COMMUNITIES | INFRASTRUCTURE | DEVELOPMENT September 2014 // Issue: 48
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SEPTEMBER 2014
ISSUE: 48
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Trademax Publications SA Affordable Housing Infrastructure & Development Tel: 0861 727 663 Cell: 082 266 6976 Fax: 0866 991 346 www.trademax.co.za Postnet Suite 241 Private Bag X103 N1 City 7463
CONTENTS
PUBLISHER: Billy Perrin billy@trademax.co.za 0861 727 663
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22
30
2
EDITOR’S COMMENT
4
AWARDS
8
COVER STORY
EDITOR: Jennifer Rees editor@trademax.co.za 0861 727 663
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NEWS
17
FINANCE - ADVERTORIAL
ADVERTISING SALES:
18
BRICKS & PAVING
kylin@trademax.co.za
22
FINANCE & INVESTMENT
0861 727 663
24
CEMENT & CONCRETE
LAYOUT & DESIGN:
26
INDUSTRY INSIGHT
28
CEMENT & CONCRETE
30
FINANCE & INVESTMENT
SUBSCRIPTIONS:
32
WINDOWS & DOORS
belinda@trademax.co.za
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COMPANY PROFILE
36
CEMENT & CONCRETE
38
APPOINTMENT
Kylin Perrin
Craig Patterson craig@trademax.co.za
Belinda Thwesha 021 595 3422 DISCLAIMER The views expressed herein are not necessarily those of Trademax Publications. Although we have done our best to ensure the accuracy of our content, neither Trademax Publications nor SA Affordable Housing magazine will be held liable for any views expressed or
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information disseminated in this issue.
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ED’S NOTE
Creating wealth Oftentimes, when we think of our current and on-going housing backlog and of the homes of which there is such a severe shortage, we seldom make the connection to a lucrative, sustainable investment, or personal wealth creation.
T
he notion of affordable housing as a wealth creator is an important one, but it doesn’t always make the list of primary human imperatives, like shelter, sanitation, and infrastructure. And it should, because it has knock-on effects that are far reaching. The various players that make up and service the affordable housing market, as we feature in this issue, come together right from planning phase, to end-user finance to make this type of investment one that creates wealth, not only for these players, but for the homeowner who now has a substantial asset upon which to build. On the cover is the Southern African Affordable Residential Developers Association (SAARDA), whose cover story details the fruits of their labour over the past few months. SAARDA has been working hard at building relationships with entities, like the NHBRC and Eskom to ensure prompt turnaround times on delivery.
We also feature Mossel Bay Municipality’s innovative Wolwedans project that sought to “integrate the informal settlements with the formal Wolwedans and adjacent Green Haven areas through a combination of incremental in situ upgrading and relocation of the households to newly developed ‘greenfield’ sites.” It is organisations and projects such as these that are imperative, not only in the immediate creation of wealth, but in offering long-lasting, long-term and sustainable solutions for financial advancement and prosperity for South Africans in the form of well-considered, good quality affordable housing. Welcome to the September issue of the SA Affordable Housing magazine. Enjoy the read. Jen
UPCOMING EVENTS INTERBUILD AFRICA
4TH AFFORDABLE HOUSING SUMMIT
View www.interbuild.co.za for more info
View www.affordablehousingsa.com for more info
SAHF INTERNATIONAL HOUSING CONFERENCE, EXHIBITION & HOUSING AWARDS 28 SEPTEMBER - 1 OCTOBER 2014 | CAPE TOWN
SACPCMP: 2ND ANNUAL PROJECT AND CONSTRUCTION MANAGEMENT PROFESSIONS CONFERENCE 20-22 OCTOBER 2014 | MIDRAND
20-23 AUGUST 2014 | JOHANNESBURG
26-28 AUGUST 2014 | JOHANNESBURG
View www.sahf.org.za for more info
View www.events.sacpcmp.org.za for more info
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MAKING
FUNDING FOR THE DEVELOPMENT OF AFFORDABLE HOUSING HAPPEN
Nedbank Corporate Property Finance transforms development opportunities into quality communities. At Nedbank Corporate Property Finance we believe that home ownership and affordable housing are critical drivers of growth and transformation in society and the economy. That’s why we are committed to providing dynamic funding for key affordable housing developers. In this way we can enable the construction of affordable, quality housing for as many South Africans as possible. For more information call 011 295 6647.
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Nedbank Limited Reg No 1951/000009/06. Authorised financial services and registered credit provider (NCRCP16).
AWARDS
George and Mossel Bay
receive Govan Mbeki Awards Named as a tribute to the late Govan Mbeki and the important role he played in nation building, the Govan Mbeki Awards aim to promote a culture of excellence among all stakeholders involved in delivering quality human settlements through stimulating healthy competition among municipalities and provinces. 4
SEPTEMBER 2014
AWARDS
Wolwedans
T
he nationally driven program also recognizes the contributions by all role players in the housing value chain, such as building contractors, consultancy services and building material suppliers. ‘20 Years of Freedom’ was the theme of the recent Western Cape Government’s Govan Mbeki Awards gala function. Global engineering management and specialist technical service company, Aurecon, was proud to see two of its clients receive prestigious provincial awards in the Best Informal Settlements Upgrading Project (UISP) category. The winning project was the George Municipality’s Thembalethu Upgrading of Informal Settlements Project (UISP), closely followed in second position by the Wolwedans Informal Settlements development project undertaken by the Mossel Bay Municipality.
THEMBALETHU UISP This is a seven-year program of George Municipality. The scope of the Thembalethu project covers the incremental development of 4 350 formal residential sites with full, permanent municipal services and eventually top structures on 10 land parcels, for identified households from the current 22 informal settlement areas. Aurecon is as Implementing Agent responsible for all the multidisciplinary professional services required for the incremental upgrading and extension of the required bulk and connection services infrastructure, as well as the development of the fully serviced sites and eventually the construction of the top structures for qualifying beneficiaries. The remit also includes the facilitation of all community-based participatory planning engagement, as well as the management of the relocation processes with minimal inconvenience to the beneficiary households.
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AWARDS
Wolwedans
WOLWEDANS HUMAN SETTLEMENTS DEVELOPMENT PROJECT Mossel Bay Municipality was challenged by the lack of suitable housing development sites available to address the dire living conditions of informal settlements in the Great Brak River area. The innovative solution arrived at by the project team was to integrate the informal settlements with the formal Wolwedans and adjacent Green Haven areas through a combination of incremental in situ upgrading and relocation of the households to newly developed ‘greenfield’ sites representing a total development of 675 housing opportunities. The steep slopes on some of the sites required skilled engineering solutions for house foundations and infrastructure layout. Aurecon’s role in this success story was that of project manager and consulting engineer (including civil and structural). This project was also the recipient of a Special Merit Award from the Southern African Housing Foundation in 2013 “in recognition of the project’s holistic and integrated upgrading of the informal settlements, the provision of security of tenure, a healthy and secure living environment, and community empowerment through the promotion of social and economic integration” (judges).
