years after
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Tor Sellstrom, Observer s report on the Angolan elections, 29-30
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Susan Brown, Assessment of popular participation in the
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Mihe Gaomab, An analysis of the Interim Consumer Price Index,
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Tiny Dekker & Aenneli Hommes, The macro-economic effects of
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Eline van der Linden & John Orford, An evaluation of current
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Gender, research and planning
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Peter Amutenya, John Orford & Robin Sherbourne, Report on the
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Henning Melber, Population and development: a background report
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Peter Amutenya, Relocation of the Veterinary Cordon Fence: report
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