Date: 31/01/2003
Source: Ministry of Housing
Title: Mthembi-Mahanyele: Executive Programme in Housing Finance launch
KEYNOTE ADDRESS BY HOUSING MINISTER SANKIE MTHEMBI-MAHANYELE AT THE JOINT LAUNCHING OF THE INTERNATIONAL HOUSING FINANCE EXECUTIVE PROGRAMME BY THE WITS SCHOOL OF PUBLIC AND DEVELOPMENT MANAGEMENT AND THE WHARTON SCHOOL UNIVERSITY OF PENNSYLVANIA, Johannesburg, 31 January 2003
Programme Director
Programme Co-ordinator (Ms Petal Thring)
Guest Panellists from the Wharton School
University of Pennsylvania
Local Panel Members
Participants
Distinguished Guests
Ladies and Gentleman
It gives me great pleasure to be here and talk about a subject that is not only close to the hearts of the majority of South Africans, but also in the mouths of many commentators in recent months. I would like to thank both the Wits University School of Public and Development Management and the Wharton School University of Pennsylvania for their joint effort in the development and implementation of this comprehensive internationally recognised Executive Programme in Housing Finance.
The course will provide advanced valuable knowledge, insights, and working skills, which are critical to housing practitioners. In the emerging world of information and knowledge sharing, education and training become vital necessities for any institution to function optimally. Skills and learning are fundamental to our success as a nation and we should be in no doubt that the skills of our people will be the single most important asset in our drive to build South Africa into one of the world's successful economies.
I am extremely happy that you have found such knowledgeable experts to train and qualify our practitioners to meet challenges that we are facing in the delivery machinery. Institutions of higher learning are major assets and should make major contributions to the country's skills pool and transfer of international skills.
My Department put the issue of capacity building and skills development in housing-related fields high on its priority list as early as 1994. It therefore did not come as a surprise to us when, in 1995, the Ministerial Task Team on Capacity in Housing, identified inadequate capacity at provincial and local government levels as one of the factors stunting effective and sustainable housing delivery. It also emerged from our assessment at the time that there were skills shortages across the spectrum of housing, not only within our administrative structures.
These were and still are, to a certain extent, the inability of institutions of higher learning to move with and respond to a changing social and business environment. The reality that housing and housing finance need high calibre professionals and specialists who have the capacity to address the many challenges that affect housing delivery has become something we all need to embrace. This implies therefore that although the government has generally achieved much in capacity building and skills development within the industry, there is still a lot that needs to be done. In this regard, our success towards this endeavour depends on our collaboration with others and the partnerships we build with public and private institutions.
I must admit that it was precisely because of this understanding that we developed a framework for housing capacity building programme, which divided capacity building into two phases, namely:
* To address the short-term capacity needs at national, provincial and local level through the transfer of knowledge and skills by means of working sessions and ongoing empowerment initiatives; and
* To address the long-term needs in respect of the training of housing managers and administrators through classroom tuition.
In addition, the Department of Housing has promulgated sound policy fundamentals, which we need to translate into actual tangible programmes with the help of our institutions of higher learning. As I have already indicated, housing delivery faces different challenges that the government cannot meet on its own. The past nine years have proved that large-scale housing delivery is achievable through a series of interventions coupled, inter alia, by the specific training programmes that enable us to develop functional capacity.
Our relationship with the University of the Witwatersrand is not new. The Department, in conjunction with Wits Graduate School of Public and Development Management, designed and ran two successful housing courses as a pilot project in which a total of 78 students completed the courses in 1998. Out of the 78 participants who attended the courses, 80% were drawn from provinces and 20% from the national Department of Housing.
Towards the end of 1999 the training programme was evaluated and due to the positive results of the evaluation it was decided that the programme should be continued on a decentralised basis. The decentralisation ensured that the programme was spread to all provinces and that it reached a large number of officials from provinces and municipalities as well as councillors. Most important, is the fact that several other local universities, NGOs and other private service providers were also involved in the implementation of the decentralised programme. In other words our partnership with Wits University paved the way for more partnerships with other institutions.
To date approximately 4 500 officials have been trained in 20 housing and related short courses that we have conducted with the help of our partners. The major courses were Housing Policy Development and Management, Project Management, Housing Financial Administration and Global Housing Trends.
