CHAIRMAN’S REPORT TO THE ANNUAL GENERAL MEETING OF THE AFRICAN UNION OF HOUSING FINANCE (AUHF) HELD IN JOHANNESBURG, SOUTH AFRICA

8 SEPTEMBER 2011

INTRODUCTION 

Ladies and Gentlemen, good morning.  I wish to warmly welcome you all to the Annual General Meeting of the AUHF held here in Johannesburg, on 8 September 2011.  I believe we have twenty members present – as such, we have a quorum and may proceed. 

PROGRESS REPORT – ACTIVITIES SINCE SEPTEMBER 2010

HANDOVER TO FINMARK TRUST (November – December 2010)

As we agreed at our AGM last year, FinMark Trust was appointed to provide strategic and administrative support to the AUHF, taking over from Mrs Felicity Cawley.  The handover to FinMark Trust was done before the end of December 2010 deadline.  Mr Coovadia met with Mrs Cawley and Mrs Rust at the offices of the Banking Association of South Africa to define the terms of the handover.  This involved a few details:

 

• Bank account: The AUHF’s bank account has been moved to the Killarney, Johannesburg Branch of FNB, so that it is accessible to the Banking Association of South Africa, which manages the AUHF accounts.  Further, internet banking facilities have been secured to reduce the need for printed cheques and expedite payment processes.
• Contact details: Some of the contact details of the AUHF have changed to reflect the new Secretariat arrangements.  email  AUHF.kecia@iafrica.com / cell +2783-785-4964 / tel. +2711-447-9581 / fax +27-86-685-7041.  For administrative matters, contact Andrea van der Westhuizen at FinMark Trust’s main offices, tel. +2711-315-9197 or email andreaw@finmark.org.za
• Domicilium of the AUHF:  This has been formally changed to the address of the Finmark Trust – that is,  AUHF, c/o FinMark Trust, PO Box 61674, Marshalltown 2107, South Africa.

FINMARK TRUST CONFERENCE ON THE HOUSING FINANCE ACCESS FRONTIER (March 2011)

In March 2011, the FinMark Trust held a conference on the use of FinScope data to determine, among other things, the demand for housing finance.  The morning of the second day was dedicated I am told to housing finance.  Because of FinMark Trust’s relationship with the AUHF, AUHF members were explicitly invited to attend – the conference was free.  A few did participate – from the Botswana Housing Corporation, the Tanzania Mortgage Refinance Company, and CBZ Bank in Zimbabwe.  The conference offered a useful opportunity for members to convene between our annual events.  Hopefully we will be able to participate in larger numbers in more of these events in the future.

WHARTON SCHOOL HOUSING COURSE (April 2011)

In April 2011, we lent our support to the African Housing Finance Workshop, a one week course held by the International Housing Finance Programme of the Wharton School (University of Pennsylvania), at the Kenya School of Monetary Studies.  The course was sponsored by the World Bank and the FinMark Trust’s Centre for Affordable Housing Finance in Africa.  The event was a success and a number of AUHF members attended.  Our profile at the event also led to a new member joining the AUHF.  We are sure this partnership will continue to bear fruit into the future.

MEETING WITH SHELTER AFRIQUE (April 2011)

In April 2011, I had the occasion to be in Nairobi, Kenya on the invitation of Mr Alassane Ba, the MD for Shelter Afrique (S’A). I was joined and well supported by Mr Vinson Hailulu. We also had company of the Deputy Cabinet Minister under which NHE falls. My invitation to Nairobi was to present AUHF and to discuss the possibility of Shelter Afrique becoming a member.  I must say we were most welcomed by our host, Mr Ba and his team. After we made our presentation came our turn to learn about Shelter Afrique.

Shelter Afrique is an organization formed through a Public Charter and has membership of forty-two (42) countries across Africa. Members subscribe for shares in S’A and vote according to their shareholding. S’A finances the development of houses and related buildings and supporting infrastructure. They have supported projects in Kenya, Namibia, Zambia, Zimbabwe and a lot many countries in West Africa. S’A will be embarking on a number of road shows especially in Southern Africa to create awareness for their business.