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The Thembalethu traffic circle.
“The success of these challenging human settlement upliftment projects reflects the impressive commitment and determination of the municipalities involved,” comments Aurecon’s Francois Theron, Project Leader, Land Development Services. “At the Awards ceremony, both clients expressed their deep appreciation for the sustained, quality services rendered by Aurecon.”
COVER STORY
Development by Codevco, JFS (Pty) Ltd., and Basil Read in Cosmo City.
SAARDA drives change SAARDA continues to serve the affordable housing network by engaging local authorities on matters that affect the industry
I
n the February 2014 issue of SA Affordable Housing, SAARDA reported on the industry challenges that would be addressed this year. In this edition, SAARDA is pleased to provide feedback on some of these points as part of its continuous work and commitment to serve the affordable housing network. SAARDA recognizes that progress on these challenges will only be achieved by continuing to drive these initiatives.
CITY OF JOHANNESBURG METROPOLITAN MUNICIPALITY SAARDA secured several meetings with Joburg City Council during 2014 to address concerns raised by their members pertaining to the approval and implementation of affordable housing projects. The following two major concerns were highlighted by SAARDA: the increase of bulk contributions, and the delays experienced with valuations and clearance applications. Issues raised were predominately around delivery time, as this directly leads to additional holding costs that unnecessarily result in an increased retail price offered to the market. The affordable housing market is very price sensitive and in order to deliver a product that will be affordable and acceptable to the market is a major challenge.
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Adding to this tension is not only the price increases with which developers are bombarded from suppliers, but also the bulk contributions presented by local authorities. Discussions between SAARDA and Joburg Council’s Legal and Legal Administration Departments were aimed at finding synergy between parties and to question the 100% increase (on average) towards bulk contributions now imposed in the 2014/2015 financial year by the council without any forewarning. These increases have a tremendous impact on the future costing of stands, which ultimately impacts on the selling price of a home. These costs will inevitably be carried by the buyer, which will make these affordable housing projects unfeasible. The council acknowledged the concerns raised by SAARDA and requested that SAARDA present a detailed report that outlines special discount tariffs that can be imposed on the affordable housing sector. This report is currently being reviewed by the council and SAARDA hopes that a special tariff will soon be agreed upon through the Council.
COVER STORY
Sharon Park Lifestyle Estate, Springs. Developer: Hlala Kamnandi.
NHBRC AND FLISP SAARDA engages the NHBRC on a regular basis and in June this year, members had the opportunity to meet and raise issues with the Provincial Manager, Ms Nthabiseng Mehale, during a formal workshop session. The aim was to understand the day-to-day operations within the NHBRC and to address problems that developers experience regarding inspectors, enrolment processes, non-compliance and lodged complaints.
Sharon Park Lifestyle Estate, Springs. Developer: Hlala Kamnandi.
The NHBRC committed to streamlining operations and to opening direct lines of communication with developers by assigning key personnel to address and resolve queries. Turnaround times on enrolment application have been formalized and they envisage to bring this back to 24 hours for ordinary applications and up to 15 days for applications with exceptions, i.e. on dolomite areas. Furthermore, special task groups will be identified by Ms Mehale when required to address detailed matters, and SAARDA members will be invited to participate. Meetings with the NHBRC will be held every second month to enable SAARDA to continue driving these processes and to ensure delivery on commitments.
Sondela Village (Daggafontein), by Caliber Property Developers.
Rosslyn Ext 44. Photo provided by Johan Cronje from Gaucon Electrical Consulting Engineers.
Secondly, SAARDA members have also identified the restraints currently surrounding FLISP, especially the cap of R300 000 on the selling price of a unit in order for a client to participate in the subsidy program. SAARDA requested that income levels and selling price thresholds be aligned with current market rates and that these numbers must be reviewed annually. Currently, the average selling price of an entry-level 40-45m² property is between R350 000 to R400 000, and unsubsidised developments cannot sustain properties below R300 000 as per the current criteria. In order to reduce the housing backlog of 2.3 million families as raised by Minister of Human Settlements, Honourable Lindiwe Sisulu, the FLISP initiative needs to be a feasible programme for buyers as well as developers. SAARDA is positive that the FLISP benchmarks will be reviewed soon.
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COVER STORY
ESKOM SAARDA engaged Eskom in February this year to discuss the development of a formal structure that will address mutual concerns in the future, as well as a process to assist in resolving difficulties experienced during projects. Development timelines can be drastically affected by the slow processing of necessary documentation. The Township application process takes approximately 36 months, to obtain an Eskom Feasibility quote approximately four months, and to obtain an Eskom Budget Quote can take up to 18 months.
Windmill Park. Developer: Kiron Properties.
Mr Paul Segwe (Eskom Gauteng Planning Manager) confirmed that Eskom is working on a three-year roll-out plan and that their plans can be amended if they are timeously informed of locations for future developments. SAARDA undertook to assist Eskom in identifying such potential locations. This ensures that Eskom will be on the front foot and be able to anticipate where and when applications are likely to be submitted. Windmill Park. Developer: Kiron Properties. Eskom confirmed that the Feasibility Quote (FQ) process will be waived for specific projects, i.e where the developer confirms that the project is ‘a go-ahead’ (all other disciplines beyond the feasibility phase). This request must accompany the application and be brought to the attention of management (at present, Mr Paul Segwe). SAARDA and Eskom will engage again at a later stage to discuss this procedure in further detail. SAARDA is concerned about the clarity of design parameters as part of the FQ, as well as the method of reticulation and material standards. Presently, this is only finalized at the time of the TEF presentation and even the final design review committee. Eskom informed SAARDA that they are willing to formalize the design parameters as well as the material and equipment standards as far as it is practical, though this must be requested when the Feasibility Quote is accepted – a great advantage to minimize risk for developers. SAARDA will engage with Eskom on this item in the future, appreciating that it may not be easy and it may be project specific, but that it will be a great step forward.
Windmill Park. Developer: Kiron Properties. The fact that the budget quotes may be accelerated (omitting the FQ) and standards may be pre-fixed ahead of the budget quote is very positive.
SAARDA SOCIAL
Eskom proposed that a meeting be scheduled every three months. Mr Pravind Orrie (Senior Manager Asset Creation at Eskom, Gauteng) will involve Eskom’s Sales & Customer Service Department in the next meeting. The Section 82 process will also be addressed at future meetings.
On a social note, SAARDA would like to express sincere appreciation to everyone that made time in their busy work schedules to participate in the golf days. Also, many thanks to our generous sponsors that made the event such a resounding success. Congratulations to Dr Alf Levin and his team from Township Realtors for winning the most recent SAARDA Golf Challenge.
SAARDA considers the meetings with Eskom, who had a positive attitude towards the association, as very successful.
