Just the other fortnight, I had an intriguing conversation with a mate on how Industries are becoming quite flexible to incorporating sustainable practices and policies in absence of clear National Policies on Sustainability.
Most organizations are adapting a reverse mode of operation where sustainability is harnessed on a micro level, in total isolation from the bigger context, a reform of National Policies and laws.
The Namibia National Housing Policy ( NNHP) 2023 launched by the Ministry of Urban and Rural Development in July 2024 is an impeccable example of how ESG should be the center of focus in all policies moving forward in order to collectively solve social and economic pressing matters which affect Namibians. The Policy duly crafted by Industry experts in the Housing Delivery supply chain is an impressive stance of where we are and what needs to be done to supply the housing backlog while incorporating socio-economic factors.
Due to the complexity of land and house delivery, it is almost impossible to follow through the process without harnessing sustainable practices. Traditionally when we think of sustainability in the housing sector one would assume that the use of eco-friendly building material is the sole variable responsible for coating the process with the term sustainability.
However, in these recent times the ordeal has evolved to provide an improvement to this notion. Building materials are no longer the only variable that can drive the construction of a house in the sustainable matrix. The amount of N$ 350 000.00 which is estimated as the cost of a standard Credit-Linked house in the Housing Subsidy Framework should be dissected into cost-effective components to ensure that each components gives value for money and is well integrated within the ESG matrix.
The construction cost of a house is a footprint in the economy, a means of employment creation, an establishment of a community, an opportunity of financial innovation and in contrast a house sale is an opportunity in improving livelihoods.
The NNHP outlines the roles of each player in the land and house delivery procedure, from the mighty policy makers, right through to Investor and even those who facilitate legal aspects of the property supply chain. Furthermore, the colossal finance fraternity is also assigned with a few mammoth responsibilities that will urge them to foster social aspects in the banking Industry.
Flexibility is encouraged in a way that does not necessarily expose bank operations to defaulting risk but provokes banks to cater for the ultra-low communities through unconventional products, products which enhance home financing methods for the less affluent market.
Fund Managers should overhaul their systems and incorporate Special Purpose Vehicle’s to cater for the ultra-low to low groups, while exploring ways on how to convert the bottom of the pyramid into a profitable market while protecting the socioeconomic interests.
Additionally, Government could exempt firms who implore innovative solutions on housing delivery from some tax obligations, whereas, large- scale employers are urged to devise housing strategies which will benefit their employees, this can be achieved through various special programs. This is a common practice in the mining Industry and humanizes such a stiff Industry.
The policy alludes that housing assists the attainment of national and global sustainable development. This should serve as an opportunity for government actors in the housing supply chain to collectively integrate relevant information pertaining to the housing sector. In this way bureaucracy will be molded within the digital space, enabling systems to integrate and improve information access for faster transactions ultimately. Through this even Estate Agents can position themselves efficiently.
Local Authorities are directed by the NNHP to initiate Infrastructure Systems such as E-PLAN, which will digitalize the building plan approval processes and assist in streamlining other administration processes. This is an opportunity for the private sector to take the government’s hand and waltz them through the latest digital trends pertaining housing and land delivery, improving efficiency instantly.
The NNHP is well authored to include strategies which contains clear action plans for each stakeholder involved in the process. The foundation of the Policy in my opinion is the involvement of private and international investments in the provision of housing. This immediately encourages dialogue across the sector and inspires investment in the housing Sector. The private Sector is rich with technical capacity and should be open to providing the low income earners special housing products which promote innovation. All this sounds exciting but is subject to a complete reform of building laws and standards with the intention to localize our building standards and practices.
Another stimulating proposal is a levy on building material which has been explored on a feasibility studies level. The Levy will essentially operate like a fuel levy and has the potential to generate a decent income for government to invest back into land and housing delivery. Another scheme to be investigated is the reduction of import taxes on building materials, which removes the financial burden from suppliers, decreasing end-user cost.
Elizabeth Dole once said that the best public policy is made when you are listening to people who will be impacted and this is exactly the approach that led to the policy. The test of time and grit will determine the outcomes and the workability of the policy in housing Namibians.
*Ndatyoonawa Tshilunga- Nelumbu is a Construction Economist with plus 8 years in the affordable housing Sector. She is a Project Executor with interests in Infrastructure Development and Investment Management. She is also an author who gravitates to topics of emotional intelligence and economic social affairs. tshilungaonime@icloud.com / + 264 81 2657979
