The Government of Namibia has approved the launch of a Pension-Backed Home Loan (PBHL) scheme aimed at improving access to affordable housing for civil servants.
The scheme will enable members of the Government Institutions Pension Fund (GIPF) to use part of their pension savings as collateral for home loans.
Finance Minister Ericah Shafudah announced the approval in Parliament , noting that the scheme is the result of a joint effort by the Ministry of Finance, the Namibia Financial Institutions Supervisory Authority (NAMFISA), and the Government Institutions Pension Fund, with support from the Office of the Prime Minister.
“I stand before this August House to brief Honourable Members that Government, through the Ministry of Finance and in collaboration with NAMFISA and the Government Institutions Pension Fund, has endorsed and is implementing the Pension-Backed Home Loan scheme. This process is underwritten by the Office of the Prime Minister,” she said.
The facility is available to eligible GIPF members in both proclaimed and unproclaimed areas, and may be used to purchase residential land or property, build or renovate homes, settle existing mortgages, or improve basic living conditions.
Shafudah explained that the scheme is made possible by amendments to the Pension Funds Act 24 of 1956, which now permits pension funds to issue housing-related loans.
The interest rate will be set at the Bank of Namibia’s repo rate plus 2.5%, in a bid to maintain affordability.
“We recognise the right to shelter as a fundamental human right. The implementation of this scheme marks a step forward in tackling housing inequality and empowering public servants to own homes and live with dignity,” she said.
She added that final administrative arrangements with the Government Institutions Pension Fund and government payroll systems are under way, with further details regarding eligibility and the application process to be communicated to civil servants through their respective ministries and the GIPF.
