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Absa signs deal for low-cost housing
Opperman said the memorandum set out specific projects on which Absa and the NHFC would co-operate.
The initiative will focus at first on pilot programmes before broadening its scope. The pilot programmes are in Ngangelizwe, Elliotdale, Soweto-on-Sea, Mbashe, Motherwell, Elundini, Thornhill and Siyanda in the Eastern Cape; Mashishing in Mpumalanga; Grabouw in the Western Cape; and Diepsloot in Gauteng.
Absa has committed R1.6 billion towards ensuring the development of 100 000 affordable housing units by 2010, in addition to R150 million for project preparations.
Opperman said the agreement would help to address the shortage of affordable housing stock by creating rental units and supporting the development of integrated housing communities.
"Through the partnership with the NHFC, Absa aims to bring to bear our capability in property development and housing finance to speed up delivery," he said.
"Despite the building of over 2.4 million low-income houses over the past 10 years, South Africa's housing backlog continues to be a challenge."State statistics put the number of families currently living in informal dwellings at around 2.3 million, an increase of 26 percent over the same period."
Samson Moraba, the chief executive of the NHFC, said the partnership would help leverage and optimise the unique strengths each party brought to the initiative.
It would channel resources that would go far towards enhancing lives.
Moraba said the partnership would contribute to increased lending and investment in the affordable housing market.
It would also help to harness private sector capacity and expertise to accelerate the delivery of affordable housing on a large scale.
"This will open the doors to the future for the majority of underserved people in the low- to middle-income household market," he said.
Part of Absa's injection will be included in its R12 billion share of the R42 billion committed to affordable housing by next year by the major banks under the financial services charter.
Opperman said the intention was to leverage off the experience, skills and capabilities of both organisations.
He said Absa was meeting its targets and would surpass its charter commitments |
Posted on Tuesday, November 27, 2007 (Archive on Friday, December 14, 2007)
Posted by hayleym Contributed by hayleym
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