Thumps up for GIPF pension-backed housing plan

The Public Service Union of Namibia and the Shack Dwellers Federation have welcomed the Government Institutions Pension Fund’s plan to allow civil servants to purchase homes using their pension funds.

The union’s deputy secretary Ujama Kaahangoro said they have made these recommendations to the Government Institutions Pension Fund (GIPF) considering the low housing allowances public servants get and the cumbersome process of acquiring home loans from banks.

This comes after GIPF chief executive officer David Nuyoma made a farewell courtesy call on president Hage Geingob at State House on Monday.

“Since this is their own money, they can now make arrangements to acquire properties through easy and affordable means,” Kaahangoro said.

Namibia is currently sitting on a 300 000-unit housing backlog.

The urban and rural development ministry has so far failed to meet the target to deliver 5 000 homes annually.

Kaahangoro highlighted the union’s concern regarding the impact of the current economic climate on civil servants, stressing the vital role of housing.

He also emphasised the need to enhance collective bargaining and adopt a comprehensive approach to address various areas that require improvement, such as housing.

“There is nothing wrong with an employee taking a portion of their hard-earned savings to acquire a home. What we need to do is to formalise this,” Kaahangoro said.

Shack Dwellers Federation national facilitator Edith Mbanga said while it is a good move, GIPF should consult and engage its members about the scheme so they understand what agreement they are entering into better.

The federation’s financial coordinator, Othilie Nailulu, said the scheme can address the housing backlog faced in the country and agreed with Mbanga that GIPF needs to engage with members first.

“Sometimes the information is not [getting] to the end-users. Not everyone has access to the correct information and information might get confusing from person to person,” she said.

Nuyoma highlighted the pressing need for affordable housing within the civil service sector, stating that currently only around 30% of civil servants own homes.

The proposed scheme will allow GIPF members to use their pensions as collateral, making home ownership more accessible and attainable for government employees.

During the meeting with the president, Nuyoma gave insights into the scheme’s progress and revealed that the GIPF has successfully devised an operational framework for its implementation.

He said all that remains is the formal signing of an official agreement with the government.

“It (the scheme) will be for members to use their pension credit to create their own dwellings and even expand on existing dwellings. It is an unlimited fund, which will be based on the credit of individual members,” Nuyoma said.

Nuyoma, whose term as chief executive officer ends next month, is optimistic about finalising the agreement with the government before his contract expires.

“We are at an advanced stage of that process. Hopefully in the next few weeks, we will be able to put that down on paper,” Nuyoma said.

The scheme will allow members to acquire and/or renovate homes in both proclaimed and unproclaimed areas.

Affirmative Repositioning lead activist Job Amupanda has also commended the GIPF-led initiative.

“As he goes into retirement, his last action will be to sign off what we have been fighting for you, on your behalf. Before he retires, you, as government employees, will now be allowed to use part of your pension to buy your house now and renovate your house – even in deep villages,” he said.