Development Bank unveils 324 residential erven in Otjiwarongo – CEO highlights benefits of affordable housing
At a recent unveiling of 324 residential erven, in Otjiwarongo, Development Bank of Namibia CEO, Martin Inkumbi, highlighted the macro-economic benefits that support the case for acceleration of delivery of serviced land and affordable housing.
Inkumbi said owning a house and building an asset base is empowering to families, as they get the opportunity to lock into a property as opposed to being exposed to ever increasing rentals.
“Equally important are development and economic impacts stemming from income gains to owners of affordable housing. By shifting a portion of income away from monthly rental payments or bond repayments, income which has a beneficial effect is released into circulation in the economy,” Inkumbi said.
Inkumbi sketched out a dispersal effect in which a spread of income sources would enhance diversity of the economy. He illustrated this by saying the owner of a single, costly unit might use disposable income on an expensive vehicle supporting revenue and jobs in one outlet, but multiple beneficiaries of affordable income would have different needs and support multiple, different enterprises to support their needs.
“The dispersal effect would not only support multiple enterprises but could also have a significant geographic impact, as the need for affordable housing crosses all of Namibia’s regions,” he added.
Inkumbi invited developers, particularly those with a focus on low income houses and the rent-to-buy market, to approach the Bank and find out how to apply for finance or find out how to structure proposals with a view to initiating projects.
“The Bank, he said has a strong track record in the field, with N$796 million approved for affordable housing projects and N$580 million approved for land servicing,” Inkumbi stated.
Caption: FLTR: GIPF GM: Investments Conville Britz, DBN CEO Martin Inkumbi and DBN Senior Portfolio Manager, Helen Amupolo.