IFC is a member of the World Bank Group focussed on the private sector in emerging markets with presence in 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2020, they invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity.
Through the partnership, IFC will extend the $50 million facility to Letshego subsidiary in Namibia, which will finance housing to over 4,000 Namibians. Letshego Group CEO Andrew Okai said affordable housing is one of Letshego’s areas of focus in delivering on its purpose to improve lives by enabling more members of the community to access capital to build or improve their homes whenever they may be located.
“Our strategic purpose is clear; we want to improve lives across the communities where we operate. Increasing access to simple and appropriate financial solutions, for more individuals and small business owners, will enable us to deliver on this promise,” Okai said. “By working with a number of valued partners, we deliver solutions that ultimately contribute to addressing the housing deficits across various communities in Africa. We look forward keenly to continuing the development of our Botswana-specific solution and extending that to many more customers in our home market,” he said.
Okai said although 78% of Namibians have a bank account, only 12% of households have mortgage-financed homes. The majority of Namibians do not qualify for mortgages from commercial banks because they are often unaffordable.
He said by partnering with global institutions like IFC, who share their vision of achieving social impact through sustainable commercial strategies as Letshego, they can unlock exponential value and potential to do more. IFC’s Country Manager for Eswatini, Lesotho, Namibia, South Africa and Zimbabwe, Adamou Labara said IFC works with partners across Africa to help increase access to affordable housing including supporting the development of sustainable and responsible mortgage markets. “By supporting partners like Letshego to increase the availability of affordable housing loans, we hope to enable more individuals to access quality housing in Namibia,” he said.
