LETSHEGO TO LAUNCH AFFORDABLE HOUSING SCHEME IN NAMIBIA
Letshego said the product was initially aimed at customers in Namibia and Botswana, with roll-out plans to the group’s remaining pan-African countries.
Letshego struck a US$50 million loan deal from the International Finance Corporation, the World Bank’s private-sector lending division, for 4 000 affordable housing loans in Namibia to new homeowners, with the potential to expand that partnership to other countries.
The group said it has realised that citizens of many countries across Africa struggle to access housing for several reasons, including a lack of affordability, stringent qualifying credit criteria, restrictions in the location of houses available for financing, as well as rapidly escalating house prices spurred by rising inflation, and a lack of available land allocated to housing.
The Affordable Housing solution aims to mitigate access challenges experienced by individuals in broader communities by offering a choice in products, the group said.
This includes an all-in-one solution with land and a customisable house or capital to purchase material from local suppliers to renovate existing homes or properties.
“Home-improvement finance options include additional benefits, such as competitive pricing for labour, construction advisory support and quality building materials accessed via a dedicated network of established and accredited engineering and construction experts,” said the statement.
Letshego aims to bring structure and security to more families across its footprint with the launch of its Affordable Housing suite of financial solutions, which includes housing finance, construction, plot purchase and renovation.
According to the group’s statement, the Affordable Housing and Home Renovation solutions are accessible digitally via the LetsGo Digital Mall, making it easier for rural customers to access the financial solution.
Ester Kali, Letshego Nambia’s chief executive officer, says: “Transforming housing finance into a more diversely affordable and accessible solution is not as simple as offering a home loan with lowered interest rates.
“It’s about understanding the demographics and unique needs of our local communities, and then creating a solution that includes a multifaceted structure that offers a choice in approach and structure to suit our customers’ unique affordability criteria.
“Solution enhancements include choices in asset finance – be it land purchase financing, home construction or home renovation. There is also the development of effective credit evaluation structures that increase access to capital for more consumers, while still maintaining requirements in effective risk management so we may continue lending for many generations ahead,” she says.
Kali says Letshego’s Affordable Housing extends traditional housing beyond city centres, thus supporting rural councils and communities to develop their micro-economies.
To provide a more holistic level of support for customers, Letshego has established partnerships with local and international industry-related organisations and suppliers to expand the value of its Affordable Housing offering.
Celebrating the launch of the product, Letshego’s group chief executive, Aupa Monyatsi, says in many regions, owning a home is still a luxury.
“Ironically there are still many individuals and families across our communities who cannot access financial support to purchase or upgrade their homes – despite them being able to afford loan instalments,” he says.
Barriers to accessing housing finance include onerous qualifying credit criteria, an inability to provide adequate credit records, challenges in providing formal collateral, or evidence of regular income in the case of many small business owners.
“Letshego is committed to bridging the gap so that more individuals across our regional footprint can access support to buy or renovate their homes, thus providing dignity and long-term stability for more families, and solid foundations for our future generations,” Monyatsi says.
SOURCE: The Namibian