By Staff Reporter
Windhoek, Oct. 24 — Development Bank of Namibia CEO Martin Inkumbi stressed the significance of serviced land as a crucial pillar for economic growth and activity during the opening of Auasblick Extension 1, a public-private partnership (PPP) between Sinco Investments and the City of Windhoek.
According to Inkumbi, commercial lenders mostly concentrate on financing top buildings, which are made up of housing units that are either more affordable or more expensive on the market. The lack of lenders ready to fund the construction of bulk land infrastructure is a common problem that DBN hopes to address.
According to him, a lack of serviced land hinders family capital building, the advancement of home ownership, and socioeconomic well-being. Serviced land is a resource that is taken into account for future needs as well. It stands for the future promise of wealth and economic activity.
First, serviced land and homes can be utilized as collateral for loans to businesses, according to Inkumbi. The Namibian enterprise ecosystem’s continued development is hampered by a lack of adequate collateral. The availability of serviced land benefits the private sector economy as a whole.
Second, the value of land and homes can be passed down through inheritances, intra-generational wealth transfers between parents and children who are still alive, or other means such as gifts.
Thirdly, serviced land gains value, according to Inkumbi. This increase in value can be offset by selling the item again.
In discussing the value of serviced land for the capital, he mentioned Windhoek, which is now suffering from a lack of serviced land and where land is anticipated to increase in value and become a part of the wealth of families from all economic levels. This deficit has an influence on the city’s potential to stimulate economic growth.
As a proportion of the land’s value, Inkumbi continued, owning land benefits people in all income groups. He went on to say that smaller plots of property with a lower municipal value can therefore be used as collateral in financing agreements for smaller businesses, whilst larger parcels of land with a higher value can be utilized as collateral for businesses of a larger scale. One aspect of business financing that is sometimes disregarded is the requirement for serviced land in higher income categories.
According to him, an effective mix of small, medium, and large firms with connections makes up a strong economic ecosystem. This results in both small businesses and large businesses becoming off-takers of one another’s goods and services.
He emphasized the vital role the Development Bank plays in providing funding and encouragement for land servicing. In this instance, the Bank has authorized financing for bulk infrastructure totalling N$76,855 million for phase one of the Auasblick extension, which includes 281 erven.
There is a clear, immediate development impact in addition to providing serviced land on which residential units will be built. During the construction phase, jobs are created, construction businesses have the chance to make money, and the manufacturing and building supply industries have the chance to profit.
Inkumbi concluded by stating that the Bank is prepared and ready to finance land development projects throughout Namibia, whether through private developers, local governments, or the Bank’s PPP model and its win-win proposition. He also invited those who are thinking about starting land development projects to get in touch with the Bank.