This is a great platform for networking between members and associates and SAARDA looks forward to hosting many more such events in the future.
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South African Affordable Residential Developers Association
Dedicated to providing affordable housing to the people of South Africa and to improving and assisting in the delivery of affordable housing in the residential sector for all its members, as well as promoting the common interests of affordable residential developers in South Africa.
CONTACT: Tel: (011) 607-8000 Fax: (086) 602-2481 Email: info@saarda.co.za Web: www.saarda.co.za
COVER STORY
ABOUT SAARDA SAARDA has a single goal to be the voice and support body for the stakeholders in the affordable housing network, who ultimately provide not only environments for communities to thrive, but also stimulate local economy and social growth. SAARDA seeks to pursue the interest of its members in a number of ways: Protea Glen Ext. 22. Developer: Kiron Properties. • To act as a bargaining forum for its members when dealing with key industry players, such as financiers, building material suppliers and the government. • To engage with banks and financial institutions in promoting greater lending (both end-user and developer) to the affordable housing markets. • To promote greater innovation in: • End-user financing in the market so as to broaden the base of financed households. • Developer financing. • The way government engages with the affordable housing sector. • Producing affordable housing products among SAARDA members. • To draw greater attention from government on issues of affordable housing through advocating for: • Land development laws that are friendlier to affordable housing development. • Greater land release by local government and other institutions for affordable housing. • The creation of greater infrastructure capacity at local government level for affordable housing purposes. • Faster and more efficient adjudication and delivery of applications for land development from statutory authorities at provincial and local government level. • To monitor and disseminate information on building and construction sectors obtained through authoritative research beneficial to members, and that promotes better understanding of the affordable housing market among members and other players within the market. • To create partnerships and co-operate with other industry players in creating awareness of affordable housing products delivered by members among recipients of affordable housing, on housing ownership responsibility, and on the strategic importance of affordable housing to the South African economy.
Protea Glen. Photo provided by Faith Mbatha from SJL Building Construction.
Protea Glen Ext. 22. Developer: Kiron Properties.
FOR MORE INFORMATION, CONTACT: (t) 011 607 8013 (e) info@saarda.co.za (w) www.saarda.co.za
Overall winners of the SAARDA Golf day: Cassie Pelser (Westonaria Municipality), Manie Engelbrecht (City of JHB), Alf Levin (Township Realtors), Tom Gillham (Dimension Home Loans & SAARDA Golf Day organizer), Denis Emit (Gautrans), Harry Gey van Pittius (MD Kiron & SAARDA Chairman).
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SEPTEMBER 2014
A home you can be proud of
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NEWS
Absa launches MyHome: Repositions affordable housing offering
Absa has launched its ‘MyHome’ proposition which seeks to lower the barriers to entry for customers in the affordable housing segment. “In our endeavour to be the ‘go-to’ home loans bank in South Africa, we have taken a strategic decision to reposition our affordable housing proposition to be known as MyHome. It offers qualifying customers a solution that will address their housing needs – providing them with access to finance and enabling them to own their first home,” says Carel Grönum, managing executive of Absa Home Loans. Grönum adds: “South Africa has 53 million people, 15 million households and only 6 million residential properties. Absa sees its role as a partner with the public sector in seeking to address this critical problem, through making access to affordable housing more readily available.”
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In addition, research also shows that there is a housing backlog of between 2.1m and 2.5m. It is also interesting to note that there is a selected panel of Affordable Housing developers who build around 20 000 new houses annually. The housing shortfall is provided by informal, backyard and other types of housing. “As a responsible corporate it is vital that we join hands with government in addressing the need to put people in houses; it’s a basic human need. There is nothing that provides more basic pride than owning one’s own home.”
NEWS
The tough economic climate dictates that as banks we continuously review and consider more innovative ways to help our customers achieve their ambitions in the right way. Our responsibility is to present customers with workable financial solutions that enable them realize their dreams of owning their own homes. Absa’s MyHome book is currently R9.2b with over 60 000 customers, and the Bank plans to grow the book to R15.4b by 2017. The MyHome offering is targeted at customers who earn an income of less than or equal to R18 600.00 per month (single and/or joint). As Absa we are continuously investigating solutions on how best to address the needs of this segment, which is why we are repositioning the ‘MyHome’ proposition which seeks to lower the barriers to entry for customers in the affordable housing segment. The new enhanced proposition introduces revised qualifying rules for affordable housing customers, making it easier for those who earn less than R18 600 to access home loan finance. As part of the repositioning of the MyHome proposition, Absa will also be offering its customers a 30% discount on attorney bond costs as well 30% discounts on bank initiation fees; these discounts will be available up to 31 December 2014 on approved applications. Grönum explains that buying a property is the single biggest and most important investment which most people will make in their lifetimes; however, many customers in the lower end of the housing market are not properly educated regarding their investments, largely as a result of South Africa’s historical legacy on property ownership, access to finance and education. To address this challenge, Absa has designed a First Time Home Buyer (FTHB) training programme funded by the French Development Agency, which aims to educate 17 000 first-time home buyers by the end of December 2014. Research conducted by Absa suggests that consumers do however prefer to be educated prior to buying a home. It is with this in mind that Absa created its FTHB training programme. The programme aims to inform customers about all aspects regarding the process of buying and owning a home as well as sustainable home ownership. Grönum concludes, “Private sector and Government have to join forces to fast-track housing delivery and ensure there is more affordable housing stock in the market. Absa Home Loans is committed to play a pivotal role in addressing the housing challenges faced by many South Africans.”
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FINANCE - ADVERTORIAL
Access to rural housing finance Rural Housing Loan Fund - the muscle behind incremental housing finance - is taking an aggressive and proactive approach to broadening and deepening access to housing finance in the most rural of areas - building homes and building better lives.
R
ural Housing Loan Fund (RHLF) is a South African Government-owned entity established in 1996 by the National Government.
The mandate of RHLF is to facilitate access to incremental housing finance for low-income earners in order to enable them to improve their housing conditions in rural areas and small towns of South Africa. RHLF operates as a wholesale finance institution and achieves its mandate through retail financial intermediaries who access funds from RHLF and on-lend them to individual borrowers. RHLF’s intermediaries who are commercial lenders are registered with National Credit Regulator and on-lend to the general public in the target market. The intermediaries, who are mainly community-based organisations, operate along stokvel or co-operative principles, access funds from RHLF and on-lend to their members. Using both types of intermediaries, RHLF is able to have a wider geographical reach of its target market. RHLF’s core business in line with its mandate is to support incremental housing. Borrowers access loans repeatedly from intermediaries, thus being able to improve their homes progressively. RHLF loans can be used for the following mandated purposes: • Build a house, in most cases after adding loan to own savings. • Improve the quality of their home. • Extend their existing homes. • Connect to services, such as electricity and water. • Improve sanitation conditions. • Purchase residential land for building a home. • To fence their homes. Since its inception in 1996 to the end of March 2014, RHLF has built a long track record of delivering incremental housing loans to low income earners: • A cumulative amount of just over R1.2 billion has been disbursed nationally for incremental housing as at end of March 2014. • 415 134 incremental housing finance loans granted as at end of March 2014.
