Human Settlements Minister Thembi Simelane has identified innovation in housing finance, integrated human settlements, and stronger partnerships as three key priorities for the National Housing Finance Corporation (NHFC) as it enters the next phase of South Africa’s housing journey.
Delivering a keynote address at the NHFC’s 30th anniversary summit in Boksburg, Gauteng, on Friday, Simelane said the corporation has a critical role to play in accelerating access to affordable housing, amid continued demand and economic pressures facing households.
“In the context of the strategic focus of the entity, we posit that the NHFC's role in the next phase of our housing journey is critical,” Simelane said.
On innovation in housing finance, the Minister said the transition of the NHFC towards a Human Settlements Development Bank presents an opportunity for the institution to achieve greater autonomy and scale.
Simelane stressed the need for the transition to be completed efficiently and for the new institution to be equipped to operate with the agility required by the housing market.
On the second priority, the development of integrated and sustainable human settlements, Simelane said government must move beyond the delivery of individual houses.
“We must move beyond the delivery of individual houses toward integrated and sustainable human settlements that connect communities to essential services, economic opportunities, and secure tenure,” Simelane said.
She said this approach must include schools, clinics, roads and recreational spaces alongside housing.
On partnerships, Simelane said the NHFC’s success over the past three decades has been built through collaboration with financial institutions, developers, all spheres of government, and communities.
“That partnership must deepen,” the Minister said, stressing that government cannot address the country’s housing challenge alone.
More than R13 billion in housing finance facilitated
The Minister highlighted that the NHFC has facilitated more than R13 billion in housing finance and helped more than 800 000 households access housing opportunities.
Since 2019, more than 32 000 subsidy approvals have been made through the First Home Finance programme, with close to R2 billion disbursed and R10.9 billion in private sector investment leveraged.
“These are not just figures. They represent families who have a place to call home. They represent children growing up in stable environments. They represent the restoration of dignity,” Simelane said.
The Minister also acknowledged the First Home Finance programme, which serves the “gap market”, comprising households earning between R3 501 and R22 000 a month who earn too much to qualify for a fully subsidised house but too little to secure traditional mortgage finance.
She said the programme has been expanded to rural areas, with traditional leaders playing a role in supporting its implementation and driving local development initiatives.
The NHFC’s anniversary coincides with the 30th anniversary of the adoption of the Constitution, with Section 26 recognising the right to adequate housing and requiring the State to take reasonable legislative and other measures, within its available resources, to achieve its progressive realisation.
However, Simelane said the country still faced a significant housing challenge, with the backlog estimated at approximately 2.6 million people in need of housing.
She said rapid urbanisation and economic pressures continue to place enormous pressure on the cities.
“Demand for affordable housing continues to outstrip supply. Economic pressures make it harder for households to enter the property market.
“The question before us is not whether progress has been made. The question is - how do we accelerate that progress?” the Minister said.
The Minister commended the NHFC’s 30th anniversary initiatives, including its Scholarship Fund, 30 Stories campaign and digital archive, saying these demonstrate the institution’s commitment to preserving its legacy while investing in the next generation of housing and built-environment professionals.
“We celebrate what is possible when government creates the enabling conditions for partnership and investment to flourish.”
She also thanked the NHFC board, management and staff, as well as private-sector and civil-society partners, for their contribution to expanding access to housing finance.
“Government cannot do it alone. We remain committed to the translation of Section 26(1) and Section 26(2) of the Constitution, especially the promise of adequate housing for all, to make it a reality. Together, let us continue building a nation, one home at a time,” Simelane said. – SAnews.gov.za
