The EEPF Programme was initiated as an intervention
for the affordable housing market. Black property
entrepreneurs have to date experienced a myriad
number of constraints in entering this market. “The
partnership provides a funding solution to bridge the
capital gap experienced by these property entrepreneurs,”
said GPF CEO, Kutoane Kutoane. He adds that the global
financial woes have unabatedly continued to pound on the
confidence of the banks to increase their quantum of
funding in the low end of the housing market, as well as
continued to frustrate their programmes.
says, “We have shown great resilience and innovative
design capabilities in our funding models.
In its efforts to promote the sustainable entry of BEE
participants in ownership of medium density property in
the inner cities, the NHFC has partnered with GPF to enable
the radical transformation of the affordable rental property
market, said Samson Moraba, CEO of the NHFC.
These participants are selected through a public call and
vigorous selection process on an annual basis says GPF’s
Chief Investment Officer, Boni Muvevi. He further stated
that this partnership will ensure that EEPF projects would
have up to 95% project funding available.
The GPF mandate has evolved over the years in line with the evolving provincial government housing objectives. Thus, GPF have extended their funding facilitation reach to cover the wider affordable rental housing market. It is estimated that 25% of the households in South Africa has no access to housing due to affordability challenges.
These would be households that earn above the government housing subsidy threshold while at the same time not qualifying for bank mortgages due to the perceived high risk and low credit rating. The assumption would be that the percentage could be much higher in Gauteng.
GPF launched EEPF in 2010. After a public proposal call was made, prospective entrepreneurs are short-listed and put through a rigorous induction programme that covers aspects such as property, facilities and resources management. Once a project is approved, a dedicated GPF programme manager will be available to assist with any challenges. The first proposal call yielded 11 successful
participants, of whom 8 have secured projects after their proposals were approved.