Namibia Mortgage Market – A Great Opportunity

High Demand for Home Ownership and short Supply of Mortgages Financing

  • The housing shortage is primarily a result of a lack of mortgage finance available locally. 
  • National housing shortage estimated to be close to 300,000 houses. 
  • The “Getting Credit” section of the World Bank’s Doing Business 2016 report ranks Namibia at 60 out of 189 countries.

Demand will only increase due to urbanization and migration from rural areas to major cities

According to African Economic Outlook 2016, the rate of urbanization in Namibia has been higher than the population growth rate. This has led to a proliferation of informal settlements in the major towns and urban centers.

Investor Considerations

  • Investment Grade (Moodys and Fitch) since 2005 - one of the most attractive Investment Destinations in Sub-Saharan Africa
  • US$ 1.25b Sovereign Debt currently outstanding (Yield 4.5- 5.5.%) 
  • Debt to GDP: 34% - Lower than Switzerland
  • Current President Received his BA from Fordham University and his MA at the New School in NYC 
  • Ex German Colony run in a fiscally conservative manner
  • Reliable legal system and property rights 
  • Stable democracy elected government 
  • Stable exchange rate linked to the SA rand 
  • Minimal capital controls 
  • Part of the African Common Monetary Area (CMA) and Southern African Development Community (SADC) 
  • Developed infrastructure 
  • Good transport system 
  • Efficient communication system, including cellular networks and the internet 

Additional Information

https://www.worldbank.org/en/country/namibia/overview

https://en.wikipedia.org/wiki/Economy_of_Namibia

http://www.heritage.org/index/country/namibia

https://www.afdb.org/en/countries/southern-africa/namibia/namibia-economic-outlook/

https://www.bon.com.na/Bank/Monetary-Policy.aspx