The Gauteng Department of Human Settlements is to improve channels of working with private sector to accelerate housing investments, this was said yesterday by MEC for Human Settlements, Jacob Mamabolo.
Mamabolo was speaking at the affordable housing roundtable discussion held in conjunction with Old Mutual in Sandton, aimed to address and tackle the challenges and bottlenecks experience in affordable housing in South Africa.
“The question is what does government have to do to build confidence in the sector so that they can invest and get return on investment,” asked Mamabolo.
The MEC said that Old Mutual became a key partner for the role that’s played through the Housing Impact Fund of South Africa, (HIFSA).
Debbie Newton, investment professional from Old Mutual Alternative Investments, who co-hosted the session with the MEC, said that open discussions and collaborative engagements like these are key to addressing and establishing solutions based platforms.
“Aligned courses of action between government and the private sector will benefit the long term socio economic development of South Africa.
“Housing and human settlement is a key focus area for the Development Impact Fund team, which manages the largest housing fund in South Africa, called HIFSA.
“HIFSA is a R9.15 billion fund, which finances affordable housing projects across South Africa.
“It has a dual mandate to provide investment returns to investors as well as make a positive, sustainable, socio economic impact,” said Newton.
Mamabolo continued to reiterate that some of the key bottlenecks experienced in affordable housing were: proclamation of townships, provision of bulk infrastructure and poor communication between government and private sector.
“Government has to improve the use of the urban settlements development grants meant for infrastructure and follow proper policies when entering into partnerships to make sure projects do not face challenges in the future,” said Mamabolo.
He also said that other contributing factors were red tape, inefficiency from government and stringent credit criteria implemented by financial institutions.
“The issues raised here will find a voice at the political meetings which are attended by MMC of human settlements.
“The department will soon open a troubleshooting line for the private sector to be able to raise issues and better planning will help open the pipeline that has caused the blockage of housing delivery.
“By the end of the current financial year, there will be a positive outlook on the relationship between government and private sector in order to unlock construction of houses in the next financial year,” said Mamabolo.