FOR MORE INFORMATION CONTACT RHLF: (t) 011 621 2500 (f) 011 621 2520 (e) mmothobi@rhlf.co.za (w) www.rhlf.co.za Postal Address: PO Box 645 Bruma 2026
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BRICKS & PAVING
The selected facebrick was used as it was the closest match to the original red bricks used in the other buildings on the grounds.
A modern tribute At the Afrikaans Boys' High School in Pretoria, a public high school for boys situated in the city affably known as Affies, a new ground level canteen and upstairs computer room were required. Architect, Riaan Visser from +27 Architects, was drafted in to create a design which would be a modern appendage to the school, but still one which would pay homage to the historical buildings on site.
A
ffies’ founding on January 28, 1920 marked the establishment of the first purely Afrikaans-medium school in South Africa. The school, with 44 children and three teachers was housed in the home of General Piet Joubert at 218 Visagie Street, Central Pretoria. By 1927, the school had grown and new premises were required. The school was therefore moved eastward to the current premises of the Afrikaanse Hoër Meisieskool, Affies’ sisterschool. At the end of 1927, the school took over the Hogere Oosteindschool, but by 1929 this building had also run out of space and the decision was made to split the boys and girls into separate schools, thus creating the first separate Afrikaans boys' and girls' schools in South Africa.
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These two schools are now situated across from each other in Lynnwood Road. The school has an astro-turf field, mini astro, state-of-theart fully stocked gymnasium and an impressive library. The school also has three boarding-houses, the largest being House Frank Le Roux (named after the first headmaster). Affies has produced many Springboks (Louis Schmidt, Wynand Olivier, Fourie du Preez and Pierre Spies) as well as Proteas AB de Villiers, Francois du Plessis and Jacques Rudolph). Today a total of 1 450 boys attend the school which caters for Grades 8-12.
BRICKS & PAVING
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The brickwork is laid in a header bond every fifth layer to match the original building.
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The new extension, on what was once a dusty open playground, can be seen as a mix of modern and classical design, so although the original buildings on the grounds are very traditional, the new addition represents the current school-going generation. A stimulating cafeteria and a first floor learning centre make up the doublestorey centre, named 1920 in honour of the year the school was founded. The cafeteria, where the boys eat during break, is a stylish, modern area with a television, photographs of the colourful history of the school and a black polished concrete floor interspersed with reclaimed parquet floor panels running at angles. The light fittings, specially made by a local artisan with a 1920s look, hang from scaffolding planks over the serving area, while two long tables, made from Oregan pine, fit in perfectly with the style of the building. Apart from being a practical space for dining, Visser created the area to be multifunctional and practical space for its learners, and it often doubles as a function area after hours for choir practice, socials and sports events. Upstairs you find a state-of-the-art learning centre, which acts as the reading and study area with an integrated library and computer. After hours, the building is used to host both internal and external events. The back of the building which faces the parking lot is notable for a custom-designed concrete seating area, which the children use as a waiting zone after school.
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BRICKS & PAVING
The new extension can be seen as a mix of modern and classical design, which represents the current school-going generation.
THE USE OF BRICK While the new structure maintains elements of the 94-year-old buildings around it, Visser wanted to ensure that it still had a modern twist: “When I started working on the design I took inspiration from the English brick style in the original building, and also followed the initial design with the gables of the new centre.” Visser says that it isn’t often that facebrick is used in his projects as it is perceived as an expensive material. “Yet the long-term low maintenance issues offset any additional cost,” he notes. Contractor, Hansie du Toit from Van Rensburg Building Contractors was awarded the tender for the job primarily because the company had previously demonstrated that they could lay facebricks. “They weren’t the cheapest, but we had seen their facebrick work and knew that we could rely on them to do the job right first time,” says Visser. “It isn’t easy to lay facebricks well, and the English bond work added to the complication.” The selected facebrick from Corobrik was used as it was the closest match to the original red bricks used in the other buildings on the ground, and it complements the red corrugated iron roof.
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Galvanised aluminium sun screens were positioned to shade the dark aluminium windows of the cafeteria in summer while planter boxes soften the area. The boundary walls were constructed with pillars and wrought iron in the facebrick, while vertical breaks in the wall offer openings to add interest and glimpses of the outside through the walls. “I was delighted with the quality of the work that the contractor delivered and am very proud of what we delivered,” he says. Current principal of Affies, Pierre Edwards, said in a previous interview that it was important that the building didn’t stand out from the original structures. “The architectural team did a great job in blending it in with what already existed. It’s completely authentic and looks as if it’s been here all along, which is exactly what we wanted.” 1920 does what Visser set out to do with the building – bridge the gap between the old and the new, but also deliver a contemporary, functional building that has its own merits.
FINANCE & INVESTMENT
Nedbank and IHS help drive
affordable housing supply in SA With the demand for affordable housing in South Africa continuing to outstrip supply, there is an increased role for the private sector to play in the supply of well-located affordable housing for both rental and ownership.
A
ccording to Manie Annandale, head of Affordable Housing Development Finance at Nedbank Corporate Property Finance, the growing low and middle income segment in South Africa is creating a robust demand for affordable houses for both ownership and rentals; yet there is simply not enough stock to meet this demand.
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“There is a growing shortage of suitable housing stock, and it is therefore crucial that the private sector plays a role in identifying and supporting developments that deal with this issue to ensure that we are able to house all of our citizens in sustainable living environments.�
FINANCE & INVESTMENT
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He says the Nedbank Affordable Housing Development Finance unit disbursed more than R1bn towards new affordable housing developments across South Africa in 2013, with more than 12 000 new home opportunities created.
