The International Finance Corporation (IFC) has released U.S.$50 million to increase access to affordable housing finance for over 4,000 Namibians.
Development Diaries understands that the member of the World Bank Group is carrying out this objective in partnership with pan-African finance organisation, Letshego.
The Namibian housing sector is characterised primarily by limited financial support for the low-income groups as well as limited capacity to meet the demand for land and housing development.
Although 78 percent of Namibians have a bank account, only 12 percent of households have mortgage-financed homes.
The majority of Namibians do not qualify for mortgages from commercial banks because they are often unaffordable, according to the IFC.
‘By supporting partners like Letshego to increase the availability of affordable housing loans, we hope to enable more individuals to access quality housing in Namibia’, IFC’s Country Manager for Eswatini, Lesotho, Namibia, South Africa and Zimbabwe, Adamou Labara, said in a statement.
IFC works with partners across Africa to help increase access to affordable housing including supporting the development of sustainable and responsible mortgage markets.
The Group Chief Executive of Letshego Holdings Limited, Andrew Okai, praised the partnership with IFC as a significant one.
‘Our strategic purpose is clear – we want to improve lives across the communities where we operate’, he said.
‘Increasing access to simple and appropriate financial solutions, for more individuals and small business owners, will enable us to deliver on this promise.
‘By partnering with global institutions like IFC, who share our vision of achieving social impact through sustainable commercial strategies, we can unlock exponential value and potential for us to do more’.
IFC plans to expand its partnership on affordable housing finance to other countries.
Photo source: Michael Paskevicius