housing financing - a public -private partnership–

Annual Conference and General Meeting of African Union for Housing FinanceJoaquim Chissano International Center

8th to 10th of September 2009, Maputo - Mozambique

1

HOUSING FINANCING- A PUBLIC -PRIVATE PARTNERSHIP–

TRANSFORMING THE FHF IN A CREDIT INSTITTUTION

BY: ADRIANO MALEIANE9th Septemeber 2009

Annual Conference and General Meeting of African Union for Housing FinanceJoaquim Chissano International Conference Center


Macroeconomic Fitting

1.Interest rate and inflation Structure




2.Deposit Structure




3. Bank Credit granted for Housing at National Level (in 1000MT)




Housing Credit in Total banking credit-1000MT



The Role of the Fund for Housing in this area

It is a public body created in 1995 with juridical rights, administrative, financial and patrimonial autonomy. It is responsible for executing government policy for social housing promotion



The Role of the Fund for Housing in this area

– To promote construction of houses for social habitation– To improve credit interest rates granted by banks for

housing construction – To grant credit for housing construction, repairing and

extension for citizens whose their household income is not over the minimum national salary



Sources of Revenues

a) Contracts - Program

Budgeted amount Budgeted amount (100%)Amount to disburse State (75%)Amount to disburse -fund (25%)Disbursed amount

ICP Ano - 1996 36,400.00 27,300.00 9,100.00 36,400.00

IICP Ano - 1998 48,000.00 36,000.00 12,000.00 48,000.00

IIICP Ano - 2000 110,000.00 82,500.00 27,500.00 110,000.00

IVCP Ano - 2005 478,583.73 358,937.80 119,645.93 478,583.73

TOTAL 672,983.73 504,737.80 168,245.93 672,983.73

LIST OF CONTRACTS SIGNED BY THE GOVERNMENT FFH

ORD

STATE CONTRACTS /PROGRAMS



Sources of Revenuesb) Other revenues

82% a 91% of effective revenues come from building alienation



FHF Revenues weight in the National Budget

• Revenues Average: (Contracts, program and other revenues 2006-2008):– 575.587.860 MT

• National Budget Revenues Average 2006-2008:– 32.774.333.333 MT

• Weight= 0.0175 = 1.75%



Fund for Housing activities evolution



Why Transformation?– SustainabilityThe main source of revenues for the Fund for Housing will finish



Why Transformation?

– Incoming Little flexible statutes in order to satisfy the market whose beneficiaries

are groups of populations with low income, low qualifies labour force and young couples.

– Necessity of a development funding institution turned to promotion of developing lines and increase the capacity for resources mobilization.



SWOT AnalysesStrengths•Conversion of assets into capital•Innovation concept•Inflation tending to lower

ThreatsCompetitiveness in regional integration framework

Weaknesses•Irregular availability of funds

•Difficulties on mobilizing long term funds

•Funds largely from the StateOpportunities

•Possibility of expanding to new business areas• District as development pole•High demand for housing credit



Scenario I – Creation of a Housing Credit - HCS

• Advantages:– High specialization on housing credit (credit for housing, for

acquiring construction material and other infrastructures)– Increasing of business volume due to other areas incorporation– Current Fund Patrimony primness for social capital execution

• Disadvantages:– Additional financial effort– A Financial Society does not have the same prestige as a Financial

Bank



Scenario II – Creation of banking institution

• Advantages– High capacity to mobilize funds for credit grant– It is possible to diversify activities without harming the main objective– The State only needs to endow once the constitutions funds

• Disadvantages There are no remarkable disadvantages



– A: 100% Pertaining to the State or– B: Mixed (PPP)

• 51 % Pertaining to the State 49% Private

Property Form



Housing Policy, an important pre-requirement. Some inputs:

– Autonomization of Social Providence Fund for Civil Servants

– Creation of stimulation for personal construction, funding research for reduction of construction material price

– Creation of stimulation for housing credit for individuals and companies for real estate development and management



Inputs for Housing Policy

– Foment of land concession policy for housing and commercial aims to individuals and institutions, funding the respective infrastructures

– Affectation of a percentage on the total State revenues for social housing funding and land infrastructures.

– Stimulate investigation by education institutions on housing models adjusted to local conditions.



With housing policy approval, institutions funds would have the following structure:

• Social Providence for civil servants – • Depositor of State funds intended to development• Funds for Contracts Program for social housing• Own funds;• Emission of obligations;• Various Donations.



THANK YOU VERY MUCH

housing financing - a public -private partnership–

Documents