Itʼs White Itʼs Green Itʼs Insulation
“It is crucial that we have a well-developed and co-ordinated strategy between all stakeholders that presents viable solutions to the country’s lack of affordable housing, as well as the allocation of developments.” Annandale explains that the strategic imperative for the Nedbank Affordable Housing development finance business remains to ensure that the bank can credibly demonstrate its participation to the Financial Sector Code in a sustainable way. He says to build on this momentum the unit is growing its resources in a measured way to take advantage of the increase in business, which also reflects the increasing demand in South Africa for housing in the lower income sector. “Affordable housing is an absolute necessity in South Africa and Nedbank remains committed to identifying and financing developments that meet its strategic business goals whilst also helping to build a sustainable future for all citizens,” says Annandale. South Africa’s current housing sector, with its stalling delivery and limited access to affordability, is trapped within a complex and nuanced interplay of demand and supply. The country has seen a particular increase in demand for rental stock, something which organisations, such as International Housing Solutions (IHS), aim to address through affordable housing developments. Nedbank recently provided financing of R548 million to acquire 1 423 affordable housing units in five separate developments in Gauteng. A social study by the IHS with the University of Cape Town and Professor Francois Viruly on residential units provided by the IHS reveals the direct and indirect benefits that tenants and owners derive from occupying these homes. Rob Wesselo, Managing Partner at IHS says that the provision of housing goes well beyond the provision of shelter, with the study revealing that quality and well-located housing can have a profound effect on the access that households have on social amenities and overall welfare. He notes the positive impact that development of housing has on job creation. “The housing construction sector is an important employer with one of the highest employment multipliers in South Africa. It is estimated that IHS financing has created more than 50 000 direct and indirect employment opportunities, with 60% of these opportunities for unskilled workers. The management of the housing stock creates 5 000 continuous skilled and unskilled employment opportunities on an annual basis,” he says. “In addition to these benefits, and of value to the affordable housing market, the study showed the importance of providing diversity in the housing segment thus making filtering from one sector to the next possible,” concludes Wesselo.
SEPTEMBER 2014
Insist on EPS Effective Insulation for Walls, Floors and Roofs Expanded Polystyrene, used for thermal and sound insulation in walls, roofs, and floors. Loose beads are used as aggregate in lightweight concrete, plasters and renderings. Also used for underfloor heating systems, drainage boards, permanent formwork, foundations, floatation and prefabricated wall systems. www.epsasa.co.za www.expandedpolystyrene.co.za P. O. Box 7861 | Halfway House | 1685 t: 011 805 5002 | f: 011 805 5033 epsasa@aaamsa.com
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SEPTEMBER 2014
CEMENT & CONCRETE
© r.nial.bradshaw
Readymix to aid delivery Building professionals are being urged to harness the amazing characteristics of modern-day readymix concrete to build better structures and speed-up the delivery of critical infrastructure throughout Southern Africa.
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ew techniques, as well as advances in cement technology and admixtures, have allowed readymix producers to tailor their offerings more precisely to produce a far wider range of product choices than ever before. This means that the types of concrete produced today are suitable for a greater variety of uses and can be tailored to suit exact project requirements. Johan van Wyk, general manager of the Southern Africa Readymix Association (SARMA), says that designers, builders and specifiers need to be more keenly aware of the types of readymix that can be ordered and encourages them work more closely with readymix producers in future. He adds that “The Readymix Conference by Sarma” is the definitive place to share ideas and find out more about the characteristics of modern-day readymix.
GLOBAL BEST PRACTICE “The conference is being held at Misty Hills Conference Centre on the West Rand on 13-14 August 2014 and will showcase the ability of the readymix concrete industry. It is the perfect opportunity for for all disciplines to see what is available and share ideas with our industry’s professionals.
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“Speakers will include international guests with vast experience in the use of readymix (gained on large-scale projects across the globe). They will also shed light on best practices from all corners of the globe and provide an insight into alternative methods that can be employed locally. “We will also be showcasing tilt-up construction techniques with an actual demonstration of its ease of construction and simplicity. Tilt-up construction has already been widely mooted as a viable alternative to speed up provision of housing developments and is a costeffective and fast method of constructing public sector buildings, such as hospital, police stations, community centres, etc.
SUSTAINING AN INDUSTRY “Readymix producers and suppliers to the industry will also be able to shed light on new products that are suitable for anything from roads, skyscrapers and dam walls to lightweight chemical-resistant or ultra-dense concrete for any other type of use. These and many other products give professionals in the industry infinite choices when it comes to concrete and show why readymix is probably the most versatile building material on earth today,” says Johan.
CEMENT & CONCRETE
He adds that in addition to physical characteristics of readymix concrete, it is also good for sustainable developments due to its excellent thermal properties and easy (local) availability of raw materials. Socially it empowers communities who are employed full-time on site (rather than part-time on various construction sites) and as a result is more socially acceptable than site-mix. Significantly, the conference is also taking place in Women’s Month (August) which also serves to highlight the increasingly important role that women are playing in the manufacture and specification of readymix concrete throughout the country.
TOOLS OF THE TRADE
“To further highlight the role being played, the conference will feature a speaker on women in concrete, who will give her views of the industry and add spice to the alreadyimpressive panel of high profile speakers.”
For more information, visit www.sarma.co.za.
During the conference delegates will also have the opportunity to view static and working exhibits of the latest machines and equipment available to manufacture, as well as deliver concrete to sites. Admixtures that enhance the characteristics of concrete will also be shown. To learn more about the advantages and uses of modernday readymix it is advised that building professionals make arrangements soon to avoid disappointment.
MBA North Small Builders course to start in September Master Builders Association (MBA) North is presenting another of its very popular Small Builders Development courses, starting on September 6th this year.
H
enk Delen, MBA North Education, Training and Transformation Officer, says the course, which will be presented in 14 sessions on alternate Saturdays from 8am to 12 noon, contains vital information on how to successfully operate small and medium building enterprises. “There are also many other benefits for companies who send delegates to the course including, for example, the opportunity to market their businesses on the mpower ratings website,” he states.
THE SMALL BUILDERS DEVELOPMENT COURSE COVERS TOPICS SUCH AS: • The various facets of running a small business • Finding and securing work • How to tender for new business • Carrying out and efficiently controlling building projects • Management of, and legislation pertaining to, small businesses
“There are bursaries available for qualifying individuals and companies who send staff to the course will benefit from BBBEE points for Socio-economic Development and Skills Development. Similar benefits will also be bestowed on companies who sponsor materials required to conduct the course, such as stationery, and any form of sponsorship will be publicly recognised. Registered delegates who persuade other parties to also attend the course will qualify for tuition discounts,” Delen adds. In a special letter of enthusiastic praise, Roberto de Musso, a Giuricich Bros Construction foreman who attended the last MBA North Small Builders Development Course, stated that “the course makes a person on site think about each stage of a project, resulting in savings of costs and time while keeping a high quality standard of workmanship.” Seats are limited for the 2014 course to be held at the MBA North offices in Midrand. The cost is R4 225 (excl.) for MBA North members and R5 225 (excl.) for non-members.
SEPTEMBER 2014
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INDUSTRY INSIGHT
CESA supports Gordhan’s bold move to lead municipalities back to basics Consulting Engineers South Africa (CESA) welcomes the bold move to lead municipalities back to basics and to put in place institutional mechanisms to enable them to deliver core municipal services as announced by Cooperative Governance and Traditional Affairs Minister (CoGTA), Pravin Gordhan.
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oGTA has a responsibility to build a system of local governance, within the three spheres of government as set out in the Constitution. Gordhan added that building such a system is a long term project; however, the ministry is also tasked with dealing with immediate operational difficulties within local government.
