Property development company, Ongos Valley has secured a provisional building society license from the Bank of Namibia (BoN).
The license, granted on February 10, 2023, will allow Cadence Building Society, owned by Ongos Valley Development (Pty) Ltd, to raise funds through the sale of shares, public deposits, or member subscriptions to build, buy, and improve homes.
According to the Director for Communication and International Relations at the Bank of Namibia, Kazembire Zemburuka, “The public is hereby notified that the provisional registration allows Cadence Building Society to organise itself before it commences business as a building society. During the period of provisional registration Cadence Building Society may not conduct business with members of the public until it has met the requirements for full registration.”
The provisional registration is valid for one year, after which the central bank may issue a certificate of registration to Cadence Building Society to conduct business provided that it satisfies the conditions of the provisional registration.
The central bank has been engaging in a consultative exercise to gather comments and recommendations on the Act, which provides for the registration and supervision of building societies.
Namibia currently does not have an active building society, despite the country’s housing backlog. Ongos Valley, which is developing a mixed-use township located 14 kilometers away from the city center, plans to build a total of 28,000 housing units in 20 years.
As a building society, Cadence Building Society may provide mortgage products as well as similar products to any other deposit taking institution. This move is expected to provide additional options for Namibians seeking housing finance.
