Supply Chain Management & Risk Management

Overview of NHFC

• The National Housing Finance Corporation (NHFC) operates as a Development Finance Institution (DFI) established in 1996, aimed at enhancing access to affordable housing finance for low- to middle-income households in South Africa.
• NHFC is a Schedule 3A public entity, wholly owned by the Government and represented by the Minister of Human Settlements.

Reporting and Compliance

• The Integrated Annual Report covers the NHFC's performance and financial overview from April 1, 2022, to March 31, 2023.
• Compliance with the following regulations is essential:
  • Public Finance Management Act, 1999
  • Companies Act, 2008
  • King IV Code on Corporate Governance
  • National Treasury Regulations
  • Generally Recognised Accounting Practice (GRAP)

Risk Management

• Key risk management components include credit risk management, business continuity management, and compliance management.
• COVID-19's impact on credit losses is an important aspect of the risk analysis.

Internal and External Stakeholders

• Internal stakeholders include the Board of Directors, Executive Committee, and employees, each with specific functions in governance, strategy implementation, and operational execution.
• External stakeholders include regulatory bodies, provincial governments, private sector financial institutions, and low-income households, all playing crucial roles in the value chain.

Financial Sustainability and Development Mandate

• NHFC aims to balance its developmental goals with financial sustainability, leading to a self-sustaining model that requires capital injections for increased delivery capacity.
• The organization focuses on catalyzing private sector involvement by coordinating financing for projects and utilizing blended finance solutions to overcome market barriers.

Leadership and Strategic Direction

• Key leadership change: Azola Mayekiso appointed as the first female CEO, marking a significant milestone for the organization.
• The Chairperson's overview emphasizes ongoing challenges, including economic instability, but also reflects on positive developments within the organization amid these challenges.

Future Outlook

• The NHFC is positioned to leverage its operational model as a wholesale financier to support retail financiers.
• The report includes forward-looking statements regarding potential strategic and operational developments for stakeholders' consideration.