It has been a resilient past seven years for National Housing Enterprise (NHE), but Board Chairperson Toska Sem has revealed the Enterprise’s ambitious plan to bridge the Namibian housing gap by delivering 1500 houses each year.
This plan, which would signify a new birth, anchors the enterprises’ 2024–2029 Integrated Strategic Business Plan (ISBP), which has been crafted premised on business growth, operational excellence, and customer Centricity and will serve as NHE’s blueprint for operations during the next five years.
“The ISBP will help NHE increase its annual housing output to 1500, taking into account current efforts to acquire affordable funding from private financiers.” The Enterprise has also intensified stakeholder engagements with key players in the housing fraternity, such as local authorities, to secure affordable serviced land. The Board will continue to diligently execute its role of providing the required strategic leadership and enabling environment for the Enterprise to operate successfully and deliver on its mandate efficiently,” Sem says in the Enterprises’ Annual Report covering 7 years between 2017 and 2023.
While the NHE was established to provide finance and to provide affordable housing for inhabitants of Namibia, the plan to deliver 1500 houses per year is feasible yet, at the same time, will not be something easy to achieve. This is moreso due to the reason that NHE managed to successfully deliver 1056 units across the country between 2017 and 2023, against a target of 5000, at the backdrop of operational challenges that the Enterprise says it is now ready to address.
These are mainly related to limited funding for capital projects and the unavailability of affordable serviced land in urban areas.
From 2017 to 2023, the NHE’s financial trajectory has also reflected a complex interplay of factors affecting loan approvals and disbursements, with a renewed focus on sustainable urban development and community housing solutions.
During the fiscal years 2017 to 2020, NHE experienced its highest revenue in 2018, earning N$473 million, primarily driven by the sale of houses under the Mass Housing Development Programme (MHDP). However, project delays and broader economic conditions have contributed to fluctuations in performance. In FY 2017, NHE proactively approved loans totalling N$115.4 million, with a significant portion dedicated to the MHDP. Despite a decline in rental revenue from N$2.9 million in 2017 to N$1.7 million, the NHE’s commitment to providing quality housing remained steadfast.
CEO Gisbertus Mukulu emphasised the organisation’s comprehensive approach to property management, highlighting the active engagement in property valuations, upgrading loan assessments, and effective management of rental properties. The strategic acquisition of 1,097 plots across various towns underscores NHE’s dedication to inclusivity and sustainable urban development.
The financial landscape shifted markedly in 2018, with total approved loans soaring to N$359.3 million, largely due to a 340% increase in MHDP loans. However, this growth was tempered by a 33% decrease in approved loans in FY 2019, attributed to fewer projects and an economic downturn. Despite these challenges, the disbursement of loans surged, showcasing the effective utilisation of approved funds.
Over the past seven years, NHE has faced rising non-performing loans and an increasing impairment ratio, exacerbated by the uncertain economic environment. The loan book expanded significantly, growing by 91% from N$553 million in 2017 to N$1.059 billion in 2023, with the MHDP constituting 51% of this total. However, challenges in rolling out capital projects due to funding constraints and access to serviced land have hindered revenue growth.
The recent economic landscape, influenced by interest rate cuts from the Bank of Namibia and the impact of COVID-19, has further complicated NHE’s operations. In response, the organisation provided clients with payment holidays to alleviate financial pressure.
As NHE looks to the future, its multifaceted strategy aims to address the growing demands for housing and urban development in Namibia. With a renewed focus on effective project execution and community engagement, NHE is set to play a pivotal role in shaping the housing landscape, ensuring that quality housing remains accessible to all Namibians.
The path forward for NHE is not without its challenges, but with strategic planning and commitment to sustainable development, the organisation is determined to turn its operations around and fulfil its mission of providing affordable housing solutions for the nation.