We are committed to work with all the institutions to alleviate skills deficiency in the housing sector. My department has played a central role in the coordination and facilitation of the development of housing education standards and qualifications in 2000. This activity was coordinated through the Housing Standard Generation Body (SGB) that the sector launched during 2000 before it was formally recognised by SAQA in 2001.
The Department is also represented in the Construction SETA (CETA), which is responsible for coordinating and facilitating the development of learnerships, work place skills plans, as well as funding of skills development programmes.
I have always pledged my support as well as that of my Department and the government as a whole to the academic institutions that seek to improve the skills of our people. On our side, we have initiated a housing scholarship programme for matriculants who wish to pursue a career in housing. In the 2002 academic year, with the help of the Construction SETA, we awarded 10 bursaries to students who are studying engineering courses at Universities and Technikons.
In addition, the Department coordinated the establishment of the Housing Educators Forum. This Forum is composed of trainers and educators from universities, technikons and NGOs. The main objective of this Forum is to advance housing education and training in South Africa through networking and dialogue. It is currently establishing a research network among the participants as well as setting up regional housing education forums where issues of regional interest (relating to housing education and capacity-building) could be debated. This body will also act as an external resource to assist in the professionalisation of the housing sector.
The challenge facing the government on the issue of housing finance, especially access to credit by the poor, is immense and needs a multi-pronged approach to tackle. The 1,45 million low-cost houses the government has built since 1994 have taught us that we still need to get everyone on board to help our people get access to housing finance not only as borrowers, but also as financial consultants. To ensure that delivery occurs and that the problems of the poor to have access to credit are dealt with, we have increased our capital subsidies in the past year; and hot on the heels of the Home Loan and Mortgage Disclosure Act, the Cabinet will soon be sitting to look at the updated and improved Community Re-investment (Housing) Bill. Once approved, the Act will compel financial institutions to serve the poor in a non-discriminatory, non-racial and non-biased manner as long as they, in turn, respond sufficiently and convincingly to their obligations. Affordability and sustainability are key to closing the gap between institutions and households.
Financial institutions will be required to set aside a prescribed portion of funding in respect of housing finance for middle and lower income households. They can lend directly to individuals or through specialised housing finance vehicles like the National Housing Finance Corporation (NHFC), and other niche market lenders. We need their commitment to enhance our objectives of implementing our housing programme efficiently. Active partnerships between stakeholders are key in achieving our goals and objectives in this regard.
A survey commissioned by NHFC in February 2001 showed a high concentration of the population in the lower income groups, with nearly three quarters of respondents declaring household income under R2600 per month. The study showed that 29% of household surveyed earned below R1000, 44% between R1000 - R2600, 16% between R2601 - R4200 and 7% between R4201 - R6000; only 4% earned above R6000. This revelation poses a great challenge with regards to making housing finance accessible to the poor.
Academic institutions have a pivotal role to play through their training curricula, by offering programmes that respond to the needs of our people. A classical example has been set here today by two globally renowned institutions. We have a structure, a vision, policies, and programmes in place, which require extensive knowledge and technical skills for them to be accelerated. As a challenge I would like to recommend to Wits that a chair for housing finance be created that could lead to the development of our local experts.
I am particularly impressed with this initiative, trusting that it will bear the necessary fruits in the form of skills and knowledge acquired. For these efforts, I must extend my sincere gratitude to all the parties who ensured that this programme becomes a reality.
I would like to thank in particular the two academic institutions, the Wharton School University of Pennsylvania and the Wits University Graduate School of Public and Development Management.
I also want to congratulate all those who are enrolling for this programme, trusting that they will find the course interesting. Upon completion, the participants will indeed be more equipped to EXTEND HOUSING FINANCE DOWN-MARKET IN SOUTH AFRICA.
Lastly, ladies and gentleman, I wish to emphasise that it is our mutual responsibility to address the housing challenge in a more focused approach by employing and implementing creative and innovative solutions. It is through programmes like these that provide all of us with the expertise to deal with the housing problem in our country. I would like to wish you all a successful programme.
I thank you.
