Prime Minister Elijah Ngurare has issued a stark warning to Namibia’s banking sector, calling for an end to what he described as harsh housing finance practices that leave families stripped of their homes after years of payments.
Speaking at the Bank of Namibia, Ngurare said the repossession of primary residences is not only financially damaging but socially destructive, particularly for households that default late into long-term mortgage agreements.
“People pay for houses for many years, sometimes up to 20 years, and then lose everything because of circumstances beyond their control,” he said.
He criticised a system that allows banks to repossess homes without adequately recognising the value already paid by homeowners, arguing that families are often left with nothing despite years of financial commitment.
Ngurare called for urgent reforms to prevent primary homes from being auctioned outright, or at the very least to ensure that affected households recover part of their investment.
“It cannot be that someone loses a house immediately because of technicalities in financing. There must be a fairer outcome,” he said.
He also pushed back against any perception that government engagement amounts to interference, saying the issue goes beyond finance and speaks to dignity and fairness.
“The person being repossessed is not different from any of us. It is often circumstances, not unwillingness, that lead to default,” he said.
The intervention comes amid mounting concern over repossessions in Namibia’s housing market. Nearly 15,000 homes were repossessed between 1990 and 2014, highlighting the long-standing nature of the problem.
Recent data shows banks put 277 properties up for auction due to defaults, with only 71 sold for a combined N$85.9 million.
In response to growing pressure, the judiciary has amended High Court rules governing the sale of primary residences. The changes aim to strengthen protections for homeowners while maintaining legal recourse for lenders.
The issue has also reached Parliament, where the Bankers Association of Namibia and the Namibia Competition Commission were recently called to account over concerns about bank charges and lending practices.
Ngurare’s remarks signal a tougher stance from government as it seeks to push financial institutions towards more balanced lending frameworks that protect both credit markets and households.
