Namibia: N$300m Housing Construction Funds Available

• Namibia's Ministry of Urban and Rural Development has N$300 million available for housing construction, to be distributed among 59 local authorities.
• The country faces a significant housing crisis, with 28.7% of households living in informal dwellings nationwide and 40% in urban areas.
• The Sixth National Development Plan aims to reduce informal settlement households to 16.7% and increase housing units to 55,126 by 2030.
• Key challenges include scarcity of serviced land, high construction costs, limited housing finance, and a mismatch between available housing and affordability.
• The Ministry plans to strengthen cooperation with the private sector and has allocated N$406.5 million for informal settlement upgrading in the 2026/27 budget.

The Ministry of Urban and Rural Development plans to accelerate informal settlement upgrading, serviced land delivery, and affordable housing, while strengthening cooperation with local authorities, the private sector, and housing organizations.

Namibia's Ministry of Urban and Rural Development (MOURD) has announced that approximately N$300 million remains available for housing construction across the nation. These funds are earmarked for distribution among 59 local authorities, at a time when the demand for both serviced land and housing continues to escalate. The deputy director of housing development at the Ministry, Kornelius Thaniseb, conveyed this information to the National Assembly standing committee on urban and rural development and land reform last Wednesday, highlighting the significant budget constraints that impede the government's capacity to effectively address the country's housing crisis.

Thaniseb underscored the severity of the financial limitations, stating, "Budget constraints remain an issue and I do not know how far we can go." He further noted that the availability of housing finance is restricted due to insufficient funds. The committee's recent oversight visits to informal settlements in the Kavango East, Kavango West, Zambezi, and Otjozondjupa regions provided firsthand insight into the challenges. Thaniseb identified the proliferation of informal settlements as a key technical hurdle for the Ministry, suggesting that proactive planning could offer a viable solution. Currently, research is underway to evaluate the housing market and pinpoint affordable construction methods before new projects commence.

The urgent need for housing in Namibia is exacerbated by rapid urbanization, with the 2023 Census indicating that roughly 50% of the population now resides in urban areas. This demographic shift contributes significantly to the Namibia housing crisis challenges. A presentation by the Ministry of Urban and Rural Development Namibia revealed that 28.7% of all households live in informal dwellings or shacks, a figure that climbs to 40% among urban households.

Several major obstacles hinder progress in addressing this widespread issue. The Ministry has identified a scarcity of serviced land, prohibitively high construction costs, and limited housing finance as critical impediments. Furthermore, there is a significant mismatch between the types of housing products available on the market and what low- and middle-income households can realistically afford, deepening the housing affordability gap.

In response to the escalating crisis, Namibia's Sixth National Development Plan (NDP) sets ambitious housing targets Namibia. The plan aims to reduce the proportion of households living in informal settlements to 16.7% by 2030. Concurrently, it seeks to increase the number of serviced plots from 25,111 to 50,000 and dramatically raise the number of houses constructed from 12,598 in 2024 to 55,126 by 2030. These national goals align with the Sustainable Development Goals, which target approximately 21,000 houses by 2030, though this target has faced delays due to funding shortages.

The 2026/27 budget reflects a commitment to these objectives, allocating N$406.5 million to the informal settlement upgrading affordable housing programme. Additionally, N$20 million each has been designated for the Build Together programme Namibia and the Shack Dwellers Federation of Namibia. The Ministry of Urban and Rural Development Namibia is actively planning to accelerate Namibia informal settlement upgrading, improve serviced land delivery, and expand affordable housing options. A key component of this strategy involves strengthening cooperation with local authorities, the private sector, and various housing organizations.

The Ministry's intent to strengthen cooperation with the private sector signals potential opportunities for new tenders or partnerships in affordable housing and informal settlement upgrading. This collaborative approach is seen as crucial for leveraging additional resources and expertise to overcome the persistent challenges. Critics have previously suggested that local authorities should explore alternative revenue streams to alleviate the financial burden on the Ministry and actively seek partnerships with other housing organizations or external funding sources.

By fostering stronger ties with non-governmental entities and private developers, the Ministry hopes to enhance its capacity to meet the ambitious targets set by the National Development Plan and the Sustainable Development Goals. The ongoing research into the housing market and affordable construction methods is also expected to inform more efficient and cost-effective project implementation, ultimately contributing to a more sustainable solution for Namibia's housing shortage.

Lawyers in real estate, construction, or public procurement in Namibia should note the N$300m available for housing projects and the Ministry's stated intent to strengthen cooperation with the private sector, signaling potential opportunities for new tenders or partnerships in affordable housing and informal settlement upgrading.

Source: Original reporting via The Namibian