Proposal on Investment Management Innovative End-User Funding For Residential Housing

Cities are complex systems, and across Africa, are growing at a rapid rate unprecedented in urban history. While the scale and pressure of urbanization is overwhelming, this agglomeration of activity offers an incredible opportunity for development. At the same time, the confluence of efforts to promote financial inclusion, urban development, infrastructure investment, and macro-economic policy attention create a uniquely enabling environment for the growth of housing in particular. As government, the private sector, and households and communities themselves find their places in the housing ecosystem, innovation is being found along each link in the housing value chain.” Lenders, investors, builders, and suppliers are getting much better at identifying and targeting niche markets. From a recognition of backyard rental and inner city refurbishment as viable housing supply streams, to the development of underwriting standards for borrowers in the informal economy, to the financing of incremental housing construction at scale, to the use of blockchain technology to improve titling efficiencies, innovation along the value chain and at the local level is making headway and creating precedent that is bankable.” Kecia Rust, Centre for Affordable Housing Finance in Africa (CAHF) 2019. The GIPF echoes these sentiments and is committed to participate at a level that is commercially viable yet impactful. The information as required by GIPF can be summarized as follows: A. Policy considerations pertaining to inclusive growth – innovative financial products 1. Provide us with your views of the Namibia residential housing market 2. In your assessment is there an unbanked/under-serviced section of the market which traditional mortgage finance has not captured, and how could these be included in financing residential housing? 3. What insights do you have of this under-serviced market? 4. For the affordable housing market (joint household income no more than N$30,000.00 per month), what are the concerns surrounding affordability of end users to procure homes? 5. The over indebtedness of consumers is cited as a major stumbling block, how would your proposed innovative end user funding overcome this concern? 6. Differentiate between legal and administrative impediments to funding residential housing, what are your recommendations for improvements B. Mandate considerations – developing a platform for innovative end user funding 1. Institutional long-term investors in Namibia are compelled to invest up to 45% in domestic assets, funds which have to be repatriated from elsewhere. What platform will allow for pooling these various funds to finance end-user funding which has tangible socio-economic benefits yet offers bond like features matching the liabilities of these types of Institutional investors. 2. Motivate what would be the optimal platform size and your fundraising plan to meet the required size, as well as over what period this scale may be achieved. 3. What would be the various functions and required organogram to run such a funding platform? 4. Provide an indicative budget for running an operation to fund innovative end user residential housing? C. Company specific 1. Provide a corporate profile of your entity 2. Provide your track record in providing end user funding 3. Provide specific experience and skills of your core team 4. Elaborate on your process 5. If your team is located in different locations, where is each function domiciled 6. Any specific licenses and registrations you hold with industry bodies; regulators etc.