GIPF to launch pension-backed home loan scheme following government approval

The Government Institutions Pension Fund (GIPF) is preparing to implement its long-awaited Pension-Backed Home Loan Scheme (PBHLS), following approval from the Ministry of Finance. Under the initiative, active GIPF members will be able to use a portion of their pension savings as collateral to access home loans, a significant step toward improving affordable housing access for civil servants.

Finance Minister Ericah Shafudah announced the scheme’s formal endorsement in Parliament, noting it is backed by amendments to the Pension Funds Act and involves collaboration with the Namibia Financial Institutions Supervisory Authority (NAMFISA) and the Office of the Prime Minister.

Meanwhile, the GIPF’s General Manager for Marketing and Stakeholder Engagement, Edwin Tjiramba, told Future Media news that the fund is awaiting the gazetting of the interest rate and the signing of a Memorandum of Understanding with the Prime Minister’s office. Once formalities are complete, First Capital Housing Scheme and Kuleni Financial Services will manage loan administration.

Photo: National Housing Enterprise (NHE)

The GIPF first secured board and regulatory approval for the PBHLS in 2016 and 2018, respectively, with the framework finalized in 2021. The fund has spent the last two years engaging members across the country to ensure understanding and readiness. The scheme allows members to finance residential land, homes, renovations, mortgage settlements, or housing improvements in both urban and rural areas.

Private-sector economists have praised the move, though they caution that members must balance the benefits of increased borrowing power with the risk to their future retirement funds. 

What Happens Next?
Once the MoU and interest rate are formalized, GIPF will begin onboarding its agent partners and communicating full details—such as eligibility, loan terms, and application procedures—to its members. The scheme is aimed at helping address housing inequality and enabling civil servants to build long-term wealth and security.