In a bold move to address the country’s housing shortage and empower civil servants, the Namibian government has officially launched the Pension-Backed Home Loan (PBHL) scheme, a transformative initiative designed to help public servants access affordable housing. The announcement was made by Ericah Shafudah, Minister of Finance, during a ministerial statement delivered to the National Assembly on June 25, 2025.
The PBHL scheme, a collaborative effort between the Ministry of Finance, the Namibia Financial Institutions Supervisory Authority (NAMFISA), and the Government Institutions Pension Fund (GIPF), allows civil servants to use a portion of their accumulated pension savings as collateral for home loans. This groundbreaking initiative is underwritten by the Office of the Prime Minister and marks a significant step in the government’s commitment to improving access to decent and affordable housing, particularly for those who struggle to meet conventional bank loan requirements.
Minister Shafudah emphasized that the scheme is rooted in the recognition of shelter as a fundamental human right. “This initiative is part of our broader commitment to tackle housing inequality and empower public servants to own homes and live with dignity,” she stated. The PBHL scheme is available to GIPF members in both proclaimed and unproclaimed areas, offering flexibility for a wide range of housing needs. Eligible participants can use the loans to purchase residential property or land, construct or renovate dwellings, settle existing home loans, or improve basic housing conditions.
The legal foundation for the scheme is provided by the Pension Funds Act 24 of 1956, as amended, which permits pension funds to extend housing loans to their members. To ensure seamless implementation, the government is finalizing administrative arrangements with GIPF and payroll systems. Civil servants will soon receive detailed communication from GIPF and their respective ministries outlining eligibility criteria, terms, and the application process.
One of the most notable features of the PBHL scheme is its affordability. The government has set the loan pricing at the Bank of Namibia’s Repurchase Rate (Repo Rate) plus 2.5 percent, a strategic decision aimed at making homeownership accessible to low- and middle-income earners. This competitive rate is expected to significantly reduce the financial burden on civil servants, many of whom have long struggled to secure housing finance through traditional channels.
Minister Shafudah highlighted the broader societal impact of the initiative, noting that homeownership is a key driver of economic stability and social well-being. “Together, we are building a better Namibia—one home at a time,” she declared. The scheme is also expected to stimulate the construction and real estate sectors, creating jobs and fostering economic growth.
The announcement has been met with widespread optimism, particularly among civil servants who have long faced barriers to homeownership. By leveraging pension savings as collateral, the PBHL scheme bypasses many of the stringent requirements imposed by commercial banks, offering a lifeline to those who have been excluded from the housing market.
However, the Minister also issued a word of caution, urging beneficiaries to exercise responsible borrowing and financial planning. “While this scheme opens doors, it is essential that borrowers manage their loans prudently to avoid future financial strain,” she advised. The government, in collaboration with NAMFISA and GIPF, will provide financial literacy support to ensure participants make informed decisions.
The PBHL scheme is the latest in a series of government efforts to address Namibia’s housing crisis, which has been exacerbated by rapid urbanization and limited affordable housing stock. By tapping into pension funds, the initiative represents an innovative solution to a persistent challenge, aligning with global best practices where pension-backed housing schemes have proven successful in other countries.
As the government moves forward with the rollout, stakeholders are optimistic that the PBHL scheme will not only transform the lives of civil servants but also contribute to broader national development goals. With its focus on affordability, inclusivity, and sustainability, the initiative is poised to make homeownership a reality for thousands of Namibians who have long been sidelined in the housing market.
In closing, Minister Shafudah thanked all stakeholders for their collaboration and reiterated the government’s unwavering commitment to improving living standards for all citizens. “This is more than a housing scheme—it is a testament to our collective resolve to build a more equitable and prosperous Namibia,” she said.
The PBHL scheme is set to officially commence in the coming months, with GIPF expected to release further details shortly. For many civil servants, the wait for a place to call home may finally be over.