GIPF in key pledge towards Harambee
The Government Institutions Pension Fund (GIPF) plans to construct 6000 of the 20,000 houses and develop 7,800 of the 26,000 new residential plots as promised in the Harambee Prosperity Plan (HPP).
GIPF Chief Executive Officer David Nuyoma said on Wednesday that the fund had committed itself towards joining government’s efforts of providing serviced land, housing and sanitation to the people of Namibia.
“The GIPF strategy is to use Special Purpose Vehicles (SPVs), managed by Fund Managers to carry out these investments on its behalf and ensure that execution and implementation are delivered in a professional manner.
“GIPF is in partnership with one such SPV, called Preferred Investment Property Fund (PIPF), which has been mandated to invest in both urban and industrial developments,”Nuyoma said during the launch of the GIPF housing for men and women in uniform initiative.
He said the housing initiative will be the pension fund’s contribution towards the attainment of pillar three of the HPP, which deals with social progression as outlined in chapter five of the plan.
“In 2008 GIPF introduced an Unlisted Investment Program (UIP), focused on investing strictly in Namibian businesses or entities to stimulate economic activities in the country.
“GIPF in partnership with one such SPV, called Preferred Investment Property Fund (PIPF) which has been mandated to invest in both urban and industrial developments initiated at the Osona Village. We are grateful to Cde Jacob Nghifindaka and Mr Mark Cioccolanti of PIPF for their foresight,” Nuyoma said.
Osona Village, which will be developed in phases, is expected to deliver approximately 3, 419 Ervens and 11, 000 residential housing units when completed.
“The main objective of this development is to provide affordable serviced residential land, build capacity, and support the creation of social and economic upliftment in Namibia whilst yielding the desired investment returns for our members,” he said.
The servicing of the 400 plots marked phase one, which had been completed.
The event at Osona Village witnessed the ground breaking ceremony of the commencement of the actual housing units that have already been taken up by members of the country’s uniformed forces.
Nuyoma said to date, GIPF had committed N$3.3 billion through its UIP, the majority of which had been earmarked for property development and financing of bonds on homes for civil servants.
He said some of the milestones realised through the program include the servicing of about 1, 700 ervens countrywide; construction and delivery of 559 houses; financing of 1, 810 mortgage houses and mall developments.
“We are in the second phase of our UIP and have committed an additional N$2.6 billion to private equity investments, debt and infrastructure as well as land servicing and housing.
“We believe that the deployment of these funds will make a tangible contribution to the economic landscape of Namibia and its people and go a long way in ensuring the HPP becomes a reality,” concluded Nuyoma.