MEC for Local Government and Housing, Richard Dyantyi

Councillor of Langa, Councillor Gope,

Chief Executive of the FNB, Mr. Micheal Jordaan

FNB Executive: Francois Pienaar

Distinguished Guests

Ladies and Gentlemen:

In a word we have arrived.

Today marks the launch by the First National Bank of a project to build 3000 bonded houses as part of Phase 2 of the N2 Gateway project. The houses will be built in Joe Slovo and Delft settlements, which form part of the greater Langa township. In a project that will benefit those earning between R3 500 and R7 500 their prices will range R150 000 to R250 000 per unit.

A few years ago this mixture of bonded houses with rented and subsidized BNG houses was unthinkable. For some it was even unworkable. But now it is happening.

But what is more gratifying to me is that the lead institutions in driving the economy of our country are at the forefront of this sterling progress, demolishing in that unfounded preconceptions and fears.

To ensure that the houses are affordable, FNB has partnered with Government which will provide subsidies to qualifying individuals as part of its on-going commitment to house the nation. Hence, the FNB’s total investment in the N2 Gateway would now be in excess of R900 million for the building of more than 2 500 units.

Of course it was not easy to get here. We firstly had to struggle and overcome the difficulties we had among ourselves.

Who would forget, for example, that initially banks withdrew from making housing finance available and accessible to low to medium income households and that in consequence as government we had to haul out the threat of the Community Re-investment Act. To obviate the threat we then had to agree on the Financial Sector Charter which created a real climate of engagement amongst all of us, namely, banks, government, labour and communities. A key achievement in that regard was an agreement that related to banks making targeted or equity investments in projects in areas where gaps or blockages in economic development have not been adequately addressed by financial institutions. This therefore meant the financing of or investment in both low-cost and affordable housing.

But an advantage for us which is indicative of the extent to which the relationship has grown and trust has developed is the fact that the FNB is not merely making efforts at meeting its own Financial Services Charter targets. In making the huge investment here on the N2 it is making the statement that indeed our communities need to be integrated. It is demonstrating the belief it shares with us that those who make our economy run, the working people, must stay in places of close proximity to the areas of their work. It is showing that we need to break the geographical concentration of poverty so that we can all share in the benefits of a growing economy.

This is the great promise of things to come and it is no exaggeration to say that finally we have a model in housing on how to eradicate the bankrupt legacy of apartheid.
 

The investment and the confidence shown therefore is not an end in itself. It aims to achieve the goals of poverty reduction and societal integration both of which are critical for our development and economic growth. This is the goal that the FNB has placed itself in service of with its skilled workforce, capital resources as well as infrastructure and technology.
 

For the City of Cape Town this means a tremendous boost in the efforts to deal with the massive immigration of people seeking employment and other opportunities particularly from the Eastern Cape. This then is another reason why the launch of the project is so significant. Here today we are witnessing the success of co-operation between governments, the private sector and the local community. We see with our own eyes what is being done to develop and foster sustainable and integrated human settlements at the local level, and the potential that exists for even greater achievements to take place.

We as government know too well that on our own we cannot succeed. We also know too well that all the three spheres of government need to be involved and work together for developments of this kind to take place. This includes community members too whose lives would, especially in this case, be briefly inconvenienced by construction and resettlement.

I am very proud of the achievement we have made together considering especially that when you come to Joe Slovo from the direction of the airport, unspeakable squalor was visible. Shameful living conditions were shaming all of us who are in government let alone the suffering and pain of our people who had to rear children in an environment where they saw a future that was bleak and dreary. The partnership with banks such as the FNB finally changes all of that and gives us a glimpse into a future where 'all shall have housing, security and comfort'. 
 

This is not the only project where we are collaborating with the bank. The First National Bank has its own project at Protea Glen in Soweto where, at its conclusion, the project will provide R300 million in the form of bridging finance to the developer for the development of 3 035 housing units.  
 

We commend FNB for its sterling work. I am glad it responded to our call.

I am happy and glad too that the people of Langa allowed us to come and experiment this partnership here. I assure you that you will not be disappointed with us and that the final product of the project will indeed be what we promised you.

Years ago, before liberation, Chief Albert Luthuli already warned us that people need to see the fruits of their freedom. So he instructed us saying:

You dare not fail them for failing them is failing the best in life - LIBERTY, for which they and others throughout the ages everywhere have sacrificed all to secure it and preserve it. We young fighters for freedom in this age stand between these heroes of freedom and posterity and our bounden duty is to defend and preserve this divine heritage – liberty, and all it stands for - and hand it unimpaired to generations.
 

This is the promise that we will keep. We will never fail you, our people!

I thank you.