Construction and property LEDA runs training for artisans in the building sector. Sector Insight More than 10 000 housing units have been pledged by provincial government.
Military veterans housing. Image: Housing Development Agency
he Provincial Government of Limpopo has built more than 320 000 houses since 1994. A budget of R3.9-billion has been assigned by National Treasury for the Limpopo Academic Hospital. Clinics are also being built, providing more work opportunities in the construction sector. A start has been made on a provincial theatre, with R15-million allocated to planning. A commitment has been made to build 10 456 housing units by the end of the 2020/21 financial year, a figure that includes a rollover of nearly 4 000 from the previous year. This represents a further opportunity for contractors in the construction sector. The Enterprise Development and Finance Division of the Limpopo Economic Development Agency (LEDA) offers loans to businesses in the construction and property sector and runs specialised training in vocational skills such as bricklaying, plastering, carpentry, plumbing, electrical and welding. The Risima Housing and Finance Corporation, another division of LEDA, is helping citizens of the province to become homeowners. Since 2014, Risima has assisted 1 037 beneficiaries with loans of up to R1.5-million. The gap market – people who earn too much to qualify for social (RDP) housing but don’t earn enough to be granted bonds – is a hot topic. Opportunities exist, but the risk profile is different. A new association caters for this subsector, the South African Affordable Residential Developers Association (SAARDA).
Online Resources Black Business Council in Built Environment: www.bbcbe.org 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
LIMPOPO BUSINESS 2020/21
Risima has introduced the Finance Linked Individual Subsidy Programme, for those earning between R3 501 and R15 000 per month. Risima and the Department of Cooperative Governance, Human Settlement a n d Tr a d i t i o n a l A f f a i r s (COGHSTA) distribute grants to cover a deposit or to make up the shortfall between an asking price and what the applicant can afford. A non-mortgaged financial product assists government employees to get a foot on the property ladder. Risima is also exploring cooperation with mining houses such as Exxaro, Amplats and Northam at Thabazimbi. Thavhani Mall is operating in Thohoyandou in a bigger development called Thavhani City. The 27ha site will eventually include an office park, automotive-related businesses, private healthcare, a library, an information centre and a sports stadium. Its anchor retail tenants include Woolworths, Edgars, Pick n Pay and SuperSpar. The partners in the R1-billion project are Thavhani Property Investments, Vukile Property Fund and Flanagan & Gerard Property Development. ■