South Africa to get new Human Settlements Development Bank
The operating business model of the Human Settlements Development Bank (HSDB) has already been concluded and approved by National Treasury, says minister of Human Settlements, Water and Sanitation Lindiwe Sisulu.
Responding in a recent parliamentary written Q&A, Sisulu said that the HSDB is now among the ‘apex priorities’ of her department’s 2020 legislative programme.
“The office of the state law advisor has already been consulted on the contents of the draft HSDB Bill and a process is underway to incorporate the comments received for consideration by cabinet,” she said.
“Once cabinet approve the bill, the next step would be to table it in parliament for processing.”
Announced by president Cyril Ramaphosa in his 2019 state of the nation address (Sona), the Human Settlements Development Bank aims to accelerate the delivery of housing across the country.
Ramaphosa has said that the bank will leverage both public and private sector financing to aid in housing delivery. The ultimate goal would be to construct an additional 500,000 housing units by 2024, he said at the time.
Sisulu previously said that the bank will participate directly in the risk and funding of large-scale development projects and programmes.
“The bank was set up as an apex level financial institution catering to the housing sector needs across the Human Settlements supply chain,” she said in a briefing in July 2019.
“Once fully established the HSDB will be central to all financing activities and market-making activities across the housing supply chain.
“At a wholesale level, the bank will participate directly in the risk and funding of large scale development projects and programmes as well as facilitate and fund the requirements of housing finance intermediaries operating in the social and gap markets.
“The bank already supports a number of specialised asset-based social housing finance entities.”
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