Approximately 70% of the 278 municipalities do not employ even one engineer among its staff. CESA is committed to assisting municipalities in addressing this problem in the short term through the employment of its member firms and in the long term through the training and mentoring of municipal technical staff.
“It is in the municipal areas in which citizens work, live and socialise that this process of eradicating injustices, healing the divisions, improving the quality of life and where democracy, social justice and human rights become concrete and meaningful in the lives of South Africans.”
The Ministry of CoGTA will work closely with the National Treasury and the Auditor-General to improve their audits and ensure that performance improves. Minister Gordhan said within six months CoGTA will put in place systems to enable the ministry to monitor of the performance of every municipality on a day-to-day basis – this will provide a high degree of transparency and accountability to citizens.
CESA welcomes the call made by the Minister to establish an Advisory Committee of Eminent Persons drawn from various sectors, including civil society to advise him on issues arising in the procurement system within local government, as well as on how to increase integrity and the value system in this sphere of the public sector. This aligns well with the concept of establishing a watchdog (Chapter 9 Institution such as the Public Protector’s office) for the Construction Industry which CESA has been strongly advocating for a number of years. Judging by the number of procurement irregularities brought to its attention, CESA fully supports any attempt by the Minister to infuse a new ethic and value system within Government. “For years now, we have been calling for a total overhaul of the current procurement regime, which has relegated the duty of consulting engineers from that of the trusted adviser to clients to a situation where engineers have to tender for work. Hence, we are ready to partner with CoGTA in its quest to create an Advisory Committee of Eminent Persons,” says CESA CEO, Lefadi Makibinyane. The audits conducted by the Auditor-General have shown over many years that municipalities’ financial management falls short of requirements. This has been severely compounded by the exodus of technical skills and engineering expertise from municipalities since 1994, to the point where very few professional engineers are employed within the municipal sector.
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Makibinyane added that with regard to the Minister’s views on economic development such as the Community Work Programme and the development of local economics, CESA believes that its member firms, being responsible for infrastructure planning and design, are in a strong position to support municipalities and contribute significantly in this regard. “We shall continue to make it clear that preparation of infrastructure development projects, their planning and design lie within the expertise of consulting engineering profession and until such time, which may take decades, as the municipalities have built this capacity, our member firms shall continue to be the only source of support both at the National, Provincial and Local government. We therefore would like to draw the attention of the National Leadership that CESA is the integral professional resource that must be effectively utilized to conceptualize, design and supervise the procurement and implementation of the infrastructure projects while at the same time it is providing the fertile experiential training and development ground for the future internal capacity of the municipalities. This will be the litmus test of the technical capability of the municipalities," emphasizes Makibinyane.
CEMENT & CONCRETE
The role of synthetic fibres in concrete Various types of synthetic fibres are being used to improve the performance of concrete. This article examines the use of synthetic fibres in the concrete mix. Words: Bryan Perrie, Managing Director of The Concrete Institute
D
eficiency in tension in both plastic and hardened concrete made with portland cement can be overcome by the use of conventional rod reinforcement and the inclusion of a sufficient volume of certain fibres. While synthetic fibres can be used to improve the strength of hardened concrete, it is primarily used for crack control in plastic and semi-hardened concrete. Synthetic fibres are man-made fibres resulting from research and development in the petrochemical and textile industries. There are two different physical fibre forms: monofilament fibres and fibres produced from fibrillated tape. Currently there are two different synthetic fibre volumes used, namely low-volume percentage (0.1 to 0.3% by volume) and high volume percentage (0.4 to 0.8% by volume). Most synthetic fibre applications are at the 0.1% level at which the strength of hardened concrete is unaffected and their use is restricted to crack control. Synthetic fibre types that have been tried in cement concrete matrices include: acrylic, aramid, carbon, nylon, polyester, polyethylene and polypropylene.
ACRYLIC: Acrylic fibres have been used to replace asbestos fibres in many fibre-reinforced concrete products. In this process, fibres are initially dispersed in a diluted water and cement mixture.
ARAMID: Aramid fibres are 2.5 times as strong as glass fibres and five times as strong as steel fibres, per unit mass. Due to the relatively high cost of these fibres, aramid-fibrereinforced concrete has been primarily used as an asbestos cement replacement in certain high-strength applications.
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Concrete, whether used on the ground or raised by charging hopper for loftier applications, can be improved by the use of fibres, says The Concrete Institute.
CEMENT & CONCRETE CARBON:
POLYPROPYLENE:
Carbon fibre is very strong and substantially more expensive than others and therefore its commercial use has been limited.
Polypropylene fibres are hydrophobic and therefore have the disadvantages of poor bond characteristics with cement matrix, a low melting point, high combustibility and a relatively low modulus of elasticity.
NYLON:
Polypropylene fibres are tough but have low tensile strength and modulus of elasticity; they have a plastic stress-strain characteristic.
Currently only two types of nylon fibre are marketed for concrete. Nylon is heat stable, hydrophilic, relatively inert and resistant to a wide variety of materials. It is particularly effective in imparting impact resistance and flexural toughness and sustaining and increasing the loadcarrying capacity of concrete following first crack.
POLYESTER: Polyester fibres are available in monofilament form and belong to the thermoplastic polyester group. They are temperature sensitive and above normal service temperatures their properties may be altered.
POLYETHYLENE: Concrete reinforced with polyethylene fibres at contents between 2% and 4% by volume exhibits a linear flexural load deflection behaviour up to first crack, followed by an apparent transfer of load to the fibres, permitting an increase in load until the fibres break.
FABRIC AND COMPOSITE FIBRE REINFORCEMENT: South African manufacturers have been extremely innovative in developing versions of fibre for use with concrete. To overcome the bond and elastic modulus problem of polypropylene fibres, one development has been that of a composite of a core fibre (which can be polypropylene or a stiffer material such as acrylic, Kevlar, glass or carbon fibres) around which a fluffy coating of polypropylene or cellulose is spun. The coating can be bonded to the core at intervals to enhance the composite behaviour. These composite strands can be woven into a textile, or cut into appropriate lengths for a range of applications.
SEPTEMBER 2014
29
FINANCE & INVESTMENT
Go far, go together Gauteng Partnership Fund (GPF) bridges money gap for affordable housing delivery
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ince the 1970s, the urban landscape of the Gauteng Province has transformed into the highly connected cluster of cities, towns and urban nodes we know today. This has translated into a landscape of urban sprawl, lowdensity housing programmes and a spatial distortion in the spread of economic activity and employment opportunities. With the Gauteng urban region representing the most dense concentration of economic activity, population, and poverty in South Africa, it is also home to 50% of all South Africa’s high-income earners, and 13.6% of its people are living below the minimum living level. This disparity cannot be ignored. Even so, it is a land of opportunity, and 2002, Gauteng Partnership Fund (GPF) was formed as a bridge between the public and private sectors, helping answer to the demand for affordable housing in Gauteng, by leveraging the necessary finance for these projects.
