THEMBI SIMELANE | Building a nation one home at a time

This year the NHFC celebrates its 30th anniversary. It is a significant milestone for an institution that has played an important role in expanding access to affordable housing finance and supporting the development of sustainable human settlements across South Africa.

This milestone coincides with the 30^th anniversary of the adoption of the constitution of the Republic of South Africa. Section 26 of the constitution enshrines the right to adequate housing; it enjoins the state to implement reasonable legislative measures within its available resources to achieve progressive realisation of this fundamental human right.

When the NHFC was established in 1996, South Africa was still in the early years of democracy. The country faced a housing crisis shaped by decades of apartheid spatial planning and exclusion. Millions of South Africans had been denied access to property ownership, credit and economic opportunities. While democracy brought political freedom, the challenge of transforming the housing landscape remained immense.

The government recognised that the housing challenge could not be solved through public funding alone. There was a need for an institution that could mobilise investment, support housing development and help bridge the gap between what many South Africans could afford and what traditional lenders were willing to finance. The NHFC was established to fulfil that role.

Three decades later, the impact of that decision is clear. The NHFC has facilitated more than R50bn in housing finance and helped more than 500,000 households gain access to housing opportunities. These numbers tell an important story, but they only reveal part of the institution’s contribution. Behind every housing unit financed is a family whose circumstances have changed. Behind every successful development is an opportunity created for individuals, communities and local economies.

Housing is about more than bricks and mortar. It is about security, dignity and economic participation. A home provides stability for families and creates a foundation for future generations. It enables people to build assets and participate more fully in the economy. It is one of the most powerful tools available to address inequality and create inclusive growth.

As we celebrate this milestone, we must also acknowledge that South Africa’s housing challenge remains significant

Over the years, the NHFC has helped unlock housing developments in communities across the country. It has supported innovation in affordable housing finance and demonstrated the important role that development finance institutions can play in advancing national priorities.

The uptake of First Home Finance has played a critical role as one of the bespoke government housing subsidies of the NHFC aimed at helping first-time home buyers in the “gap market” purchase or build a home. It provides a once-off financial grant ranging from R38,878 to R169,264 depending on your income. The product has been expanded to cover rural areas, with applicants with Permission To Occupy (PTO) being allowed to apply for First Home Finance, and we couldn’t do this alone without leveraging the strategic partnership we have with traditional leaders.

As we celebrate this milestone, we must also acknowledge that South Africa’s housing challenge remains significant. Rapid urbanisation continues to place pressure on cities and municipalities. Demand for affordable housing continues to exceed supply, while economic pressures make it increasingly difficult for many households to access finance and enter the property market.

The question before us is therefore not whether progress has been made. The progress is visible across the country. The question is how we accelerate that progress.

This requires continued collaboration between government, the private sector, financial institutions, developers and communities. It requires innovation and investment. It requires institutions such as the NHFC to continue adapting to changing circumstances while remaining focused on their core mandate of expanding access to housing finance.

The NHFC’s 30th anniversary programme provides an opportunity not only to reflect on the institution’s achievements but also to look towards the future. Initiatives such as the NHFC Scholarship Fund, the 30 Stories campaign and the digital archive reflect a commitment to preserving the institution’s legacy while investing in the next generation of housing and built environment professionals.

If the NHFC’s legacy is measured by the lives it has helped to transform, then its story is ultimately one of people. It is a story of families, communities and opportunities created. It is a story of dignity restored and futures built. Most importantly, it is a story of a nation being built, one home at a time.

• Thembi Simelane is the minister of human settlements.