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NHFC’s
T
he NHFC is ably
chaired by Professor Michael
Katz. His extensive experience
in corporate and commercial law,
takeovers and acquisitions, and
empowerment ventures spans over
40 years.
He has guided, shaped and con-
tributed to the NHFC’s success in
order to meet government’s housing
needs and the Minister of Human
Settlements’ mandate.
The NHFC has proved its worth.
Each new Minister has endorsed the
hierarchy and continued toworkwith
those appointed by Joe Slovo, first
Minister of Housing in the new de-
mocracy and Eric Molobi, the NHFC’s
first Chairperson.
Q
: As Chairperson of the NHFC
what were the challenges in
overseeing government’s key
development finance institution?
A
: From day one, I knew that the role
of the NHFC as a Development Fi-
nance Institution (DFI) would evolve
and be reviewed, as it remains an
important and relevant vehicle to
addressmarket failure in the segment
of the market it served (R1 500 to
R 15 000). It had to undertake greater
risk to nurture and develop the newly
targeted housing market. This also
had to be done on a self-sustaining
basis, and be complementary, that
is ‘crowd in the private sector’, rather
than being competitive.
Q
: Did you work with Eric Molobi
before taking over the Chair from the
iconic housing innovator?
A
: Yes I did. We were both appointed
in 1996, byMinister Joe Slovo, the first
Minister of Housing after 1994.
Q
: What are the highlights looking
back over NHFC’s history?
A
: The NHFC was the only housing
DFI setup on a self-sustaining basis
to serve both urban and rural markets
on a national basis.
The corporation piloted the sec-
ondary home loan process to create
significant housing opportunities,
through Gateway Home Loans, a
wholly-owned subsidiary. It pio-
neered and stabilised the financing
of Social Rental housing, and helped
the development of this sector in
South Africa.
The state-owned entity became
the largest inner city affordable rental
financier, either directly or through
its associate company, the Trust for
Urban Housing Finance (TUHF).
One notable milestone includes
successfully piloting the employee
assisted housing scheme in the min-
ing sector with Implats. This led to
the delivery of 2 000 units through
Home Front. Funding for private
and social rental housing increased
due to partnerships with multilat-
eral agencies such as the French
development agency (AFD) and the
Money makes the world go round. Pouring over
financials, profits, losses and interest rate cycles and
working with it to create an effective, sustainable
development finance institution,
are things that the National Housing
Finance Corporation, Chair, CEO and
Board members, do regularly.
Michael Katz
8