Limpopo Business 2018-19 edition

OVERVIEW Construction

OVERVIEW Construction and property Mining and energy projects are creating demand for housing. SECTOR INSIGHTS Limpopo has a second regional shopping mall. The mineral riches of Limpopo are attracting new mining projects and the Lephalale’s huge coal deposits determined the construction site of one of the world’s biggest new power stations. The mining and energy sectors are themselves responsible for a great deal of the work in the construction and property sectors, but these new projects are also generating a huge new demand for housing. The Provincial Government of Limpopo says that since the country held its first democratic elections in 1994, it has built 320 000 houses for the citizens of the province. A recent budget of the Department of Cooperative Governance, Human Settlements and Traditional Affairs, pledged a further 80 000 “housing opportunities” by 2019. Steady increments in the COGHSTA budget will accommodate this goal. Of the 2017/18 departmental budget of R2.5-billion, R1.4- billion is devoted to housing. By 2019/20, the department will have R2.8-billion to spend. The gap market – people who earn too much to qualify for social (RDP) housing but don’t earn enough to be granted bonds – is the subject of a lot of discussion in South Africa. Opportunities exist in this market, but obviously the risk profile is different. There is even a new association to cater for contractors, developers and bond originators in this subsector, the South African Affordable Residential Developers Association (SAARDA). The Risima Housing and Finance Corporation, a division of the Limpopo Economic Development Agency (LEDA), is delivering a product for the gap market, the Finance Linked Individual Subsidy Programme, for those earning between R3 501 and R15 000 per month. Risima and COGHSTA distribute grants to cover a deposit or to make up the shortfall between an asking price and what the applicant can afford. The subsidy is being rolled out in the Polokwane suburb of Bendor and in Lephalale 600 units have been erected, comprising a mix of three-bedroomed houses and semi-detached townhouses. Together with the National Department of Public Service and Administration, Risima arranges through the Government Employees Housing Scheme for a non-mortgaged financial product to assist government employees get a foot on the property ladder. Risima is also exploring cooperation with mining houses such as Exxaro, Amplats and Northam at Thabazimbi. An innovative approach to unlocking the value of land in traditional areas may happen if the National Home Builders Registration Council (NHBRC) LIMPOPO BUSINESS 2018/19 64

OVERVIEW approve a plan for the conversion of Permissions to Occupy (PTO). Risima sees potential in converting PTOs to title deeds and is looking at deep rural areas such as Vhembe and Sekhukhune. 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. Other training relates to project and financial management, business cost and pricing, marketing and understanding public service supply chain and tender procedures. LEDA is an agency of the Limpopo Department of Economic Development, Environment and Tourism. A large development is underway in Thohoyandou in the northern part of Limpopo. A 27ha site is being converted into Thavhani ONLINE RESOURCES Black Business Council in Built Environment: www.bbcbe.org Construction Education & Training Authority: www.ceta.org.za Construction Industry Development Board: www.cidb.org.za South African Affordable Residential Developers Association: www.saarda.co.za South African Property Owners Association: www.sapoa.org.za City which will include an office park, automotive-related businesses, private healthcare, a library, an information centre and a sports stadium. Thavhani Mall (with 134 shops across 50 000m²) is already functioning. The partners in the R1-billion project are Thavhani Property Investments, Vukile Property Fund and Flanagan & Gerard Property Development. The super-regional Mall of the North, shown on the opposite page, opened in Polokwane in 2011. It was developed by Resilient Properties Income Fund, Moolman Group and Flanagan & Gerard. The annual conference of the Black Business Council in Built Environment (BBCBE) was held in Polokwane in July 2018. Making you safe, with great designs TD Steel and Aluminium Products Specialists in gates, gate motors, doors, fences and carports. TD Steel and Aluminium Products (previously Mphahlele & Sons Civil Construction) was founded in 2009 by Robert Mphahlele. With a workshop based in Polokwane, the company now offers its services all over Limpopo. With expertise in the construction sector, our experienced staff is ready to customise a product for your home or business. We are proud of the beautiful steel gate designs that we tailor-make for individual customers. We also supply steel palisade fencing for the home or commercial premises. We supply, install and repair • burglar-resistant doors and aluminium and wooden garage doors • sliding and swing gates • steel carports • Centurion and DTS gate motors. If it’s aluminium or steel, give us a call. We have more than 10 years of experience! Contact details: Branches: Stand 265, Dithabaneng Ga-Mphahlele, Polokwane (main) and 563 Southern Gateway, Polokwane | Telephone: 073 005 7869 Email: mphahlelesteelworx@gmail.com | Facebook: Mphahlele steel worx Reg no:2009/203276/23