Housing Finance in Namibia


This profile is also available in French here.

To download a pdf version of the full 2019 Namibia country profile, click here.

Namibia is located on the Western coast of southern Africa, bordering South Africa, Botswana, Zambia and Angola. The country is both a member of the Southern African Development Community (SADC) and the Southern African Customs Union (SACU). Namibia largely consists of desert regions and has a population of just under 2.5 million.  Mining is the backbone of the Namibian economy. Political stability and sound economic management have helped anchor poverty reduction in Namibia. However, high unemployment (at 23.3%) and socio-economic inequities persist.

Amongst the four main commercial banks in Namibia, four are South African owned. At present, 78% of the Namibian population is banked.  Four commercial banks and one non-bank offer mortgage loans. The mortgage market is focussed on the middle- and higher-income market segments. Some bank lenders offer products that do not require down payments. Despite this many Namibians cannot access loan financing due to affordability, bureaucratic processes, high indebtedness and lack of education about the mortgage process. Access to finance is much more limited in towns with inadequate banking presence.

Namibia’s housing demand continues to outstrip supply, increasing rental prices in key urban centres. The middle-income segment is serviced by private property developers. However, the government continues to place housing delivery at the core of its development agenda. Government policy also aims to increase land supply ad incentivise the private sector to invest in housing.

Namibia’s housing shortage of about 110 000 units is an opportunity for housing development. Developers and financial institutions willing to partner with the government could help finance the development of housing stock.

The introduction of a digitised deeds registry and mortgage application process is also expected to make it easier and cheaper to transact.

However, the high cost and shortage of serviced plots is a significant barrier to housing delivery in Namibia.

Find out more information on the housing finance sector of Namibia, including key stakeholders, important policies and housing affordability:

Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2019 edition, which has up-to-date profiles for 55 African countries.

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