The Government Institutions Pension Fund (GIPF) plans to leverage its subsidiary Kuleni Financial Services and housing loan fund manager First Capital Treasury Solutions to facilitate the upcoming pension-backed housing loan scheme.
The pension fund revealed its plans are advanced, with the Memorandum of Agreement (MoA) already prepared and currently under review by the Office of the Prime Minister (OPM).
The pension-backed home loans initiative by the GIPF aims to provide its members with an accessible path to home ownership, leveraging their pension savings as security for loans.
“Since the approval of the Pension Backed Home Loan (PBHL) scheme by the GIPF Board of Trustees, the Fund has been engaged with relevant stakeholders to finalise the signing of the MoA between the relevant parties consisting of the GIPF, Government through the OPM, Treasury, Attorney General, Public Service Commission, other participating employers and appointed PBHL Administrators,” GIPF Principal and CEO, Martin Inkumbi told The Brief.
Inkumbi added that for the benefit to be added to the GRN Home Owners Housing Scheme for Staff (HOHSS) and be eligible, the GRN through the Ministry of Finance and Public Enterprises has approved a direct deduction code.
Kuleni Financial Services was established in 1999 by the GIPF to provide retirement solutions and other related services in the open market.
This comes as the market value of the GIPF’s investments in the local economy has reached N$5.9 billion, up from N$5.3 billion in 2022, according to Principal Inkumbi.
“This growth is mainly through our unlisted investment programme over the last 10 years,” Inkumbi said.
These investments span various sectors, including property, venture capital, private equity, private debt, SMEs, renewable energy, infrastructure, and affordable housing.
“The Fund has added value to the socio-economic development in Namibia through our investments in affordable housing and land services projects,” Inkumbi stated.
He emphasised that GIPF recognised Namibia’s housing shortage early on and saw an opportunity to make a meaningful impact on the housing landscape while delivering on investment returns. “Our investments in housing also meet the requirements around income generation and capital growth,” Inkumbi noted.
Since the approval of the Unlisted Investment Policy in 2010, GIPF has focused on housing projects aligned with the Harambee Prosperity Plan (HPP) goals.
“The HPP goal is to construct 20,000 new houses nationwide and service 26,000 new residential plots, to which GIPF has committed to take up at least 30% of this deliverable of the Plan,” he added.
He highlighted the fund’s positive impact on many government employees in the areas of land servicing, housing, and mortgage financing.
“GIPF takes its commitment to delivering services in land and housing seriously and has consistently demonstrated the ability to fulfil its pledge,” Inkumbi said.
As of 31 March 2023, GIPF’s investments include the servicing of 5,761 land plots, the construction of 6,919 housing units, financing for 2,890 houses through the First Capital Housing Fund, and the creation of 3,779 jobs.
GIPF is a statutory pension fund that provides guaranteed pension and related benefits to over 90,000 civil servants, and employees of participating employers in Namibia.
