First National Bank's Investment into the N2 Gateway Project, Langa, Cape
Town
7 June 2007
MEC for Local Government and Housing, Richard Dyantyi
Councillor of Langa, Councillor Gope
Chief Executive of the FNB, Mr Michael Jordaan
FNB Executive, Francois Pienaar
Distinguished guests
Ladies and gentlemen,
In a word we have arrived.
Today marks the launch by the First National Bank (FNB) of a project to
build 3 000 bonded houses as part of Phase two of the N2 Gateway project. The
houses will be built in Joe Slovo and Delft settlements which form part of the
greater Langa Township. In a project that will benefit those earning between R3
500 and R7 500 their prices will range R150 000 to R250 000 per unit. A few
years ago this mixture of bonded houses with rented and subsidised 'Breaking
New Ground' (BNG) houses was unthinkable. For some it was even unworkable. But
now it is happening.
But what is more gratifying to me is that the lead institutions in driving
the economy of our country are at the forefront of this sterling progress,
demolishing in that unfounded preconceptions and fears. To ensure that the
houses are affordable, FNB has partnered with Government which will provide
subsidies to qualifying individuals as part of its ongoing commitment to house
the nation. Hence, the FNB's total investment in the N2 Gateway would now be in
excess of R900 million for the building of more than 2 500 units. Of course it
was not easy to get here. We firstly had to struggle and overcome the
difficulties we had among ourselves.
Who would forget, for example, that initially banks withdrew from making
housing finance available and accessible to low to medium income households and
that in consequence as government we had to haul out the threat of the
Community Reinvestment Act. To obviate the threat we then had to agree on the
Financial Sector Charter which created a real climate of engagement amongst all
of us, namely, banks, government, labour and communities. A key achievement in
that regard was an agreement that related to banks making targeted or equity
investments in projects in areas where gaps or blockages in economic
development have not been adequately addressed by financial institutions. This
therefore meant the financing of or investment in both low-cost and affordable
housing.
But an advantage for us which is indicative of the extent to which the
relationship has grown and trust has developed is the fact that the FNB is not
merely making efforts at meeting its own Financial Services Charter targets. In
making the huge investment here on the N2 it is making the statement that
indeed our communities need to be integrated. It is demonstrating the belief it
shares with us that those who make our economy run, the working people, must
stay in places of close proximity to the areas of their work. It is showing
that we need to break the geographical concentration of poverty so that we can
all share in the benefits of a growing economy. This is the great promise of
things to come and it is no exaggeration to say that finally we have a model in
housing on how to eradicate the bankrupt legacy of apartheid.
The investment and the confidence shown therefore is not an end in itself.
It aims to achieve the goals of poverty reduction and societal integration both
of which are critical for our development and economic growth. This is the goal
that the FNB has placed itself in service of with its skilled workforce,
capital resources as well as infrastructure and technology. For the City of
Cape Town this means a tremendous boost in the efforts to deal with the massive
immigration of people seeking employment and other opportunities particularly
from the Eastern Cape. This then is another reason why the launch of the
project is so significant. Here today we are witnessing the success of
co-operation between governments, the private sector and the local community.
We see with our own eyes what is being done to develop and foster sustainable
and integrated human settlements at the local level and the potential that
exists for even greater achievements to take place.
We as government know too well that on our own we cannot succeed. We also
know too well that all the three spheres of government need to be involved and
work together for developments of this kind to take place. This includes
community members too whose lives would, especially in this case, be briefly
inconvenienced by construction and resettlement. I am very proud of the
achievement we have made together considering especially that when you come to
Joe Slovo from the direction of the airport, unspeakable squalor was visible.
Shameful living conditions were shaming all of us who are in government let
alone the suffering and pain of our people who had to rear children in an
environment where they saw a future that was bleak and dreary. The partnership
with banks such as the FNB finally changes all of that and gives us a glimpse
into a future where 'all shall have housing, security and comfort.'
This is not the only project where we are collaborating with the bank. The
First National Bank has its own project at Protea Glen in Soweto where at its
conclusion, the project will provide R300 million in the form of bridging
finance to the developer for the development of 3 035 housing units. We commend
FNB for its sterling work. I am glad it responded to our call. I am happy and
glad too that the people of Langa allowed us to come and experiment this
partnership here. I assure you that you will not be disappointed with us and
that the final product of the project will indeed be what we promised you.
Years ago before liberation, Chief Albert Luthuli already warned us that
people need to see the fruits of their freedom. So he instructed us saying:
"You dare not fail them for failing them is failing the best in life - Liberty,
for which they and others throughout the ages everywhere have sacrificed all to
secure it and preserve it. We young fighters for freedom in this age stand
between these heroes of freedom and posterity and our bounden duty is to defend
and preserve this divine heritage � liberty and all it stands for - and hand it
unimpaired to generations." This is the promise that we will keep. We will
never fail you, our people!
I thank you.
Issued by: Department of Housing
7 June 2007
Source: Department of Housing (http://www.housing.gov.za)
