Limpopo Business 2017-18 edition

FOCUS Risima Housing and

FOCUS Risima Housing and Finance Corporation Providing access to housing and unlocking value in rural areas. The Risima Housing and Finance Corporation, a subsidiary of Limpopo Economic Development Agency (LEDA), exists to provide housing finance for citizens of Limpopo. The word Risima is derived from the Tsonga word for “value”. The CEO of the organisation, Dr Shima Nokaneng, says that the particular target market is the lower-income group, who “sometimes have challenges getting approvals from commercial banks”. A primary focus for Risima is the “gap” market. This refers to prospective home owners who earn too much to qualify for state assistance (for example, RDP housing) but not enough to qualify for mortgage loans. Typically, this covers incomes ranging from about R3 500 to R15 000 per month. Partnerships Two important programmes are run by Risima in conjunction with national and provincial government departments. Government Employees Housing Scheme (GEHS): Together with the National Department of Public Service and Administration, Risima arranges for a non-mortgaged financial product to assist government employees get a foot on the property ladder. Dr Nokaneng reports that a default rate of less than 2% proves the value of such a scheme: “Our advantage is that we target government employees which helps to reduce risk. Applicants have to be employed with a good credit risk and then we check affordability and match that with documentation such as payslips.” Finance Linked Individual Subsidy Programme (FLISP): In partnership with the Limpopo Department of Cooperative LIMPOPO BUSINESS 2017/18 28

FOCUS Affairs, Human Settlements and Traditional Affairs (COGHSTA), Risima distributes grants to applicants who qualify for money to make up the shortfall between an asking price and what the applicant can afford or if a deposit is needed but the applicant can’t fund it. The gap market is the target market for FLISP. The subsidy is being rolled out in the Polokwane suburb of Bendor, Lephalale and other regions of the province. This comprises threebedroomed houses and semidetached townhouses. Mining houses: A new area of cooperation is imminent in that Risima and a number of mining houses such as Exxaro, Amplats and Northam (at Thabazimbi) have been in discussion about working together to deliver housing. Preparatory work has been done and concrete steps should be seen in the fourth quarter of 2017. Expansion Risima’s mandate extends across each of the five regions of the province of Limpopo and it currently has four offices. As of October 2017, the company head office will be in the provincial capital, Polokwane, on the corner of Rabie and Van Rensburg streets. “Our new offices will be bigger,” says Dr Nokaneng, “and we will be more accessible to customers and stakeholders.” New offices are also to be established in areas such as Makhado (Louis Trichardt), Lephalale, Musina and Modimolle to further widen the company’s footprint. This geographic expansion is proof that demand is on the rise and that Risima’s more aggressive approach is paying off. The large coal mine and new power station at Lephalale mean that a further project comprising 2 700 units is in the works in that area. LOANS GRANTED Region Loans granted Capricorn 61 653 927 Mopani 10 587 032 Sekhukhune 9 174 632 Vhembe 14 998 829 Waterberg 14 439 211 Total 110 853 631 GOALS 2016/17 Risima 2016/17 Target Achieved Home loans 190 191 Loan approvals R78.9-million R110.8-million Contribution to LEDA income 5.7% 7.5% 29 LIMPOPO BUSINESS 2017/18