Banker S.A. January 2015 - Edition 12 . | Page 8

Human unsettlement T Cas Coovadia GOVERNMENT WANTS TO IMPROVE THE LIVELIHOODS OF ALL OUR PEOPLE, BUSINESS WANTS TO CONTINUE DOING RESPONSIBLE AND PROFITABLE BUSINESS FOR YEARS TO COME AND LABOUR WANTS TO REPRESENT WORKERS TO ENSURE GOOD WORKING CONDITIONS. 6 his edition of Banker SA brings us to the end of a tumultuous year for South Africa! The year 2014 saw the fifth national elections since the advent of our democracy in 1994. We also celebrated 20 years of democracy, with joy and trepidation. We marked the first anniversary, on 5 December, of the passing on of our beloved leader, Nelson Rolihlahla Mandela, and we cherish his life and memory while trying to live by the values he instilled in our psyche. This edition also focuses on the serious problems we have in housing our people. We also look at the progress we are making in addressing this problem, with particular reference to the outcomes of the Annual Banking Summit, which had human settlements as its theme. The Banking Summit was preceded by the Human Settlements Summit, convened by the Minister of Human Settlements, the Hon. Lindiwe Sisulu. The Summit put back on the table the imperative for a social compact between the numerous stakeholders in the human settlement value chain. These include financiers, construction companies, municipal government, consumers, government and others. There was significant support for this initiative, with a large number of organisations signing the contract. The Banking Summit, convened on 31 October 2014, looked at various matters related to human settlement. The following are some of the pertinent outcomes: • Fast-track the release of appropriately located land, owned by the state, for human settlement development; • Look at different building technologies to reduce the cost of construction and ensure environmentally sustainable products; • Promote different housing tenure options, including rental and social housing; • Emphasised the importance of compact and that it is imperative that all parts of the value chain work together; • Emphasised the importance of enabling municipalities to the critical role they must play in enabling delivery; • Encouraged ongoing engagement on an appropriate regulatory environment to enable construction and financing, including appropriate subsidies, addressing the “gap market” and enabling private sector financiers to go down market; • Address the spatial development challenge, to break from the “apartheid” development patterns; and • Address the infrastructure needs to enable building of houses and enabling integration of communities. The Banking Association South Africa committed its members to intensify efforts to address the human settlement challenge. We are a signatory to the Social Contract and will work with other stakeholders to play a decisive role in addressing this critical problem. Our country can, 20 years into our democracy, boast a number of significant achievements. A report from Goldman Sachs, alluded to in an earlier edition of these magazines, states: • GDP almost tripled from $136bn to $400bn today; • Inflation fell from an average of 14% from 1980–1994 to an average of 6% from 1994–2012; • Gross Gold and FX Reserves rose from $3bn to a prudent $50bn today; • Tax receipts of R114bn from 1.7m people rose to R814bn from 13.7m people; • In the last decade, a dramatic rise in the middle class with 4.5 million consumers graduating upwards from the lower (1–4) Living Standards BANKERSA | Edition 12 MD Message_1.indd 6 2014/12/18 9:56 AM