PUBLIC HEARINGS: BUDGET VOTE 30 24 March 2010 Presented to : PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS by: MR. JJ Fakazi –Acting CEO MR. H Potgieter - CFO RURAL HOUSING LOAN FUND Outline RHLF Mandate Vision Mission Policy Context: BNG & Other Policy Priorities Provincial Involvement
RHLF is a world-class rural housing social venture capital fund that creates new financial arrangements and opportunities for rural families to improve their housing, economic and living environments.
To empower people in rural areas to maximise their housing choices and improve their living conditions with access to:
Financial Services Market:
Repeated access to credit for incremental housing and fixed home improvement
for the rural working poor
2. Entry level credit – building credit history
3. RHLF scales-up using its venture capital investments to leverage additional debt funding from financial sector (Clients reaching maximum RHLF exposure)
Existing core financing opportunity for RHLF business
Enable borrowers to improve quality of their housing asset: especially during post occupancy (Subsidy houses)—progressive build method
Provision of loans for improving traditional houses in communal land
Support indigenous housing (maximizing housing choices)
Enable rural residents to drive their own building process
YTD FEB 2010 = 32,343 vs. total year budget of 35,000
Internal factors affecting RHLF:
R49,5 million in 2011/2012
R51,9 million in 2012/2013
Statement of Financial Position
Statement of Financial Performance
Cash Flow Statement
Determination of financial materiality for 2010
Disbursements made in terms of approved client facilities and approved equity investments shall be excluded from the materiality framework as these transactions are within the normal course of business of the Company.
Determination of qualitative materiality
Qualitative materiality refers to those transactions where by their very nature indicates that management should apply their minds with additional care.
The RHLF management shall consider all transactions, which contravene any regulation, law or statute as being material despite the size of the transaction.