President Mbumba sets conditions for Austrian housing proposal

Niël Terblanché

President Nangolo Mbumba stressed the importance of a structured approach to development projects within the country.

This statement followed a proposal by Austrian company Global Housing Solutions to address Namibia’s housing backlog by offering innovative modular building solutions.

During a visit to State House on Wednesday, former Austrian Chancellor Alfred Gusenbauer presented the proposal, which includes a contract with a state-owned Austrian bank for a loan featuring a three-year grace period before repayments commence.

Global Housing Solutions has proposed to build affordable houses in Namibia using a government-backed loan of N$1.4 billion (70 million euros).

Gusenbauer, who introduced representatives of Global Housing Solutions, said that the contract would also see the establishment of a local plant to produce building materials, potentially creating approximately 200 jobs for Namibians.

“We can replace slums and bring very modest living conditions to the people through our affordable houses. It’s possible because the cost of construction is very low compared to other technologies,” he said.

President Mbumba welcomed the proposal but, at the same time, stressed that all development submissions must first be discussed with the relevant ministry before being brought to the State House.

“This approach is crucial for ensuring that decisions benefit the country,” he said.

Namibia currently faces a backlog of 300 000 houses, despite efforts by various stakeholders to address the issue.

Global Housing Solutions is well-known for its innovative modular building solutions.

The company has a success rate in ten African countries, eight European nations, and twenty-one countries in South America.

Their projects focus on sustainability and affordability, leveraging advanced construction techniques to reduce costs and completion times.

The proposal to provide affordable housing aligns with Namibia’s Second Harambee Prosperity Plan, which targets the regularisation of undocumented and stateless individuals.

Gusenbauer informed President Mbumba that by integrating local production facilities, the project promises not only to address the housing shortage but also to contribute to job creation and economic growth.

The proposal emphasises the potential for international collaboration to address critical domestic issues, with Global Housing Solutions providing a globally tested model for affordable housing solutions.

Examples of their success include projects in countries like Chile, which has reduced its proportion of families living in sub-standard housing through innovative social housing programmes.

President Mbumba’s insistence on a preliminary discussion with the appropriate ministry ensures that the proposed projects are well integrated with national policies and priorities, maximising their benefit to the Namibian people.

He said that such structured and collaborative approaches are crucial for sustainable development.

Related Posts