Housing Pre-Finance Loans: Various Locations - BlouwesBack To Projects
This project pre-financed the construction of one hundred and twenty-one (121) houses across six urban areas in Namibia. Funds are to be reimbursed by the government at a later stage. All one hundred and twenty-one (121) houses have been completed. The area of each house is 34m2.Location: Blouwes, Namibia
All one hundred and twenty-one (121) house have been constructed by the seven (7) savings groups, one of which is in Blouwes, who received financial support. The groups in Kalkfeld have installed services to the twenty-three (23) houses that they constructed. This was undertaken in order to meet the government housing requirements. An application has been made through the Regional Council,to provide electricity to all the houses that have been built. The installations are in their final stages.Community capacity:
Construction of the houses is managed by the groups themselves. Most of the members produce their own bricks to construct the houses and also do their own excavations. Financial assistance to help fund construction has been obtained through the Build Together Program. Group members will build their capacity to manage loan repayments and organize regular reporting sessions on their progress. Regional networks will support these loan activities through exchanges.Scale:
Currently plans are in place to scale up the project to construct one thousand (1,000) houses per year. This can only be realised once money has been secured from the State. The scaling up plans were presented to the National Planning Commission during the National Development Plan 4 (NDP4) preparation.Impact:
Communities have demonstrated the capacity to deliver housing projects to scale by managing their own projects. This project will assist with the scaling up of housing projects, which in turn will help with negotiations for a funding increase from the State.Finance: SDI Contributions:
SDI's capital contribution to the project is US$124,000. An additional US$13,500 was provided for technical assistance.The total project contribution was US$137,500.Resources Leveraged:
In Luderitz, Karas the key stakeholders participated in a brick making event for twenty (20) houses. This event also involves the Minister of Regional and Local Government, Housing and Rural Development (RLGHRD). The event was organised by SDFN/NHAG, MRLGHRD, Luderitz Town Council, Karas Regional Council and Pupkewitz Megabuild. As a result of the event, the Luderitz Town Council provides building sand to groups at no cost and mobilization of communities has intensified with Council support. Omaruru municipality provided sand for half of the standard price. The Namibia Housing Action Group (NHAG) supported groups building houses by facilitating negotiations for reduction of prices on building materials when purchased in bulk purchases. Cement was bought directly from the manufacture which further cut costs down.State Subsidy:
The State subsidy came in the form of reduced, and in some cases no cost, of sand.Market Generated Returns:
None to date.Costs recovered from community:
Recovered funds will revolve and be allocated to the further construction of eleven (11) new houses per year. In the case of the Build Together Program approvals, all the money will be recovered and a further 120 houses will be constructed.
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Project information updated: 19 January 2016
Project in depth
The groups' contributed five percent (5%) of their savings as an upfront payment. All beneficiaries are members of savings groups and participate in regional and local networks of the Federation. Meetings took place with the staff from the MRLGHRD to request Build Together Funds for the project and a budget was submitted. Plans were presented to the National Planning Committee and negotiations are underway with the newly formed Technical committee of the Minister to secure additional funds so that the project can be scaled up.
Communities are demonstrating that they can produce houses to scale by managing projects by themselves. The project assists in the scaling up of housing production which will help negotiations with the state to increase funding. Once the funds are secured from the State it is planned that the scaling up of this work will reach a one thousand (1,000) houses per year. Activities with other stakeholders include the brick making event in Luderitz, Karas involving the Minister of RLGHRD. The event was organized by the Alliance, MRLGHRD, Luderitz Town Council, Karas Regional Council and Pupkewitz Megabuild. Bricks were made for twenty (20) houses. This event was the catalyst for the Town Council of Luderitz to provide building sand to the groups at no cost.
The construction of one hundred and twenty-one (121) houses by Federation groups in six (6) urban areas of Namibia. These are: Luderitz, Kalkfeld, Omaruru, Rehoboth, Blouwes and Katima Mulilo.Community capacity:
Construction capacities and skills development occurred through exchanges. Financial management skills through the assessment and repayment of loans.Scale:
The intention is to scale the project up to 1,000 houses per year. This will occur once the necessary funds have been secured from the State. These plans for scaling up have been presented to the National Planning Commission (NPC) during the National Development Plan 4 (NDP4) preparation sessions.Impact:
The project has the potential to iincrease resources from National Government for the scaling up of the housing delivery and to strengthen the Federation's position as a partner in the Governments plan for housing delivery.Finance: SDI Contributions:
SDI capital contribution for the project is US$124,000. An additional US$13,500 was provided for technical assistance.Resources Leveraged:
Project sustainability is gained through the set up of a revolving fund. When loans are repaid eleven (11) new houses are constructed per year. The Alliance is in the process of applying to the Build Together programme to recover money from the project. This money will be put into the revolving fund. Beneficiaries contributed 5% of their savings as an upfront payment and are continually saving to ensure loan repayment. Federations negotiated with local authorities to reduce costs of building materials such as building sand as well as with Pupkewitz Megabuild who provided cement directly, cutting out the mark-up added by suppliers.Market Generated Returns:
None to date.
Republic of Namibia. (2012). Namibia's Fourth National Development Plan (NDP4) 2012/13 - 2016/17. [Online]. Available: http://www.npc.gov.na/?wpfb_dl=37.
The Namibian. (2012). NDP4: Good Times and Good Life. [Online]. Available: http://www.namibian.com.na/indexx.php?archive_id=97901&page_type=archive_story_detail&page=810.