The National Housing Enterprise (NHE) has reported a revenue increase from N$169 million in 2023 to N$229 million in 2024, a 35% rise, according to its 2023/2024 Annual Report launched at its Annual General Meeting in Windhoek.

The entity also recorded a profit of N$6 million, a significant improvement from a N$46 million loss the previous year.

Louise Shixwameni, Deputy Executive Director of the Ministry of Finance and Public Enterprises, praised the turnaround:

"From a company struggling to balance its budget to one with an integrated strategic business plan. In 2020, compliance was at 5%; now it’s at 95%."

NHE Board Chairperson Toska Sem highlighted the entity’s financial health.

"The enterprise has a total asset base of N$1.2 billion and achieved a profit of N$6 million in 2023/2024. This, along with a low debt-equity ratio, makes NHE resilient as it resumes its mass housing mandate."

The revenue and profit growth are attributed to the sale of 445 housing units, including 267 units valued at N$55 million under the Mass Housing Development Program. Rental revenue also rose by 5% to N$1.8 million in 2024.

NHE says it can build about 200 housing units annually without external borrowing. However, Urban and Rural Development Minister Erastus Uutoni urged higher targets.

"Namibia has a 300,000 housing backlog, with over 240,000 households in informal settlements. NHE builds 200 houses annually, but we need 15,000 to 20,000 yearly to reduce the backlog. I’ve asked the NHE board to aim for at least 5,000 to 10,000 houses annually."

Uutoni also addressed land affordability: "We’re amending the Local Authority Act to empower the minister to acquire land for NHE more efficiently. If public funds are used for servicing land, costs won’t be passed on to consumers."

NHE Board Member Hastings Tjipueja called for innovative solutions: "We need structured, affordable serviced land that doesn’t exploit market prices but delivers quality and affordability."

In the reviewed year, NHE earned N$98 million in interest income, with N$50.8 million from its loan book, which totaled N$1.1 billion as of June 2023.