Issued by Ministry of Housing
31 January 2003
Source: Ministry of Housing
Title: Mthembi-Mahanyele: Executive Programme in Housing Finance launch
KEYNOTE ADDRESS BY HOUSING MINISTER SANKIE MTHEMBI-MAHANYELE AT THE JOINT LAUNCHING OF THE INTERNATIONAL HOUSING FINANCE EXECUTIVE PROGRAMME BY THE WITS SCHOOL OF PUBLIC AND DEVELOPMENT MANAGEMENT AND THE WHARTON SCHOOL UNIVERSITY OF PENNSYLVANIA, Johannesburg, 31 January 2003
Programme Director
Programme Co-ordinator (Ms Petal Thring)
Guest Panellists from the Wharton School
University of Pennsylvania
Local Panel Members
Participants
Distinguished Guests
Ladies and Gentleman
It gives me great pleasure to be here and talk about a subject that is not only close to the hearts of the majority of South Africans, but also in the mouths of many commentators in recent months. I would like to thank both the Wits University School of Public and Development Management and the Wharton School University of Pennsylvania for their joint effort in the development and implementation of this comprehensive internationally recognised Executive Programme in Housing Finance.
The course will provide advanced valuable knowledge, insights, and working skills, which are critical to housing practitioners. In the emerging world of information and knowledge sharing, education and training become vital necessities for any institution to function optimally. Skills and learning are fundamental to our success as a nation and we should be in no doubt that the skills of our people will be the single most important asset in our drive to build South Africa into one of the world's successful economies.
I am extremely happy that you have found such knowledgeable experts to train and qualify our practitioners to meet challenges that we are facing in the delivery machinery. Institutions of higher learning are major assets and should make major contributions to the country's skills pool and transfer of international skills.
My Department put the issue of capacity building and skills development in housing-related fields high on its priority list as early as 1994. It therefore did not come as a surprise to us when, in 1995, the Ministerial Task Team on Capacity in Housing, identified inadequate capacity at provincial and local government levels as one of the factors stunting effective and sustainable housing delivery. It also emerged from our assessment at the time that there were skills shortages across the spectrum of housing, not only within our administrative structures.
These were and still are, to a certain extent, the inability of institutions of higher learning to move with and respond to a changing social and business environment. The reality that housing and housing finance need high calibre professionals and specialists who have the capacity to address the many challenges that affect housing delivery has become something we all need to embrace. This implies therefore that although the government has generally achieved much in capacity building and skills development within the industry, there is still a lot that needs to be done. In this regard, our success towards this endeavour depends on our collaboration with others and the partnerships we build with public and private institutions.
I must admit that it was precisely because of this understanding that we developed a framework for housing capacity building programme, which divided capacity building into two phases, namely:
* To address the short-term capacity needs at national, provincial and local level through the transfer of knowledge and skills by means of working sessions and ongoing empowerment initiatives; and
* To address the long-term needs in respect of the training of housing managers and administrators through classroom tuition.
In addition, the Department of Housing has promulgated sound policy fundamentals, which we need to translate into actual tangible programmes with the help of our institutions of higher learning. As I have already indicated, housing delivery faces different challenges that the government cannot meet on its own. The past nine years have proved that large-scale housing delivery is achievable through a series of interventions coupled, inter alia, by the specific training programmes that enable us to develop functional capacity.
Our relationship with the University of the Witwatersrand is not new. The Department, in conjunction with Wits Graduate School of Public and Development Management, designed and ran two successful housing courses as a pilot project in which a total of 78 students completed the courses in 1998. Out of the 78 participants who attended the courses, 80% were drawn from provinces and 20% from the national Department of Housing.
Towards the end of 1999 the training programme was evaluated and due to the positive results of the evaluation it was decided that the programme should be continued on a decentralised basis. The decentralisation ensured that the programme was spread to all provinces and that it reached a large number of officials from provinces and municipalities as well as councillors. Most important, is the fact that several other local universities, NGOs and other private service providers were also involved in the implementation of the decentralised programme. In other words our partnership with Wits University paved the way for more partnerships with other institutions.
To date approximately 4 500 officials have been trained in 20 housing and related short courses that we have conducted with the help of our partners. The major courses were Housing Policy Development and Management, Project Management, Housing Financial Administration and Global Housing Trends.
