Prime minister Elijah Ngurare has questioned Namibia’s housing finance model, arguing that lengthy repayment periods are making homeownership unaffordable for many young people.
He was speaking at the budget reform roll-out implementation planning workshop in Windhoek yesterday.
Ngurare said a vehicle worth N$2 million can usually be financed and paid off within five years, while a house of the same value or less often requires a repayment period of up to 20 years.
“No amount of good English will convince me as to why this is the case,” he said.
Ngurare said the high cost of housing remains a major concern, especially for young Namibians who aspire to own homes but are being priced out of the property market.
He urged Bank of Namibia governor Ebson Uanguta to engage commercial banks and other financial institutions to review existing housing finance models and identify ways to make homeownership more affordable and accessible.
Ngurare said reforms are needed to ensure more young Namibians can enter the housing market.
Meanwhile, finance minister Ericah Shafudah welcomed the directive and called the central bank, her ministry and the office of the prime minister to work with commercial banks to put the proposal into action.
