Housing in Southern Africa April 2016

Gauteng Partnership Fund (GPF) Chief Financial Officer, Komathie Govender, the astute and seasoned professional who has been tasked with overseeing finance, also chairs the internal investment advisory committee tomonitor and evaluate projects.

Komathie Govender

A former member of the Auditor General’s office, Govender has administered the funds of the GPF for the past nine years, ensur- ing that it complies with regulatory provisions, financial disciplines of control and good governance in the execution of its mandate. With a target of 1 200 housing units across the residential spectrum, the provincial funder has raised over R600 million in senior funding from the market for most of its projects. Govender says that the organisa- tion was set up and organised by the Gauteng Department of Human Settlements to promote, secure and optimise investment in the social, rental and affordable housing market. “We pride ourselves on be- ing an entity of government that is completely focused on delivery and, provide housing for income earners who earn between R3 500 and R7 500 per month. The demand for housing continues to escalate and with the Minister of Human Settlements, Lindiwe Sisulu, announcing the roll out of a num- ber of Catalytic Projects and mega projects, the GPF is positioned as a key player within the province. “One mega project may require at least R6 billion funding andwe believe we are an institution that can fund solutions. It is a discussion we are keen on hav- ing and are eager to get involved in the challenge,” says Muvevi. He cites the example of the EEPF: “At the time of the entrepreneurs fund’s inception, it was difficult to get funding partners on board but

in that delivery, we implement our mandate in the most efficient man- ner, as well as our comprehensive policies, ISO accreditation and our internal control structures.” She quips that she is a bean coun- ter, likes things to be perfect and runs a clean administration. “We have various products that havedeveloped over the years inorder tomeetmarket needs. One product is the emerging Entrepreneur Empowerment Prop- erty Fund, aimed at new entrants in the market.” The internal investment advisory committee monitors and evaluates projects. During construction and post construction, the entrepreneur will ultimately have to repay the funds. If the entrepreneur experi- ences some difficulties, the GPF will assist. “There are a number of actions we took the decision to implement the project. “We aimed to have 100 companies in the EEPF, even though commercial banks did not have the appetite. We know this is an area in whichwe have to intervene to change the property landscape and demo- graphics. We partnered with the DTI and are now one of the best perform- ing incubation entities.” Property entrepreneurs are nurtured, coaxed, supported and supervised from the first baby steps to full growth. Muvevi concludes with the obser- vation that in the United Statesmany landlords who own small apartment blocks have contributed much to the residential market. “Imagine,” he says, “What 5 000 small developers could contribute!” ■

GPF – Partner of Choice Continued ▶▶▶

safely invest in GPF’s capabilities, good governance, compliance and ingenuity, Muvevi continues, “One of the things we did was to build a team that is competent, so we have the discipline and process that allows us to perform our service delivery mandate.” For every unit that is vacated in the City of Johannesburg there is a waiting list. Of course investment is not only about demand, says Muvevi. The GPF also considers location. “The right location makes it easier for ten- ants to access schools, créches, shop- ping centres and transport nodes.” GPF’s target market is those with a household income of up to R18 000 for the rental and affordable housing markets. Social housing institutions

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