Pre-Finance for Housing Construction across NamibiaBack To Projects
This project pre-financed the construction of seventy-eight (78) houses for savings groups from different regions in Namibia. The Twahangana Fund, Namibia's Urban Poor Fund, bridged finance loans from the Government’s Build Together programme for housing. The fund recovery process decreased delays allowing faster construction of houses. Local authorities provided upfront funding for construction and Government tripled their annual donation to the Federation in 2010, which is an indication of strong political support. Throughout the project, the Federation has reported an increase in the community understanding of the revolving funds process. In Tsumeb, the Federation was able to return 50% of the bridging finance by December 2010 and delivered the rest in February 2011. A record number of households have accessed loans through this project.
At the national level the death of the Director of Housing set the process back somewhat. Build Together funds that had been pledged for the project are yet to be paid and nature of the relationship between Twahangana and the Build Together Fund is still to be addressed. The Federation also seeks to increase its ownership of the process. In response to these challenges, the increase of both Federation capacity and housing production has served as useful leveraging for the Federation when addressing this issue with Government. The individualization of the Built Together loans in the Local Authority accounting system has also resulted in lack of participation by community members with respect to management of their loans. Although this was addressed during meetings with the City of Windhoek, no conclusive results are forthcoming.Location: Windhoek, Namibia
Seventy-eight (78) households have been constructed in various settlements across Namibia. Additionally, the number of loans issued was noticeably increased.Community capacity:
An international exchange with Federation members from Zimbabwe looked at how networks are being built and increased the community's awareness of the importance of ownership amongst members without a reliance on leaders.
The commmunity's communication and financial management skills were improved by participation in this project. This improvement was augmented by the development, by all stakeholders, of a system in which information could be streamlined. As a result of the improved access to information, the community members are taking better care of the Fund.Scale:
This project demonstrates the Federation's capacity to construct housing. Indications are that the rate of housing construction continues to increase. This process is now recognised in Namibia as an acceptable, efficient and sustainable way to meet the needs of very-low income households. This recognition is evidenced by Government's release of Build Together funds during the construction period, as opposed to them waiting for construction to have been completed and/or making payments in phases.Impact:
The Government has committed to tripling their annual contribution to the Namibia Federation. In 2010, US$416,00.00 (current value: NAD5,528,036.80) was budgeted for by the Government, compared to US138,000.00 (current value: NAD1,833,819.90) the previous years.Finance: SDI Contributions:
The SDI provided US$275,000 of which US$250,000 was used as bridging finance for Build Together (pre-finance) loans. The remainder, US$25,000 was allocated for technical assistance.Resources Leveraged:
In addition to increased repayments (see costs recovered from community section below), there has been an increased flow of finance which has seen a record number of loans being awarded within a three (3) month period.Market Generated Returns:
None to date.Costs recovered from community:
The members contributed five percent (5%) of the loan amount upfront. They also used their own labour to cover some of the costs. Furthermore, more funds are being recovered from the members themselves in the form of repayments. These repayments are placed into a revolving fund and used to fund other projects, for example as loans for other members to construct their houses.
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Project information updated: 17 November 2015
Project in depth
In 2009 and 2010, the fund which also bridges finance loans from the Government's Build Together programme, provided loans for the construction of houses in a number of regions across Namibia.
The construction of seventy-eight houses in various settlements across Namibia.Community capacity:
Community members took part in an international exchange with their counterparts from Zimbabwe. The aim of this exchange was to build their skills base, with a particular focus on how networks are built. The exchange left a greater appreciation for the significance of community ownership of the land and processes without a reliance on leaders. This had the effect of:
- Creating a sense of onwership amongst all community members, and;
- Helping the community gain skills which will help them better manage their savings and the fund, as evidenced by increased repayments.
Delivery of seventy-eight (78) houses across Namibia as well as an increase in the number of loans being awarded.Impact:
The project has had a significant impact in terms of demonstrating the Federation's ability to build houses and stretch limited funds. The Federation has been meeting with various government authorities to ensure continued financial support from authorities. Savings have increased through this project yet membership has decreased. There is a need to increase leadership capacity to retain membership.Finance: SDI Contributions:
US$275,000.00Costs recovered from community:
None to date.
Ministry of Regional and Local Government, Housing and Rural Development. (n.d.). What is the Build Together Programme. [Online]. Available: http://18.104.22.168/opencms/opencms/grnnet/MRLGH/Programmes.
Ministry of Regional and Local Government, Housing and Rural Development. (2007). Namibia Build Together National Housing Programme Implementation Guidelines and Procedures. [Online]. Available: http://22.214.171.124/opencms/export/sites/default/grnnet/MRLGH/Documents/New_BTP_Book_19_March_2007.pdf.
Mitlin, D. (2008). Urban Poor Funds: Development by the People for the People. Human Settlements Working Paper Series: Poverty Reduction in Urban Areas No. 18. London: IIED.
Shack Dwellers Federation Namibia. (2015). Government is Committed to Uplift the Living Conditions of all Citizens says Urban Minister. [Online]. Available: http://namibia-shackdwellers.blogspot.co.za/2015/10/government-is-committed-to-uplift.html.