Staff Reporter
THE cracks beneath the surface are growing wider in the City of Windhoek’s ambitious path to eliminating informal settlements, as the city has revised its funding for development and upgrading strategy from N$ 400 million to N$7 billion due to rapid urban growth.
This was revealed by the new Mayor of the City of Windhoek, Ndeshihafela Larandja who updated the media about her strategic plan for the City as well as challenges faced.
In September 2022, the City of Windhoek set out an ambitious path—its Five-Year Strategic Plan, pledging to become “a Sustainable and Caring City by 2027. The mayor has said that since then, Windhoek’s population has surged to nearly 486,000—about a third of Namibia’s urban population.

She added that by 2025, the city is expected to hit the half-a-million mark.
But behind this growth lies a painful truth. The mayor added that over 40% of residents—around 200,000 people—live in 130 informal settlements, battling daily with poor sanitation, inadequate services, and crumbling infrastructure.
Larandja said that to meet the housing crisis head on, the City committed to delivering 12,000 serviced plots (erven) by 2027 at a N$2.7 billion. Yet informal settlements continue to grow at 6.1% annually, far outpacing the city’s overall population growth.
Between 2011 and 2025, Windhoek saw over 52,000 new households—165,000 more people needing shelter and services. Servicing enough land to meet this demand is projected to cost N$7.8 billion. The numbers are daunting. The question looms larger each day: where will the money come from?
“We cannot build homes without solid partnerships,” says the Mayor. “The central government has supported some efforts—funding electrification and housing for informal areas—but we need more. Much more.”Larandja said.
It was highlighted that the challenge is immense, and so far, the city’s limited revenue from land sales, rates and taxes is not sustainable and that funding pressures should not be put on the public however.
Beyond pleading for more support, the Mayor’s office is building bridges—reaching out to the private sector and civil society to spark investment in council projects. “Housing is just one part,” the Mayor adds. “These partnerships can create jobs, uplift communities, and unlock a cycle of local economic growth.” Larandja said.
In 2021, Windhoek passed its Affordable Housing Policy—its first direct intervention in the housing market. A revolving fund was established with N$17 million in council capital, bolstered by over N$100 million from the central government. So far, over 500 houses have been built and paid for—proof that investment can work, and scale is possible.