Ongos Valley Development Limited
11/11/2021
Norsad Finance Limited, an impact investor providing tailor-made debt solutions to mid-market growth companies in sub–Saharan Africa, has provided a revolving facility to Ongos Valley Development, a transformative property development situated in the North West corridor of the city of Windhoek, with the intent of building 28,000 affordable residential housing units over the next 15 to 20 years. The promoters intend to deliver the project in several phases, with Phase 1 contributing 4,500 housing units to the Namibian Housing market over the next 5 years. The proposed Norsad funding is ZAR 110 million, which will go toward Phase 1.
Ongos Valley aims at addressing the critical housing shortage in Namibia by providing affordable housing solutions through direct purchases or a rent-to-own model that has been initiated. The Rent-To-Own Model was born from the need to provide alternative financing for individuals that do not qualify for a traditional home loan, but will be able to do so with a financial institution in the medium term. The model is an innovative and affordable pathway that allows clients to become entry-level homeowners.
The housing sector in Namibia ranks high on the governments development agenda, due to the existing acute deficit of affordable serviced land and housing.
Phase 1 of Ongos Valley is expected to create 14,000 job opportunities over the 5-year implementation period. These will be 4,140 full time jobs and 9,860-part time jobs. The project intends to provide Namibians with access to quality and affordable housing solutions while improving their overall standard of living.
Justin Nthala who is Investment Principal at Norsad said “Norsad is excited to be involved with Ongos Valley and help kick start the development that aims to be one of Africa’s first Green and Smart cities with a focus on sustainable energy utilization from renewable sources. Bulk infrastructure for Phase 1, in partnership with the Windhoek municipality, is in its final stages of installation and the first housing units are now being constructed.”
Soft and social infrastructure development is a key sector for Norsad. The development also links to a number of the United Nations Sustainable Development Goals such as Clean Water and Sanitation, Affordable and Clean Energy and Sustainable Cities and Communities. The investment is also in line with Norsad’s impact themes on Sustainable livelihood (employment creation and empowering local entrepreneurs) and Climate and clean energy (the project is expected to be Edge complaint).
About Norsad
For over 30 years, Norsad has invested in African businesses that clearly have positive impact and we have invested over USD450 million in more than 150 companies in various sectors in the region. More information www.norsadfinance.com
About Ongos
Ongos Valley is jointly owned by Fullbright Investment (80%) and Bonsec Investments (20%), with sponsors that have extensive experience in property development and management.
