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The National Housing Enterprise (NHE) requires an estimated N$76 billion to address Namibia’s housing backlog of around 300 000 units. This is according to NHE board chairperson Toska Sem. Speaking at the launch of the housing enterprise’s Integrated Strategic Business Plan for 2024/25 to 2028/29 on Wednesday, Sem said the country’s housing crisis is driven by limited serviced land, high construction costs, and inadequate funding. “Namibia is currently experiencing a housing crisis, with a substantial backlog in housing delivery that is associated with exorbitant costs. The estimated figure stands at 300 000 housing units, tied to a financial provision of N$76 billion,” Sem said. She explained that the NHE has projected total revenue of N$4.4 billion over the next five years as part of a new financial strategy to ensure the organisation’s sustainability and viability amid Namibia’s ongoing housing challenges. She said the NHE has identified several strategic issues that need to be addressed to meet its targets, including the scarcity of serviced land, limited funding that restricts housing delivery, the need for innovation to stay competitive, and a misaligned organisational culture. “Our strategic objectives are focused on responding to housing needs, increasing sales, strengthening partnerships, improving financial sustainability, entrenching corporate governance, and enhancing human resource productivity,” Sem said. According to Sem, the NHE’s financial plan projects a cost of sales equivalent to 80% of the selling price, with a 20% markup to maintain a gross profit margin of 15-20%. She emphasised that both government support and private investment are crucial to sustaining growth and improving access to affordable housing. Sem further noted that a comprehensive risk management framework has been implemented to enhance risk awareness and align mitigation strategies with the organisation’s objectives. She said the main risks facing the NHE include funding constraints, compliance challenges, weaknesses in project management, and insufficient serviced land. “Each risk is assessed for its likelihood and impact, and control measures have been developed to ensure operational stability,” Sem said. She added that the new plan will be operationalised through annual business and financial plans, with progress evaluated quarterly. The NHE will also roll out an automated performance management system to improve efficiency and track progress toward strategic goals, Sem said. “This approach allows for incremental benefits through future housing upgrades. Most importantly, we must address the unstandardised and misaligned organisational culture, as there is significant room for internal improvement,” she said.
