This research report is an account of the results of investigations into the critical analysis of the
private sector’s Financial Sector Charter (FSC) and the government’s Community Reinvestment
Bill (CRB) in comparing their anticipated advantages towards housing and housing finance for
the low income sector in South Africa. 2 stages of data gathering were adopted; namely
interviews with 5 Banking Council officials and 5 Ministry of Housing officials and a
questionnaire survey with representatives from SACC, NALEDI, SANGOCO, COSATU and
SANCO which are independent organizations, which amongst other duties, generally assist in
serving the social needs of disadvantaged individuals in the society. Multi-criteria analysis and
SWOT analysis techniques were used to analyse the qualitative data.
Results showed that the most critical aspect of the FSC is the establishment of risk sharing
responsibilities between the government and the private sector, which still needs to be resolved.
The private sector views the CRB as a forceful mechanism with strict requirements, which would
result in the private sector’s participation in provision of housing finance to the low income sector
to be ineffective as they would be acting unwillingly. Independent organizations view the CRB as
being lenient on the private sector. Evaluation of the CRB and FSC showed that ultimate success
lies in the combined efforts between the government and private sector, which in turn lies in the
settling of the Memorandum of Understanding on-going negotiations.
Key recommendations for addressing the low income sector housing and housing finance
problems include; cultural adjustment of the banks towards low income sector individuals,
formation of partnerships in dealing with housing and housing finance problems, establishment of
efficient secondary property markets through amenities provision and infrastructure upgrading,
identification of effective default management models, accommodation of new intellectual ideas
and provision of different mortgage securities by banks and the government.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:wits/oai:wiredspace.wits.ac.za:10539/6439 |
| Date | 25 February 2009 |
| Creators | Nyandoro, Edith |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
| Format | application/pdf |
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