N$3 billion needed to address housing backlog

A recently released report by the National Council standing committee on transport, infrastructure and housing has indicated that the government needs to fork out N$3 billion to address the housing backlog.

Since its establishment in 1991 the National Housing Enterprise has successfully constructed approximately 14 884 houses nationwide through its own projects and the Mass Housing Development Programme.

Namibia’s housing backlog is estimated to be between 300 000 and 700 000 units.

This is according to the National Housing Policy (Second Revision, 2023) which serves as the principal framework guiding all stakeholders in the housing sector.

It outlines strategies and objectives to address Namibia’s housing backlog.

The report was tabled last week in the National Council by committee chairperson Alfeus Abraham.

“The government needs to increase funding allocations to local authorities and regional councils to effectively meet the national housing demand and reduce the existing backlog. The current allocation of N$1 billion is insufficient compared to the estimated requirement of N$3 billion,” said Abraham.

The committee conducted oversights on a motion tabled in 2023 of the urban poor and landless citizens in the Erongo, Kunene, Omusati, Oshana, Oshikoto, Ohangwena, Kavango East, Kavango West and Zambezi regions from 6 to 23 August 2024.

The motion seeks to investigate the extent to which housing policies and programmers of local authorities promote affordable land delivery in Namibia.

Abraham said a total of 25 local authorities and seven regional councils attended the consultations.

However, one local authority, the Karibib Town Council, and one regional council, the Oshana Regional Council, were absent. In total, 155 participants attended the oversight meetings.

According to the committee’s findings, there is an urgent need to reform the existing legal and regulatory frameworks to address identified challenges particularly by revising the compensation policy for communal land and amending both the Local Authorities Act and the Regional Councils Act.

To make serviced land more affordable, Abraham said the government should explore alternative financing mechanisms and consider state-supported services for land servicing.

“This will reduce local authorities’ dependency on land sales as a revenue source and improve access to land for low-income earners,” he said.

The report found that most local authorities have adopted plans and programmes aimed at ensuring that all Namibians have access to quality, affordable and dignified housing, irrespective of their income level or employment status.

This comes through initiatives that empower households by creating job and business opportunities, alongside the diversification of land and housing delivery mechanisms.

However, the high cost of land and insufficient funding for land servicing remain critical obstacles.

Local authorities also cite the lengthy and cumbersome town planning process and the minimum erf size restriction of 300 square metres as additional barriers.

The report says the challenge in meeting land servicing targets arises when localities must develop new townships.

For instance, a township may require N$100 million to service, while the government provides only N$8 million, leaving a substantial funding gap that the local authority must bridge.

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