National Housing Finance Corporation SOC Limited (Apr 2023)

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Filename NHFC-full-report-April-2023.pdf
Filesize 210.86 KB
Version paid report
Date added April 19, 2023
Downloaded 3 times
Category Credit Rating Reports, Financial Institution
Tags South Africa

NHFC is a South African government-owned financial institution that was established in 1996. A business case to transform NHFC to the Human Settlements Development Bank (HSDB) was finalised in Jan 2020. However, the government process has been slow and the HSDB Bill is yet to be finalised. The proposal for the establishment of the HSDB has received approval from the Social Economic Impact Assessment System (SEIAS) Cluster, but before it can be presented to the cabinet, there are several pending tasks that need to be completed. The Department of Human Settlements is responsible for completing these tasks, which include drafting the necessary legislation, securing funding, obtaining approval from the South African Reserve Bank for the proposed name, promulgating the Act, scheduling under the PFMA, and ensuring that the tax-free status of the NHFC is extended to the HSDB. The business case for the capitalisation of the HSDB is currently being considered by the National Treasury, but all decisions are contingent upon the preparation of the draft legislation. Positively, there has been some progress in the management and governance structures, including a new CEO, a new board and establishing a project management office to help the transition.