Namibia is one of the more stable economies in sub-Saharan Africa thanks to a strong institutional framework, good fiscal oversight, and consistent monetary policy. Relative to its regional neighbours, the housing finance sector in Namibia is well developed. However, with the country having one of the most unequal income distributions in the world, the mortgage market typically serves the affluent. Less than 10 percent of the population has an outstanding home loan and most households are reliant on savings or non-mortgage credit to finance their housing.
Government schemes provide low-cost affordable housing, but progress has been slow. Little of the large foreign investment flows from China goes to the housing sector. In terms of the housing value chain, large foreign investors have tended to focus their money on financing banks and microlenders rather than directly investing in housing construction or property developers.Download PDF