The private and the public sector have joined hands to develop one of the first rural housing developments. Madeleine Wackernagel reports on the project
The Housing Ministry — specifically its failure to deliver — has come in for substantial criticism in the past year. So it was with obvious delight that Minister of Housing Sankie Mthembi-Nkondo turned the first sod at the launch of the Mhinga housing project in the Northern Province last week.
The R40-million project involves a few firsts. To date, what little housing development that has taken place has been based in urban areas; this one will provide 2 500 houses, initially, for a rural community. In addition, the land, bordering on the Kruger National Park, was reclaimed from the government for the tribal authority, and then converted for individual use on a freehold basis.
With government slow to take the initiative, it was left to the private sector, in the form of Nedcor and Megacom, a developer, to bridge the gap. Nedcor acted as facilitator between the government, the developer and tribal leader Hosi Mhinga, while Megacom set out to prove it was possible to build houses for R15 000 each.
Nedcor’s Kevin Gibb says the bank’s role is an inclusive one: “Nedcor has for a long time realised that the private sector has to get involved and take risks if South Africa’s housing problem is ever going to be solved.
“But we needed central and provincial government on board. In the housing minister and the director general of housing, Bobby Cobbett, we found the support we needed, which has to date proven to be the backbone of the initiative in many respects.”
The project proves that government and the private sector can work hand-in-hand for the national good, says Gibb. And while the territory is unchartered for banks in general, Nedcor believes the financial sector can’t stand by and wait for government to do everything, because it plainly cannot.
The Mhinga project will be augmented by government’s contribution to schools, clinics and infrastructure, such as sewage systems and roads.
The project lays great emphasis on boosting the economy of the area, where unemployment is rife. To this end, local labour — mostly women as heads of households — and local materials will be used. The potential for entrepreneurial development is enormous, says Mthembi-Nkondo. Of the R40-million initial outlay, R10-million will go back into the community.
She emphasised the need to stem the flow of people from rural to urban areas: “Projects such as this one, where decent housing is provided and where, through the upliftment of the economy, there is hope for the future, will surely serve to discourage people from chancing the questionable promises held out by the bright, but deceptive lights of the cities.”
Megacom’s Albert Nelissen has set a target of completing the first phase of 2 500 houses within nine months. Eventually, a further 15 000 units with the additional infrastructure and services, will be provided.
He emphasises the need for functionality: roads will be paved with locally-made bricks, not tarred, so repairs are cheaper. And the bricks are moulded in such a way that they are easily laid, along the lines of building with lego.
Such a project only became feasible once the housing legislation changed, says Gibb. Now the unemployed will receive a subsidy to cover the entire cost, while those who can pay, can take out a bond with Nedcor. So far, only 200 people in the area qualify for a mortgage, but housing the jobless is the project’s first priority.
The Mpumalanga housing initiative, unveiled on Wednesday, contrasts with the Mhinga project in that it is a joint venture between Nedcor and local government. The province’s premier, Matthew Phosa, opened a showcase village in Nelspruit, with similar initiatives planned for Secunda, Piet Retief, Barberton, Amsterdam and other towns in the area.
The R500-million development aims to have 6 000 houses built within 18 to 24 months and bonds will be available to people with jobs, while the unemployed qualify for subsidies.
Phosa also stressed the ripple effect of such a project for the economy as a whole: “Our people must see the entrepreneurial opportunities which now present themselves, for example, the provision of building bricks, window and door frames, roof trusses and many other items required in such building projects. Innovative local people should jump at this opportunity to start their own businesses.”