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Click to edit Master subtitle style 3/20/12 To: Portfolio Committee on Human Settlements RHLF STRATEGIC PLAN 2013-2017 By:Jabulani Fakazi, CEO & Bruce.

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Presentation on theme: "Click to edit Master subtitle style 3/20/12 To: Portfolio Committee on Human Settlements RHLF STRATEGIC PLAN 2013-2017 By:Jabulani Fakazi, CEO & Bruce."— Presentation transcript:

1 Click to edit Master subtitle style 3/20/12 To: Portfolio Committee on Human Settlements RHLF STRATEGIC PLAN By:Jabulani Fakazi, CEO & Bruce Gordon, CFO

2 Click to edit the outline text format Second Outline Level  Third Outline Level Fourth Outline Level  Fifth Outline Level  Sixth Outline Level  Seventh Outline Level  Eighth Outline Level Ninth Outline LevelClick to edit Master text styles – Second level Third level – Fourth level » Fifth level Outline RHLF MandateBroad Policy ContextSituational AnalysisStrategic Outcome Orientated GoalsCorporate GovernanceConcluding Remarks

3 Click to edit the outline text format Second Outline Level  Third Outline Level Fourth Outline Level  Fifth Outline Level  Sixth Outline Level  Seventh Outline Level  Eighth Outline Level Ninth Outline LevelClick to edit Master text styles – Second level Third level – Fourth level » Fifth level MANDATE People Facilitate access to incremental housing finance for low income rural households Rural Communal land, rural towns and small towns Monthly Income Maximum R9 800 Focus under R3 500

4 Click to edit the outline text format Second Outline Level  Third Outline Level Fourth Outline Level  Fifth Outline Level  Sixth Outline Level  Seventh Outline Level  Eighth Outline Level Ninth Outline LevelClick to edit Master text styles – Second level Third level – Fourth level » Fifth level Policy Context Human Settlements Sustainable Rural Outcome 8 Upgrading informal housing Comprehensive Rural Development Programme Ensuring fundingHousing Backyard rentals SMME development Finance to on-lend National Development Plan Inclusive rural economyTransforming rural settlements Deliver non-mortgage/IHF loansSupport job creation

5 Click to edit the outline text format Second Outline Level  Third Outline Level Fourth Outline Level  Fifth Outline Level  Sixth Outline Level  Seventh Outline Level  Eighth Outline Level Ninth Outline LevelClick to edit Master text styles – Second level Third level – Fourth level » Fifth level Policy Context – State of the Nation Address 2012 Infrastructure: Increased utilities Loans for connections New construction work Spatial restructuring: People in new areasNew intermediary locations – new jobs New low income home owners in new areasNew jobs for construction industry targeting our market Job creation: Increase in low income home owners Increase in loan demandIncreased need for RHLF funding Higher impact by RHLF and improved living standards in our market Improved living standards in our impact area

6 Click to edit the outline text format Second Outline Level  Third Outline Level Fourth Outline Level  Fifth Outline Level  Sixth Outline Level  Seventh Outline Level  Eighth Outline Level Ninth Outline LevelClick to edit Master text styles – Second level Third level – Fourth level » Fifth level Situational Analysis External factors affecting RHLF: Volatility of RandOver Indebtedness and interest rates Effects on RHLF: High Levels of Debt Consolidation + high rejection rate on applicationsIncreased Competition so need to look at different areasCollection rates / Bad debt provisioningHigher risk of leakage from mandateInflation food, energy, transport- less income for housing Slow recovery world economy, debt crisis in the Eurozone, liquidity crunchUnemployment levels Funding: R99m received 2010/2011 & 2011/12 FYsR32m in 2012/13 Balanced portfolio: Well established client increase exposure to max 25%.Increase intermediate entities and pursuit of community based organisations and other alternative business channels – higher maintenanceHigh risk entities: conservatively balance risk with impact Lowe risk intermediaries – lower impact

7 Click to edit the outline text format Second Outline Level  Third Outline Level Fourth Outline Level  Fifth Outline Level  Sixth Outline Level  Seventh Outline Level  Eighth Outline Level Ninth Outline LevelClick to edit Master text styles – Second level Third level – Fourth level » Fifth level Situational Analysis Human Resources: Small but dedicated team COO – put on hold pending sufficient increase in levels of activitiesEstablish development impact monitoring capacity: 2 interns DFI review & consolidationProvincial Government and Local Government Interaction: Continue engaging provinces to support housing delivery—especially where service sites have been deliveredParticipate in Counsellor Training on human settlements issues RHLF is playing an active supportive role in the ongoing DFI review & consolidation process.

