OVERVIEW
Construction and property Infrastructure and state housing are potential markets for builders.
SECTOR INSIGHTS A provincial theatre is in the planning stages.
T
he Risima Housing and Finance Corporation, a division of the Limpopo Development Agency (LEDA), is helping citizens of the province to become homeowners. Since 2014, Risima has assisted 1 037 beneficiaries with loans of up to R1.5-million. The gap market – people who earn too much to qualify for social (RDP) housing but don’t earn enough to be granted bonds – is a hot topic. Opportunities exist, but the risk profile is different. A new association caters for this subsector, the South African Affordable Residential Developers Association (SAARDA). Risima has introduced the Finance Linked Individual Subsidy Programme, for those earning between R3 501 and R15 000 per month. Risima and the Department of Cooperative Governance, Human Settlement and Traditional Affairs (COGHSTA) distribute grants to cover a deposit or to make up the shortfall between an asking price and what the applicant can afford. A non-mortgaged financial product assists government employees to get a foot on the property ladder. Risima is also exploring cooperation with mining houses such as Exxaro, Amplats and Northam at Thabazimbi. The Provincial Government of Limpopo has built more than 320 000 houses since 1994. A budget of R3.9-billion has been assigned by National Treasury towards the Limpopo Academic Hospital. Clinics are also
ONLINE RESOURCES Black Business Council in Built Environment: www.bbcbe.org Construction Industry Development Board: www.cidb.org.za South African Property Owners Association: www.sapoa.org.za
LIMPOPO BUSINESS 2019/20
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being built, providing more work opportunities in the construction sector. A start has been made on a provincial theatre, with R15-million allocated to allow planning for the project to get underway. A large development is under way in Thohoyandou. A 27ha site is being converted into Thavhani City which will include an office park, automotive-related businesses, private healthcare, a library, an information centre and a sports stadium. Thavhani Mall (pictured) is already functioning. Its anchor retail tenants include Woolworths, Edgars, Pick n Pay and SuperSpar. The partners in the R1-billion project are Thavhani Property Investments, Vukile Property Fund and Flanagan & Gerard Property Development. The Enterprise Development and Finance Division of LEDA not only offers loans to businesses in the construction and property sector but runs specialised training in vocational skills such as bricklaying, plastering, carpentry, plumbing, electrical and welding.
