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Foundation's Project of the Year
Award and many accolades.
Extending NHFC’s reach through
partnerships and joint ventures such
as inner city financing through the
Trust for Urban Housing Finance
(TUHF), facilitated through Hous-
ing Investment Partners (HIP), has
increased NHFC’s national reach
and driven social change and a 2009
partnership and home ownership,
respectively. NHFC’s stake in TUHF
has reaped dividends for the state-
owned DFI and has enabled TUHF to
finance over R4 billion in inner city
residential rental properties, finance
360 entrepreneurs and delivered
34 500 units.
Strategic Partnerships
In 2009, the NHFC forged Strategic
Partnerships with Old Mutual Capi-
tal Holdings. The following year, the
French development agency (AFD),
signed a 20million Euros funding deal
withNHFC and a year later, concluded
a 30million Euros deal with European
Investment Bank, (EIB).
In 2013, the NHFC partnered with
International Housing Solutions (IHS)
to leverage R10 billion worth of pri-
vate sector funding to deliver 43 000
housing units, and create 158 000 jobs
that will improve the quality of life of
163 400 beneficiaries.
Moraba is proud that for more
than 15 years, the NHFC has been a
self-sustaining state-owned entity.
“It is rewarding to consider the
evolution of the organisation over
time in the market changes, the gov-
ernment imperatives, and the way in
which we do things today is totally
different,” says Moraba.
He cites examples of creating
mortgage backed securities based
on a similar product by American
housing giant, Fannie Mae, and pi-
loting a second. The pilot was not a
success for NHFC but demonstrated
boldness in responding to the then
market needs and being innovative
by trying something that had never
been done before.
The Minister of Human Settle-
ments announced that government
was introducing a Mortgage Default
Insurance (MDI) and that this would
be implemented by the NHFC. The
much heralded default insurance
would hopefully unlock sustained
banking mortgage financing in the
affordable housing segment of the
market. The MDI aimed at enhancing
and expanding housing finance and
addressing the constant challenge of
affordability and accessibility for the
Gap market. “The pilot project feasi-
bility went well but as it was a new
intervention in amortgage market, it
required greater participation. Since
MDI was neither abanking instrument
nor insurance, but a blend of both
mortgage and insurance, the banks
were concerned about the financial
discipline while the insurance com-
panies looked at it from an entirely
different perspective. We learned
fromother developing countries that
a product like this can take between
eight and ten years to develop,” says
Moraba.
He adds, “The lesson learnt was
not to focus too much, as we did, on
the product as a game changer and
market intervention, but more on
other aspects, like ownership, techni-
cal and implementation expertise on
such an innovative product.”
Moraba explains, “The Finance
Linked Individual SubsidyProgramme
(FLISP) is another product designed
to yield dividends in the affordable
housing sector by using subsidies
to enable the Gap market income
earners access homes. The product
offers householders earning between
R3 500 and R15 000 the opportunity
to receive a government subsidy in
the affordable housing market and
bridge the gap between what the
home owner qualifies for in terms of
a bond and government provides the
shortfall.”
Moraba’s enthusiasm is infectious.
He says: “Firstly, I love what I do.
Secondly, the challenge of keep-
ing NHFC going, relevant and
growing in the delivery of its man-
date, excites me. As a resource-
ful and courageous person, I like
the way we have, over the years
in the life of NHFC, thought differ-
ently about strategy, innovation and
product offerings, in response
to changes in the housing and
housing finance markets and in
the shareholder priorities. At the
same time, I have the humility to
accept that some of our risk-tak-
ing initiatives have not yielded the
desired impact, but have instead
been stepping stones and insights
Continued
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