Prime Minister Elijah Ngurare has called for urgent reforms to Namibia’s housing finance system, arguing that current lending models are making homeownership increasingly unaffordable for many young Namibians.
Ngurare expressed concern over the widening gap between property prices and the ability of ordinary citizens to purchase homes.
He questioned why vehicles worth millions of dollars can be financed over relatively short periods, while houses of similar or lower value often require repayment periods of up to 20 years.
The Prime Minister said many young professionals struggle to understand the rationale behind the current financing structure.
“I am speaking from a generation that you all know very well, the young professionals out there who are saying it does not mathematically add up. A car costing N$2 million can be paid off in five or six years, but a house valued at N$800,000 can take 20 years to repay. No matter the English we use, it is very difficult to convince those who are saying it is not fair,” he said.
Ngurare directed his remarks to Bank of Namibia Governor Ebson Uanguta, recalling recent discussions between the two on the issue and stressing the need for further engagement with commercial banks.
He praised the governor’s role in maintaining macroeconomic stability but said discussions on housing affordability must continue.
“My appreciation also goes to the Governor of the Bank of Namibia, whose economic stewardship provides the macroeconomic foundation upon which our physical plans must be built. Our conversation is not complete yet. We must still meet with the CEOs of commercial banks and discuss the time it takes for houses to be paid compared to the time it takes for cars to be paid,” he said.
The Prime Minister urged the Bank of Namibia, commercial banks and other financial institutions to review existing housing finance models and identify mechanisms that could make homeownership more affordable and accessible, particularly for first-time buyers and young people entering the property market.
Finance Minister Ericah Shafudah welcomed the proposal and called for collaboration between the Bank of Namibia, the Ministry of Finance, the Office of the Prime Minister and commercial banks to explore potential reforms.
Ngurare also highlighted government’s broader commitment to addressing housing and sanitation challenges, describing both as urgent national priorities.
He revealed that President Netumbo Nandi-Ndaitwah had recently held discussions on the country’s housing shortage and sanitation challenges, with the issues also receiving attention from disaster risk management structures.
“The President recently had a conversation on the lack of housing and sanitation as an emergency. Government is very serious about housing and very serious about sanitation, and will come through with that,” he said.
According to the Bank of Namibia, around 70% of Namibians can no longer afford formal housing, as soaring property prices, weak income growth and limited access to mortgage finance continue to place homeownership beyond the reach of most households.
