Since last year, the International Finance Corporation (IFC) has partnered with pan-African financial organization Letshego Bank Namibia (LBN) to increase access to affordable housing finance for thousands of people in Namibia.
LBN’s national chief executive, Ester Kali, said the initiative started in December last year and public interest, especially from state-owned companies, has been overwhelming so far.
IFC’s $30 million financing facility will expand access to affordable housing finance to more than 4,000 Namibians. Although 78% of Namibians have a bank account, only 12% of households have mortgage-financed homes. Kali said the majority of Namibians are not eligible for mortgages from commercial banks because the properties sought are often unaffordable.
LBN has already successfully registered two bonds with the Windhoek Deeds Office and the Ministry of Land Reform on December 7, 2021. Applications can be made at any local branch, from where the valuation process begins.
“Our strategic objective is clear: we want to improve the lives of the communities in which we operate. Increasing access to simple and appropriate financial solutions for more people will allow us to fulfill this promise. By partnering with institutions organizations such as the IFC, who share our vision of achieving social impacts through sustainable business strategies, we can unlock exponential value and potential for us to do more,” she said.
Kali added, “This is truly an exciting partnership, and indeed the year of reimagining where we shift gears in delivering our products and services to you, our valued customer.”