SA gets housing boost
2009-11-26 13:07
Johannesburg - Affordable housing received a boost when Agence Française de Développement (AfD) entered into a loan agreement with the National Housing Finance Corporation (NHFC) on Thursday.
According to the NHFC and AfD the loan agreement is worth R225m. "The funding is intended for social and private rental projects supported by the NHFC," they said.
Speaking at the signing ceremony, NHFC chief executive officer Samson Moraba said his organisation would continue to look for partnerships with the private and public sectors to deliver on its mandate.
Supply and demand
"The demand for housing, in the affordable target market supported by the NHFC, continues to be greater than what is being supplied and the Corporation continues to seek out opportunities to enhance delivery," he said.
According to the two organisations, "The projects meet the NHFC criteria for social mix; close proximity to areas of employment and transport; and high urban density."
AfD chief executive officer Jean-Michel Severino said that until recently, downtown Johannesburg had experienced a period of disinvestment and deterioration.
"We believe the implementation of renovation policies and projects, such as the social housing initiative by NHFC, will attract residents, tourists, businesses and investors to revitalise this urban area," Severino said.
Urban renewal
The AfD credit line to NHFC would support the rehabilitation of central Johannesburg by funding corporate programmes such as the Affordable Housing Company (Afhco).
Afhco has been funded by the NHFC for its provision of low-cost housing and urban renewal in Johannesburg.
The NHFC said it continued to be a funder of social housing institutions and in the current year had provided funding to projects in all provinces where such projects were being built.
"AfD as an institution is not new to us as we have enjoyed a healthy and vibrant relationship with them," Moraba said.
R3.5bn commitment
The funding commitment announced by AfD during its four-day visit to South Africa amounted to R3.5bn.
"This was towards socio-economic initiatives by the Desmond Tutu HIV Foundation, Global Rating, Central Energy Fund, Transnet and the Development Bank of Southern Africa," it said in the statement.
The AfD also met Capitec Bank and the Airports Company of South Africa.
The NHFC was established by the government in 1996 as a development finance institution with the principal mandate of broadening and deepening access to affordable housing finance for the low- to middle-income households.
It provides funding support for the residential property market, particularly when finance is not readily available.
- SAPA