Olivenhoutbosch is the country's first fully sustainable integrated development in the affordable housing arena. This 5,411-unit housing development was created by Absa Devco, a division of banking group Absa (ASA), in conjunction with the Tshwane Municipality.
The total development cost for the project is R1bn. Absa is also involved in other similar projects such as Albert Luthuli, Kagiso, Klarinet and Knysna with a total development cost of R7,5bn.
Louis von Zeuner, deputy chief executive of Absa, introduced the French Minister of Foreign Trade to the standards of housing made available through this partnership to the people of the nation.
All Absa housing developments are based on Breaking New Ground (BNG) principles whereby consistent levels of services are a key objective of the entire development including the subsidised components.
This is the celebration of a successful partnership between Absa and the French Development Agency (Agence Française de Development - AFD), through which €40m were made available in September 2007 for funding end-user finance in the affordable housing market.
"We are delighted that Absa and AFD can claim through this partnership that we have and are still helping home buyers who have joint household monthly incomes of less than R15k, to buy their dream homes," says Von Zeuner.
"We believe all South Africans should be afforded the opportunity to have a roof over their heads that they can call their own," said Von Zeuner.
The concessionary loan finance agreement signed in September 2007 is used to help Absa affordable housing customers buy their own homes and also to significantly build capacity and skills in the country's affordable housing sector. This concessionary loan has already been applied in the affordable housing market and has assisted hundreds of South Africans to buy a home which they can call their own.
AFD is a French government institution set up to provide development financing especially for urban, rural and infrastructural development, as well as industry, financial systems, education and health. In line with the SA Government's Affordable Housing National Policy, the AFD has been instrumental in the creation of new stocks of housing to low and middle-income households by committing €120m to Absa and other financial institutions. In addition to this, AFD embarked on a partnership with Absa and the National Housing Finance Cooperation to provide accredited training to previously disadvantaged estate agents.
"We primarily focus on specialised financing for sustainable development projects that are carried by government, local authorities, public companies and the private sector," said Christophe Richard, regional representative of AFD.
The Absa and AFD deal is unique in that 75% of the subsidised benefit of this credit line has been applied solely for Absa's "My Home" clients to enhance the purchasing ability in this income area.
"We have no doubt that this agreement has already made a major difference in providing a solution for many South Africans, but at the same time, we realise there are underlying problems in the affordable housing sector that must be addressed before the situation is normalised," said Von Zeuner.
"There is a pressing need for further skills and capacity building for people working in this sector and a stipulation of the contract was that 25% of the subsidised benefit will be used for this purpose.
"This process is also far advanced and through this fund Absa has already trained 200 black estate agents and are currently funding their mentorship to foster a successful career in the housing market. This innovative approach will continue to significantly build capacity and skills in the low-income housing sector.
"We have also started a training programme for 500 senior and middle managers in public sector town-planning, engineering and housing departments across the country. This can only be good for the industry and the home-buyer," he added.
Over and above this project Absa and AFD in collaboration with various other parties are also conducting an international housing innovation competition to explore creativity and innovation in housing construction together with energy efficiency. The competition kicked off in Wellington (Drakenstein Municipality), Western Cape in March 2009. The construction phase was completed and 32 houses were handed to beneficiaries. The final process of identifying the winners among the eighteen local and international finalists is in its final stages. – I-Net Bridge
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