Windhoek: The government has approved and is now implementing a pension-backed home loan scheme for civil servants, allowing them to use their retirement savings as collateral. Finance and Social Grants Management Minister Ericah Shafudah confirmed this in a ministerial statement in the National Assembly.
According to Namibia Press Agency, the government, through Shafudah’s ministry in collaboration with the Namibia Financial Institutions Supervisory Authority (Namfisa) and the Government Institutions Pension Fund (GIPF), has endorsed the scheme. The process is underwritten by the Office of the Prime Minister.
The initiative aims to improve access to decent and affordable housing, particularly for civil servants who are unable to meet conventional bank loan requirements. Under the scheme, members of GIPF, both in proclaimed and unproclaimed areas, will be able to use a portion of their accumulated pension savings as collateral for home loans.
This facility can be used to purchase residential property or land for housing, as well as to construct or renovate a dwelling. Beneficiaries may also use the facility to pay off an existing home loan or to enhance basic housing conditions.
Shafudah told Parliament that the Pension Funds Act 24 of 1956, as amended, allows a pension fund to provide loans to its members for housing purposes in proclaimed and unproclaimed areas. The government is finalising administrative arrangements with GIPF and payroll systems to ensure seamless implementation. Civil servants will soon receive further communication from GIPF and their respective ministries regarding eligibility, terms, and the application process.
The government has set the scheme’s pricing at the Bank of Namibia’s Repurchase Rate plus 2.5 per cent to ensure national affordability for the beneficiaries. Shafudah emphasized that the implementation of this scheme marks a step forward in tackling housing inequality and empowering public servants to own homes and live with dignity.