The Gauteng Department of Cooperative Governance and Traditional Affairs and Human Settlements MEC Paul and Transformation committee has taken a decision to transform Gauteng Partnership Fund.
The MEC met with the transformation committee at the Gauteng Gambling Board earlier today.
MEC Mashatile said that the department was in the process of transforming the Gauteng Partnership Fund (GPF) to be more effective. When the fund was set up, it was set up as a trust and there was urgency to ensure that capital was raised as soon as possible to leverage private sector funding into affordable housing.
“We are now looking at raising funds to the tune of about R10 billion over the next few years to make the GPF become more effective” said the MEC.
MEC Mashatile said plans are in process to convert the GPF from a trust to a public entity or a state owned company where most of the funds will then go to Mega Projects which will enable it to be in a position to raise funds and loans.
“Mega projects are mixed development where we have RDP houses; bonded housing, rental housing, social housing and affordable housing. There will be schools; clinics; crèches and other social amenities. Those are the projects that we are targeting that GPF will raise funds for” said MEC.
He further said that a transformation committee was set up around May in 2016 to ensure that we strengthen GPF and that he is happy that a lot of work has been done. Mashatile said most of the month of November will be dedicated to capital funding and roadshows to meet funding institutions, including pension houses and banks.
“By the end of November we are planning to have housing finance indaba or summit where we will be bring in other role players to look into how to leverage more funding into the sector” concludes Mashatile.
He also said that while the GPF is waiting to be transformed into a state owned company, amendments will be made around the trust deed to increase the number of trustees on the board and to give the MEC more powers to be able to oversee and ensure its efficiency and effectiveness, including taking ownership of what the trust is doing.
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