Pan-African Finance Group Letshego has launched a low-cost housing scheme for Namibia and Botswana with plans to roll it out to other African countries.
The “Affordable Housing” scheme comes barely two weeks after Letshego Namibia struck a financing deal with Ongos Valley for low-cost houses. In September last year, the Botswana-based bank which has interests in 11 African countries received a US$50 million loan from the International Finance Corporation for constructing up to 4 000 affordable houses in Namibia.
“Transforming housing finance into a more diversely affordable and accessible solution is not as simple as offering a home loan with lowered interest rates. It is about understanding the demographics and unique needs of our local communities, and then creating a solution that includes a multi-faceted structure that offers a choice in approach and structure to suit our customer’s unique affordability criteria,” said Letshego Namibia’s Chief Executive Officer Ester Kali.
“Solution enhancements include choices in asset finance – be it land purchase financing, home construction or home renovation. There is also the development of effective credit evaluation structures that increase access to capital for more consumers while still maintaining requirements in effective risk management so we may continue lending for many generations ahead,” she added.
Letshego indicated that its inclusive Affordable Housing solution aims to mitigate access challenges experienced by individuals in broader communities by offering a choice in products.
“In many of our regional markets, owning your own home is unfortunately still a luxury. Ironically, there are still many individuals and families across our communities who cannot access financial support to purchase or upgrade their homes – despite them being able to afford loan installments,” said the Group’s Chief Executive Officer Aupa Monyatsi.
The Pan African group has also established partnerships with local and international industry-related organisations and suppliers to expand the value of its Affordable Housing offering.
“The scheme comes after the realisation that citizens across Africa struggle to access housing for several reasons, including lack of affordability, stringent qualifying credit criteria, restrictions in the location of houses available for financing, as well as rapidly escalating house prices.
“These include an all-in-one solution with land and a customisable house, or capital to purchase material from local suppliers to renovate existing homes or properties. Home improvement finance options include additional benefits such as competitive pricing for labour, construction advisory support and quality building materials accessed via a dedicated network of established and accredited engineering and construction experts,” the company said.