Jabulani CBD, Soweto
WHY AFFORDABLE HOUSING? In its quest to leverage funding for affordable housing development in Gauteng, GPF contributes solutions not only to a localised set of challenges, but to a national dilemma. These challenges include a historical housing backlog, redressing Apartheid’s legacy of separateness, of capital redistribution and empowerment, of property ownership and what it means for wealth creation, reducing unemployment and creating jobs, the constitutional right to housing for all South African citizens, and the demand for better infrastructure and services supporting these houses. The question that comes to mind, then, is this squarely government’s responsibility?
Boni Muvevi, CEO of Gauteng Partnership Fund (GPF).
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SEPTEMBER 2014
Brickfields, Johannesburg
Kliptown, Soweto
FINANCE & INVESTMENT
POSSIBLE LIMITATIONS AND CHALLENGES:
• Contribution to SA’s economy: • Construction and property: jobs, tax, revenue • Mining sector: cement, stones, etc. • Manufacturing: doors, lintels, sanitary ware, etc. • Small business: plumbers, electricians, etc. • Finance industry: mortgage, microfinance. • Social investment: sustainable society.
• Government • Not enough capital available in government treasury for housing. • Pace of delivery needs to be improved if we are to meet demand. • Insufficient skilled human capital in government. • Limited innovation in addressing housing challenges. • Private sector • Driven rather by FSC, property charter, than opportunities. • Decisions on housing sector perception rather than facts. • Lack of investment in under-developed areas, i.e. black townships.
SOCIAL RESPONSIBILITY AND BUSINESS OPPORTUNITY Based on C.K Prahalad: The fortune at the bottom of the Pyramid: Eradicating poverty through profits: 2005.
GOVERNMENT Resources Control/standards Power/influence Concern for Constituency
PRIVATE SECTOR
Working together WIN-WIN Relationship
Products Processes Solutions Expertise
GPF is structured as a social delivery vehicle of the Gauteng Department of Human Settlements (GDHS), operating on a cost recovery basis, and is not expected to earn market returns, but social returns. The socioeconomic returns on funded projects or deliberate interventions are as significant as financial returns. GPF is a calculated risk taker with an appetite to share financing risk with partners, putting up the first layer of capital, and thus occupying a subordinated first-risk position in the funding structures of projects. GPF expects the investor/developer to contribute minimum equity towards a project to demonstrate seriousness and have a skin in the game.
GPF PERFORMANCE: 2003 - 2014 (MARCH YEAR END): Over the past 11 years, GPF has committed funding for projects to a value close to R600 million, leveraging over R2.2 billion of private funding in social rental housing projects. This has facilitated over 20 000 housing units and funded over 15 000 completed units.
COMMUNITY Housing Dignity Family life Quality of life
to promote participation of previously disadvantagedowned companies in the affordable rental property market. “If you want to go fast, go alone. If you want to go far, go together.” – African proverb. Adapted from the GPF Property Entrepreneur Seminar Presentation delivered by Boni Muvevi, GPF CEO on the 4th of June 2014.
FOR MORE INFORMATION ABOUT THE GPF PRODUCT RANGE, OR TO APPLY FOR FUNDING, PLEASE CONTACT: (t) 011 685 6600 (e) info@gpf.org.za (w) www.gpf.org.za
GPF boasts its Rental Housing Fund, Social Housing Fund, and more recently, its Entrepreneur Empowerment Property Fund (EEPF), an incubator programme designed
SEPTEMBER 2014
31
WINDOWS & DOORS
Studio on Park Vijf uPVC windows and doors for Stellenbosch student accommodation
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ehau authorised partner, T&T Plastics, recently fabricated and installed 62 double-glazed tilt & turn doors with top and side lights at the Studio on Park Vijf student accommodation in Stellenbosch, Western Cape.
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SEPTEMBER 2014
They also supplied uPVC side hung windows, sliding doors, single leaf residential doors and fire escape doors fitted with emergency exit locks for the general use areas in the building.
WINDOWS & DOORS
JK Architects’ Jürgen Kieslich and Hodevco South Africa’s Stefan Braun, Development Manager of Studios on Park, consulted with Rehau’s Adrian Baker regarding the design and choice of uPVC window and door options. The uPVC tilt & turn doors where specified as they are especially well suited to the climate in Stellenbosch. The locked doors allow for ventilation in the tilt position which is ideal for the rainy season. During summer the doors can be opened fully for fresh air, improving living comfort. The apartments were constructed off-site using a first-forSouth Africa modular construction method, a rapid building technique that has been used in Europe, the Far East and the United States for decades. The tilt & turn doors were manufactured and then installed off-site into
the units. The completed apartments were then transported and craned into position and joined with the conventionally built components of the building. T&T Plastics manufactured the doors locally using Rehau’s UV stable PVC profiles from the Ecotec range. These uPVC windows and doors are thermally efficient, very durable and low maintenance. They will not rot, warp or discolour and never need painting or varnishing. Both new buildings and refurbishments can be fitted with Rehau’s uPVC windows and doors. T&T Plastics received a certificate from the developer of Studio on Park Vijf for their contribution in completing the building in a record time of five months.
SEPTEMBER 2014
33
COMPANY PROFILE
An expert presenting during the RBA Financial Freedom Seminar.
How SA’s affordable housing specialists harness property to empower people High rates of consumer debt default among retailers and unsecured lenders have created the impression that big business is exploiting South Africa’s emerging middle class and that people are generally struggling to cope with day-to-day living. By: AJ Rothman*
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ut there’s a lesser-known, and much happier, scenario playing out in South Africa’s new working class neighbourhoods: many ordinary salary earners are seeing a turn-around in their wellbeing, thanks to property ownership. This access to real estate is made possible by affordable housing specialists like RBA Homes who are enabling people that were previously denied access to mainstream property ownership to buy quality homes using their own resources through fully bonded mortgages. So, how is it that property development companies like RBA Homes and its partners, in particular, home loan providers, are experiencing a different side to the South
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African consumer? There are a number of reasons, but cutting to the heart of the matter are these factors: providing our clients with the information that they need and doing business in a way that genuinely puts customers’ best interests at the centre of the business strategy. The two are linked. A better educated consumer learns to manage his or her debt profile in order to qualify for home finance. This, in turn, means they are potential clients, not only now, but also in the future, as homeowners realise that it is in their interests to maintain their good credit ratings in order to eventually climb up the property ladder or access equity through their mortgages to, for example, fund tertiary education for their children.