8 3/20/12 Human Resource Capacity

9 Click to edit Master subtitle style 3/20/12 STRATEGIC OUTCOME GOALS

10 Click to edit the outline text format Second Outline Level  Third Outline Level Fourth Outline Level  Fifth Outline Level  Sixth Outline Level  Seventh Outline Level  Eighth Outline Level Ninth Outline LevelClick to edit Master text styles – Second level Third level – Fourth level » Fifth level Implications of Situational Analysis Targets must be set in the context of these economic realitiesTargets for 2012/13 are still on the conservative sideIntermediaries are not looking at growth but they need to continue focusing on improving portfolio qualityConsumer protection critical: avoid pushing credit and then looking at portfolio as “sub-prime” laterFocus more on supporting intermediaries with sound infrastructure to achieve impactWhile gradually building new infrastructure for future growth

11 Click to edit the outline text format Second Outline Level  Third Outline Level Fourth Outline Level  Fifth Outline Level  Sixth Outline Level  Seventh Outline Level  Eighth Outline Level Ninth Outline LevelClick to edit Master text styles – Second level Third level – Fourth level » Fifth level Strategic Outcome Orientated Goals  Financial Goals

12 Click to edit the outline text format Second Outline Level  Third Outline Level Fourth Outline Level  Fifth Outline Level  Sixth Outline Level  Seventh Outline Level  Eighth Outline Level Ninth Outline LevelClick to edit Master text styles – Second level Third level – Fourth level » Fifth level Strategic Outcome Orientated Goals  Stakeholder Client Goals

13 Click to edit the outline text format Second Outline Level  Third Outline Level Fourth Outline Level  Fifth Outline Level  Sixth Outline Level  Seventh Outline Level  Eighth Outline Level Ninth Outline LevelClick to edit Master text styles – Second level Third level – Fourth level » Fifth level KEY PERFORMANCE AREAS Statement of Financial Position

14 Click to edit the outline text format Second Outline Level  Third Outline Level Fourth Outline Level  Fifth Outline Level  Sixth Outline Level  Seventh Outline Level  Eighth Outline Level Ninth Outline LevelClick to edit Master text styles – Second level Third level – Fourth level » Fifth level KEY PERFORMANCE AREAS Statement of Financial Position Capital Funding: 2011/2012R49,5 million (received)2012/2013R32 million KfW (via DBSA) Soft Loan: Repayment start in Dec 2014Repayable in 41 half yearly instalments

15 Click to edit the outline text format Second Outline Level  Third Outline Level Fourth Outline Level  Fifth Outline Level  Sixth Outline Level  Seventh Outline Level  Eighth Outline Level Ninth Outline LevelClick to edit Master text styles – Second level Third level – Fourth level » Fifth level KEY PERFORMANCE AREAS Statement of Cash Flow

16 Click to edit the outline text format Second Outline Level  Third Outline Level Fourth Outline Level  Fifth Outline Level  Sixth Outline Level  Seventh Outline Level  Eighth Outline Level Ninth Outline LevelClick to edit Master text styles – Second level Third level – Fourth level » Fifth level KEY PERFORMANCE AREAS Statement of Financial Performance

17 Click to edit the outline text format Second Outline Level  Third Outline Level Fourth Outline Level  Fifth Outline Level  Sixth Outline Level  Seventh Outline Level  Eighth Outline Level Ninth Outline LevelClick to edit Master text styles – Second level Third level – Fourth level » Fifth level KEY PERFORMANCE AREAS Statement of Financial Performance Increase in Staff cost mainly due to fact that in 2011 RHLF did not have a COO plus appointment of operational staff to add capacity in development impact monitoring Consulting fees: general provision for R1,5mil on Voucher program

18 3/20/12 GOVERNANCE

19 3/20/12 CORPORATE GOVERNANCE Board of directorsComposition of the Board Full and effective control over the company Monitors managementDecisions on material matters are in the hands of the board. Six non-executive directorsNon-executive chairpersonOne Executive

20 3/20/12 Governance – Board and Committees

21 3/20/12 Governance: Board Committees BOARD OF DIRECTORS HR ETHICS & REMUNERATION COMMITTEE CREDIT AND DEVELOPMENT COMMITTEE AUDIT AND RISK COMMITTEE INTERNAL AUDIT

22 Click to edit the outline text format Second Outline Level  Third Outline Level Fourth Outline Level  Fifth Outline Level  Sixth Outline Level  Seventh Outline Level  Eighth Outline Level Ninth Outline LevelClick to edit Master text styles – Second level Third level – Fourth level » Fifth level Concluding Remarks 2012/13 outlook remains uncertain due to implications of global economy uncertainties If Government initiatives for job creation materialise, and general economic conditions improve: High levels of indebtedness remain a major concern in our target market Then RHLF will have resources to increase lending over the MTEF periodBut will need more funding beyond MTEF period to support business growth to meet incremental housing needs in rural areas and new settlements

23 3/20/12 Thank You


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