The Government Institutions Pension Fund (GIPF) says it is committed to funding Namibia’s real economy, with bulk infrastructure for land servicing being an important socioeconomic investment.

This was said by GIPF Chief Executive Officer, David Nuyoma, on Friday at the launch of phase one of Extension 1 of a housing project in the verdant suburb of Auasblick in Windhoek.

He announced that the project is back on track after it secured funding from the Development Bank of Namibia, which serves as Senior Funder with a debt funding of N.dollars 76.5 million, and GIPF through Mergence Unlisted Investment Managers Namibia, providing equity capital of N.dollars 53 million.

The project is divided into two phases, the first of which covers 118 erven and the second which covers 165 erven.

Phase one began construction in August 2021 and is now 79 per cent complete, according to GIPF, with completion scheduled for the end of February 2023.

“The Auasblick project is an exemplary transaction in that it enabled risk sharing among investors such as DBN on the debt side and Mergence on the equity side. The transaction also involves a public-private partnership with the City of Windhoek, which allows for faster development. Such transactions have a high multiplier effect on job creation and money circulation,” Nuyoma said.

He stated that GIPF is determined to remain an active contributor to the Harambee Prosperity Plan’s housing provision pillar.

“In order for this to happen, local governments must work together to contribute land, as the City of Windhoek has done,” he highlighted.

Erastus Uutoni, Minister of Urban and Rural Development, stated that the government recognises everyone’s right to an adequate standard of living, including adequate housing, and that the provision of basic infrastructure and services remains one of the top priorities at all levels of government, whether Central, Regional or Local.

“The houses that will be built will make a significant contribution to reducing the national housing backlog. The ministry and the government at large welcome initiatives that clearly demonstrate smart partnership and participation, which remains a central theme of action to transform our towns, particularly the capital city, into frames of promise, opportunity and hope in the lives of our men, women and children,” Uutoni said.

Source: The Namibian Press Agency