The First National Bank of Namibia (FNB) says it has invested N$5 million into the Development Workshop of Namibia’s project to manage and service land.
The project, funded through the FirstRand Foundation, will see the Development Workshop of Namibia partner with local authorities in order to reduce the costs that contribute to the high price of plots in the country.
“How it works is through partnering with local authorities, which provide the land for housing to be developed in any town. Development Workshop of Namibia services the land on behalf of the local authority, and a price per plot is then established,” Group Corporate Social Investment Manager, Revonia Job said.
Job further explained that once a price per plot is determined, clients who are on a council’s waiting list for housing register for a plot under the scheme and subsequently have 12 to 24 months to pay off their plots and receive a title deed.
The money is held in a joint account held by the Development Workshop of Namibia and the local authority and is used to pay professional and service fees. Once complete, clients must then begin to build their homes within one year.
According to Job, the bank has also designed a special loan scheme for clients of the programme where they can receive unsecured loans of up to N$50,000 at a fixed interest rate of 10.33% with a repayment period of one to five years.
“Once a client has repaid 30% of the loan, she or he can apply for an extra loan until the house is finished. This scheme thus supports incremental home construction, where people can build their houses at their own pace,” Job explained.
The scheme is currently operational in 14 towns namely Oshakati, Karibib, Okahao, Oniipa, Keetmanshoop, Opuwo and Okakarara, Stampriet, Otjiwarongo as well as Eenhana, Rundu, Rehoboth, Gibeon and Lüderitz while developing 24 extensions and servicing 6,000 plots.
