The Gauteng Partnership Fund (GPF) is looking for financial partners to support entry-level property entrepreneurs to participate in the affordable housing market in Gauteng.

GPF investment officer Katleho Nchapha says the fund also requires increased capital to assist in obtaining new clients. “We currently have about 75 clients under the Entrepreneur Empowerment Property Fund (EEPF), and we are looking to increase this number to 100 clients.”

Several of these clients whose projects are nearing completion are coming back as repeat clients of the GPF.

The GPF undertakes various strategies to garner new clients, which includes advertisements in newspapers and on the radio, as well as hosting seminars to which it invites industry stakeholders, key players and emerging contractors to discuss GPF projects.

Focus on Entrepreneurs
The GPF uses a closed EEPF fund – launched in 2010 – to promote the participation of companies owned by people from previously disadvantaged groups in the affordable-rental property market.

The EEPF is limited to prospective participants who are invited yearly through public tender.

However, Nchapha notes that the “ultimate beneficiary of the fund is the person who now has access to the affordable rental accommodation”.

Low-income earners who earn between R3 500 and R15 000 a month can rent these houses, he says.

“Our mandate is to attract funding for the development and construction of affordable housing. We provide soft loans to developers, with the loans featuring enhanced benefits in order to make it attractive for conventional banks and financiers to finance affordable housing,” says Nchapha.

Developers under the EEPF must also meet certain criteria to be considered for a GPF project. The GPF will consider any project that includes a minimum of 15 residential units to a maximum value of R15-million.

“We believe this is a good size for a project to start with for the emerging developers because it is manageable and will offer the market up to 40 residential units at an affordable price,” adds Nchapha.

The companies must also demonstrate to the GPF that they have the technical resource capacity to successfully complete the project and efficiently manage the property thereafter.