We are committed to work with all the institutions to alleviate skills deficiency in the housing sector. My department has played a central role in the coordination and facilitation of the development of housing education standards and qualifications in 2000. This activity was coordinated through the Housing Standard Generation Body (SGB) that the sector launched during 2000 before it was formally recognised by SAQA in 2001.
The Department is also represented in the Construction SETA (CETA), which is responsible for coordinating and facilitating the development of learnerships, work place skills plans, as well as funding of skills development programmes.
I have always pledged my support as well as that of my Department and the government as a whole to the academic institutions that seek to improve the skills of our people. On our side, we have initiated a housing scholarship programme for matriculants who wish to pursue a career in housing. In the 2002 academic year, with the help of the Construction SETA, we awarded 10 bursaries to students who are studying engineering courses at Universities and Technikons.
In addition, the Department coordinated the establishment of the Housing Educators Forum. This Forum is composed of trainers and educators from universities, technikons and NGOs. The main objective of this Forum is to advance housing education and training in South Africa through networking and dialogue. It is currently establishing a research network among the participants as well as setting up regional housing education forums where issues of regional interest (relating to housing education and capacity-building) could be debated. This body will also act as an external resource to assist in the professionalisation of the housing sector.
The challenge facing the government on the issue of housing finance, especially access to credit by the poor, is immense and needs a multi-pronged approach to tackle. The 1,45 million low-cost houses the government has built since 1994 have taught us that we still need to get everyone on board to help our people get access to housing finance not only as borrowers, but also as financial consultants. To ensure that delivery occurs and that the problems of the poor to have access to credit are dealt with, we have increased our capital subsidies in the past year; and hot on the heels of the Home Loan and Mortgage Disclosure Act, the Cabinet will soon be sitting to look at the updated and improved Community Re-investment (Housing) Bill. Once approved, the Act will compel financial institutions to serve the poor in a non-discriminatory, non-racial and non-biased manner as long as they, in turn, respond sufficiently and convincingly to their obligations. Affordability and sustainability are key to closing the gap between institutions and households.
Financial institutions will be required to set aside a prescribed portion of funding in respect of housing finance for middle and lower income households. They can lend directly to individuals or through specialised housing finance vehicles like the National Housing Finance Corporation (NHFC), and other niche market lenders. We need their commitment to enhance our objectives of implementing our housing programme efficiently. Active partnerships between stakeholders are key in achieving our goals and objectives in this regard.
A survey commissioned by NHFC in February 2001 showed a high concentration of the population in the lower income groups, with nearly three quarters of respondents declaring household income under R2600 per month. The study showed that 29% of household surveyed earned below R1000, 44% between R1000 - R2600, 16% between R2601 - R4200 and 7% between R4201 - R6000; only 4% earned above R6000. This revelation poses a great challenge with regards to making housing finance accessible to the poor.
Academic institutions have a pivotal role to play through their training curricula, by offering programmes that respond to the needs of our people. A classical example has been set here today by two globally renowned institutions. We have a structure, a vision, policies, and programmes in place, which require extensive knowledge and technical skills for them to be accelerated. As a challenge I would like to recommend to Wits that a chair for housing finance be created that could lead to the development of our local experts.
I am particularly impressed with this initiative, trusting that it will bear the necessary fruits in the form of skills and knowledge acquired. For these efforts, I must extend my sincere gratitude to all the parties who ensured that this programme becomes a reality.
I would like to thank in particular the two academic institutions, the Wharton School University of Pennsylvania and the Wits University Graduate School of Public and Development Management.
I also want to congratulate all those who are enrolling for this programme, trusting that they will find the course interesting. Upon completion, the participants will indeed be more equipped to EXTEND HOUSING FINANCE DOWN-MARKET IN SOUTH AFRICA.
Lastly, ladies and gentleman, I wish to emphasise that it is our mutual responsibility to address the housing challenge in a more focused approach by employing and implementing creative and innovative solutions. It is through programmes like these that provide all of us with the expertise to deal with the housing problem in our country. I would like to wish you all a successful programme.
I thank you.
Issued by Ministry of Housing
31 January 2003
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