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ANNUAL REPORT 2010
Morgan Pillay
14 OCTOBER 2010
CONTENT
1. The mandate
2. The year in perspective
3. Development performance 2009/10
4. Financial performance 2009/10
5. Breakdown of reasons for poor performance
6. Key strategic issues
7. Conclusion
THE MANDATE
NURCHA ensures the availability of bridging
finance to small, medium and established
contractors building low and moderate income
housing and related community facilities and
infrastructure
THE YEAR IN PERSPECTIVE
Poor economic trading conditions Slow growth in business
Contracts signed reduced by 14%
Houses built improved by 7%
Value of loans increased 26%
Infrastructure projects completed increased by 71%
Mobilized private sector funding R135m High cost of financing
Persistent non-payment from government departments
THE YEAR IN PERSPECTIVE (cont)
Government recapitalisation of R250m did
not materialise
Expanding geographical footprint and
coverage improved
Alignment with intermediaries
strengthened and 30 % shareholding
finalised
HOUSES IN APPROVED LOANS AND COMPLETED HOUSES
LOAN AND PROJECT VALUES(R MILLIONS)
COMPLETED HOUSES/SITES
NUMBER OF HOUSES/SITES IN APPROVED LOANS
NUMBER OF PROJECT LOANS APPROVED BY PROVINCES
VALUE OF LOANS FINANCED(R MILLIONS)
VALUE OF PROJECTS FINANCED(R MILLIONS)
ANNUAL EMPOWERMENT STATUS
Apr 08-Mar 09 Apr 09-Mar 10
Value of loans (Actual)
Value of loans (Actual)
Number of contractors 111 98
Number of 1st time applicants 59 70
Black owned 86% 301,474,724.16 80.5% 268,655,382.11
Non BEE 14% 111,435,775.10 19.5% 286,158,888.34
TOTAL 100% 412,910,499.26 100% 554,814,270.45
Male owned 97% 400,267,815.26 78.3% 484,791,495.84
Female owned 3% 12,642,684.00 21.7% 70,022,774.61
TOTAL 100% 412,910,499.26 100% 554,814,270.45
Emerging 80% 288,654,088.21 73% 231,476,772.11
Established 20% 124,256,411.05 27% 323,337,498.34
TOTAL 100% 412,910,499.26 100% 554,814,270.45
KEY STATISTICAL INFORMATION YEAR ENDED 31 MARCH 2010
2010 2009 % INCREASE/
(DECREASE)
R’000 R’000
Income from operations 43,012 49,259 -12.7
Administration expenses 40,058 36,089 11.0
(Deficit)/surplus for the year -18,826 3,149 -697.8
Loans for construction projects 403,527 402,076 0.4
Provision for losses 51,384 36,774 39.7
Bank loans to finance projects 152,406 106,211 43.5
CAPACITY REPORT per programmeAS AT 31 MARCH 2010
CONSOLIDATED NURCHA EMERGING INFRA-
STRUCTURE
ESTABLISHED SUBSIDY &
AFFORDABLE
EMERGING SUBSIDY
Consolidated capacity
544,464 361,766 7,118 80,877 94,704
Loans granted & committed
(334,395) (111,000) (55,051) (82,380) (85,963)
Pending loans (84,454) (19,850) 0 (64,604) 0
FMO loan repayment
(30,400) 0 (30,400) 0 0
Top-up by NURCHA
0 (144,440) 78,333 66,107 0
95,215 86,476 0 0 8,741
BREAKDOWN OF REASONS FOR POOR PERFORMANCE
Failure by employers to allocate tenders
Late payments by employers especially state
organs (government departments and SOE)
Reliance on final accounts and retention money
to settle the debt
Budgetary constraints by employer departments
General state of the economy. Commercial
banks not willing to grant loans to end users
BREAKDOWN OF REASONS FOR POOR PERFORMANCE (cont)
Lack of loan facilities at concessionary
rates
Continued decrease of own funds which
would be used to leverage loans from the
private financiers
KEY STRATEGIC ISSUES
Alignment to Outcome 8
Need to raise additional funding from the State
Non-payment from government departments
hampering business growth
Leverage regional footprint and capacity
Technical assistance window must be considered to
foster integrated human settlement planning
CONCLUSION R 10 BILLION
VALUE OF PROJECTS SUPPORTED SINCE INCEPTION
NURCHA
“GOING BEYOND FINANCE”