COMPANY PROFILE
Clients registering for the RBA Financial Freedom Seminar. As we know, loans from mainstream retail banks are repaid at interest rates that are closely linked to the various banks’ prime rates and, ultimately, inflation. These consumers are not on exorbitant repayment terms, as is the case with other types of personal loans, so they are generally much better off. They move into a category of people who manage their personal finances more effectively as a result of buying their first home and understanding how important it is to maintain a good payment profile. These consumers think twice before using easy, expensive credit that they can’t afford and they have access to emergency funding through the equity in their homes that does not suck them into a spiraling debt trap. Developers like RBA Homes emphasise consumer education, assisting South Africans to get on stable financial footing. This in turn means that they are able to buy their first home from us and hopefully they will come back to us again when they are ready to buy a bigger home or a property in a different area. They also spread the word about the benefits of buying a new home to their friends and family. If they don’t buy from us, that is fine too. We sleep better at night knowing that our endeavours are making a positive difference to the quality of life of fellow South Africans in an asset class that has been historically the preserve of a privileged few. From a national perspective, the owners of affordable housing become less of a burden on the state. As they take ownership of their wealth-building efforts through their property investments, they also make a meaningful contribution to their long-term savings goals. This is precisely the type of empowerment advocated by leading international economists, like Peruvian Hernando de Soto, for developing countries. Property rights, and obviously ownership, are seen as essential ingredients for lifting populations from poverty and empowering them.
South Africa’s commercial affordable housing sector is playing a key role in the global objective to leverage home ownership to produce economic growth. We understand the importance of empowering people through education. We have deployed considerable resources in delivering education-focused seminars for our affordable housing market clientele at special venues as well as people’s places of work. We have also developed and distribute key educational content through booklets, on our website and an electronic newsletter. Our highly trained consultants are engaged in one-to-one discussions with consumers on topics directly and indirectly related to home ownership. These range from managing a monthly budget to using property to create wealth for future generations. This emphasis on education in our business strategy is paying off. We receive positive feedback from people who benefit from the content and personal tuition we provide. Importantly, with our guidance, clients who would not have qualified for funding are getting their financial affairs in order to make that vital step of buying their first property. We are assisting people to migrate from that category of consumer that no-one wants on their books to credit-worthy customers with growing spending power. The term ‘affordable housing’ often isn’t associated with wealth-building, nation-building or poverty alleviation. Let’s not overlook the valuable contribution we are making to many families who aspire to better living standards. * AJ Rothman has been CEO of RBA Holdings Ltd. since 2012. A former chemical engineer, he completed an MBA before working for Standard Bank where he built South Africa’s largest securitisation business.
SEPTEMBER 2014
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CEMENT & CONCRETE
VB4X with topping feed capable of producing over 120 000 stock bricks per 9-hour shift.
CEMENT & CONCRETE
Building a brighter future for Namibia Pan Mixers South Africa (PMSA) - the largest supplier of concrete brick, block and paving-making machinery and technology in Africa - is set to experience measurable growth in Namibia thanks to the government’s new housing development programme.
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MSA marketing and sales manager, Quintin Booysen, notes that the new housing development programme that has been implemented by the Namibian government will have a positive impact on the company. "PMSA has been working in Namibia for the past three decades, and will continue to grow in the region thanks to this new initiative." The housing development plan intends to build 185 000 houses by 2030 to address the country’s housing backlog, as well as upgrade housing in the country’s informal settlements. The aim is to build 9 000 houses over the next 15 months, and the remaining quota over the next 16 years. According to Booysen, this has created a boom in the Namibian market. "In order to meet the increased demand for bricks brought about by this programme, existing clients have placed orders for additional plants. What's more, prospective brick and block making businesses have also placed orders for PMSA plants after identifying new business opportunities." Booysen points out that the most popular plants are the VB4 and VB4X range of block making machines. "The highperformance and reliability of PMSA’s block making machines ensures that producers can consistently produce large volumes of bricks with minimal delays and downtime.” Both models come standard with adjustable speed control of the hydraulic functions, resulting in faster and smoother machine operation, with increased productivity and a reduction in wear and tear. What’s more, an electronic PLC control allows for change of pre-vibration, feed box movement, number of feed strokes and number of previbrations, while the machine is still in operation. These features ensure instant adaptation to changing moisture contents and aggregate consistency, without stopping the machine. Booysen notes that the heavy-duty VB4X block making machines are capable of producing more than 120 000 bricks per shift.
"It is estimated that most houses will be between 60m2 and 90m2, which would require approximately 18 000 bricks per structure. A brick manufacturer producing up to 120 000 bricks per day could therefore add substantial value to this project by making use of the VB4X plant," he adds. Booysen states that PMSA has been dominating the Namibian market through quality concrete equipment. "Many customers have been running the same machines for the past 30 years. When new technology is developed, technicians go onsite to upgrade the existing equipment to ensure that it is running at optimum efficiency. This forms part of our 'built to last' philosophy." PMSA also offers customer training and support whenever it is needed. “We are able to offer clients on-site training, in addition to providing them with the option to come to South Africa for training at our purpose-built showroom and sales facility." Booysen admits that PMSA has faced challenges working in Namibia. “To service the far reaching areas of such a vast country, a company needs to be quick and agile. Namibia's close proximity to South Africa has enabled us to overcome this challenge by delivering machines and parts by road, while small parts are delivered via air freight on the same day if necessary." According to Booysen, PMSA has a positive future in Namibia, which he believes is a stable country that is investing in its people and infrastructure. "PMSA will play an important role in the housing scheme that is currently under way, as many of the bricks will be manufactured using our machines. In addition to this, the country shows signs of phenomenal opportunity with the new gas and oil refineries, which prompts the potential for greater growth,” he concludes.
SEPTEMBER 2014
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APPOINTMENT
FNB appoints CEO for FNB Home Loans and FNB Housing Finance from within the organisation First National Bank has announced the appointment of Marius Marais as Chief Executive Officer, FNB Home Loans, and Lee Mhlongo as Chief Executive Officer, FNB Housing Finance. Marais has more than 15 years of financial services experience, having held various roles within FNB and previously, the role of CEO FNB Housing Finance over the last 10 years.
M
arais started Housing Finance as a new business in 2002 and reached the business goal of over 100 000 units financed and a R14 billion loan book within 10 years. He also ensured FNB delivered alternative building and green technologies to the affordable housing market. Lee Mhlongo has been appointed to take over the Housing Finance Division from Marais. Lee has been with the bank since 2004, holding numerous positions in Retail Banking, FNB Insurance and RMB Private Bank. “The new role as CEO FNB Home Loans will allow me the opportunity to exert both my financial services experience and ten years’ experience gained within the Housing Finance business and property sector. I believe this experience will assist in unlocking further value in our Home Loans division,” says Marais. “Heading the Housing Finance division is a new and exciting challenge for me. The business is innovative and growing from strength to strength. There is lots of potential in this market and I am looking forward to the opportunities this position brings,” concludes Mhlongo. Marais holds a Masters in Business Leadership, as well as a BCompt from the University of South Africa. Mhlongo holds a BSc Actuarial Science and Mathematics from the University of Witwatersrand. Lee Mhlongo, CEO of FNB Housing Finance.
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