Uutoni applauds improved financial performance of National Housing Enterprise

The minister of urban and rural development, Erastus Uutoni, has praised the National Housing Enterprise (NHE) for improving its finances, including recording a profit last year.

Speaking at the opening of the NHE’s annual general meeting on Friday, Uutoni commended the housing parastatal’s leadership for its achievements during the 2023/24 financial year.

“Realising a profit is surely an indication that an effort has been made to put the NHE in a financially sound position. After many years of being in the negative, at least now financial prudence is starting to show,” Uutoni said.

“I wish to encourage the leadership to keep improving this financial performance, so that the enterprise is able to do more for our people as far as housing provision is concerned,” Uutoni added.

He reiterated the NHE’s mandate, which is to finance and build decent, affordable houses.

The parastatal’s board chairperson, Toska Sem, stated that the NHE recorded a healthy financial position with a total asset base of N$1.2 billion in its last financial year. She added that the NHE realised a profit of N$6 million during the 2023/24 financial year.

Revenue increased by 35 percent, from N$169 million in 2023 to N$229 million in 2024.

This increase was due to more housing units being sold, which increased from 223 units in 2023 to 445 units in 2024, according to Sem.

“This healthy statement of financial position, along with a low debt/equity ratio and a moderate cash position, renders the enterprise resilient in the current economic climate. This has partly been made possible by the return of the mass housing mandate, but we have also adopted interventions that ensure efficiency such as engagements with local authorities,” she said.

However, Sem noted that the NHE has faced difficulties in acquiring affordable land in urban centres.

She added that the NHE has observed a worrying trend in which potential beneficiaries miss out on owning homes due to their negative creditworthiness.