Martin Endjala
The Environmental Investment Fund of Namibia (EIF) has revealed that it will be partnering with the Government Institutions Pension Fund (GIPF) to address the pension-backed home loan scheme for members.
This comes after the EIF became aware of the unauthorised dissemination of a communique between the EIF and GIPF, addressing the pension-backed home loan scheme.
In a statement issued last week by the GIPF, the company explained that the letter which was not approved for dissemination to the public, is a collaborative effort between two stakeholders, who will explore an alternative housing loan scheme proposed by GIPF for its members, including EIF staff who are GIPF pension scheme members.
The envisioned scheme aims to offer cost-effective home loans, encompassing both urban and rural areas in Namibia, with the backing of members’ pensions.
However, the company stressed and cautioned that the leaked letter pertains to ongoing discussions among stakeholders.
The GIPF emphasised that the suggested pension-backed housing loan scheme remains a work in progress, and the leak is regrettable, given the private nature of the communication.
Upon completion of the pension-housing-backed scheme, GIPF is committed to sharing comprehensive details with the public and its fund members to facilitate access to such opportunities.
“We appreciate your understanding and cooperation in respecting the confidentiality of ongoing deliberations,” read the statement.
In 2023, GIPF announced its plans to introduce a pensioner-backed-home loan scheme, to assist its members in acquiring houses.
It is reported that only an estimated 30 percent of GIPF members have access to decent shelter. Furthermore, although the initiative is good, it however exposes retirees to risks, as their pension money which was intended to safeguard their livelihood, will now be used as collateral on their mortgages analysts opined.
Hence government and other stakeholders are urged to carefully analyse the proposed loan scheme and evaluate it, taking into account potential risks and long-term implications.
