The Ministry of Urban and Rural Development says about N$300 million remains available for housing construction, but the funds must be shared among 59 local authorities amid growing demand for serviced land and housing.
The ministry’s deputy director of housing development, Kornelius Taseb, told the National Assembly standing committee on urban and rural development and land reform last Wednesday that budget constraints were limiting the government’s ability to respond to the housing crisis.
The committee held oversight visits at informal settlements in the Kavango East, Kavango West, Zambezi and Otjozondjupa regions.
“Budget constraints remain an issue and I do not know how far we can go,” Taseb said, adding that housing finance is also limited because there are not enough funds.
He said mushrooming informal settlements are among the technical challenges facing the ministry, but proactive planning could help address the problem.
Taseb said research was underway to assess the housing market and identify affordable construction methods before construction begins.
The ministry’s presentation showed that 28.7% of households live in informal dwellings or shacks, rising to 40% among urban households.
The government’s sixth National Development Plan aims to reduce the proportion of households living in informal settlements to 16.7% by 2030.
It also aims to increase serviced plots from 25 111 to 50 000 and raise the number of houses constructed from 12 598 in 2024 to 55 126 by 2030.
However, the ministry identified scarcity of serviced land, high construction costs, limited housing finance and a mismatch between available housing products and what low- and middle-income households can afford as major challenges.
The 2026/27 budget provides N$406.5 million for the informal settlement upgrading affordable housing programme, while N$20 million each is allocated to the Build Together programme and the Shack Dwellers Federation of Namibia.
The ministry also plans to accelerate informal settlement upgrading, serviced land delivery and affordable housing, while strengthening cooperation with local authorities, the private sector and housing organisations.
According to the Sustainable Development Goals, about 21 000 houses are targeted by 2030, but this has been delayed due to low funds.
Critics have previously suggested that local authorities must find alternative ways to make revenue to ease the ministry’s burden and also partner with other housing organisations or source funds elsewhere.
Credit: The Namibian