I am told they are working hard to realize a geographically balanced financing portfolio. I was informed they have as their consultant at DBSA a certain Mr Mandla Gantso through whom they hope to make inroads into Francophone Africa. S’A was planning to hold a symposium from 13^th to 16^th June under the theme “Mortgage Industry in Africa”

I had the liberty to invite Shelter Afrique to our Conference and AGM and I am glad they are attending. At the end Mr Ba expressed the desire for S’A to sign up for membership of AUHF and I am sure they will do just that before they return to Kenya at the end of this week. We mutually agreed to explore the possibility of synchronizing our conferences and symposia for synergistic and mass appeal drive.

2011 AUHF AGM IN SOUTH AFRICA (September 2011)

By the time I read this, we will have just had our Annual Conference, with one more event, the site visit to Cosmo City, to follow tomorrow.  I am sure we have all enjoyed a hectic but productive week.  A few statistics on this year’s event:

• Total number of delegates: 83
• Number of AUHF members represented: 20
• Number of speakers: 20
• Number of non-AUHF delegates: 50
• Number of countries represented: 18

The secretariat has worked hard to prepare for this conference and AGM and for that I would like us all to warmly applaud them under the most able headship of Kecia Rust. Through the secretariat we had an array of speakers and delegates from different countries and organizations. This is indeed positive, as we have all been exposed to the breadth of expertise beyond our normal access.  It is my hope that the participation of some will lead towards their future interest in becoming members.  Specifically, the Shelter Afrique, FMO, and Select Africa are all organisations that have expressed interest in membership with the AUHF.  I hope the success of our conference will  encourage them to join our union.

We must express gratitude to First National Bank for their generous sponsorship of the cocktail function on Monday evening. We are also grateful to our South African hosts, the Banking Association of South Africa, the Home Loan Guarantee Fund, the National Housing Finance Corporation, and the Mpumalanga Economic Growth Agency, for their sponsorship of the dinner last night.

There is much to think about following these past two days of input from the various speakers.  I am sure you all have many ideas for how you might implement some of what you’ve learned in your countries.  I hope our group discussions, which we’ll have as part of this AGM, will enable us to identify a set of clear strategies for action in the next twelve months.  I know our Secretariat is up to the task.  I would urge you all to think creatively about how we might use our collaboration to further our individual interests in our own local contexts.

RELATIONSHIPS WITH OTHER REGIONAL BODIES

We are delighted that four important development finance personnel attended our conference this year as speakers. 

·         Ms Bonnie Hewson, Chief Urban Finance Branch, UN Habitat, is delivering the keynote address on a credit enhancement programme that she’s putting together with the Cities Alliance, World Bank, Habitat for Humanity International and Millennium Cities Initiative

·         Mr Gerhard Engel, FMO, is participating in a panel on housing finance investments in Africa

·         Mr Friedemann Roy, Senior Housing Finance Specialist, World Bank, will speak on prudential rules for housing finance in Africa

·         Mr Samuel Maimbo, Lead Financial Sector Specialist for Africa at the World Bank, will speak on mobilizing housing finance investments in Africa – this is one week before he launches his book at a conference in Ethiopia. 

These and the many other speakers that joined us, all funded their travel and accommodation themselves, and have asked for no honorarium.  It is my hope that this engagement will lead to greater collaboration in the future.

The AUHF continues its membership in the International Union for Housing Finance.  Kecia Rust is liaising activity with the IUHF’s Economic Advisor, Ms Paloma Repullo and feeding AUHF news and information for international dissemination through the IUHF. 

SECRETARIAT PROGRESS

The FinMark Trust has been working with the AUHF, providing Secretariat services and strategic support, since the AGM last year.  Their contract was officially signed on 26 January 2011, but extends from 1 November 2010 until 31 October 2011.  At our Exco meeting earlier this week, we were provided with the following feedback:

 

In addition, the following specific projects were outlined for 2010/2011:

 

 

MEMBERSHIP

The membership of the Union stands at 34, made up of 33 institutions from 15 countries and one honorary member.  Annexure B provides the up to date membership list.

NEW MEMBERS & EXPRESSIONS OF INTEREST

Since our last AGM, we have five new members. 

·         Housing Finance Bank Ltd., in Uganda, joined as a member in January 2011.  Mr David Dansor is the AUHF representative. 

·         Tanzania Mortgage Refinance Company.  Mr Rished Bade, the CEO, is the AUHF representative.

·         Safetrust Savings & Loans Limited joined in May 2011.  Mr Yinka Adeola is the AUHF representative.

·         Homemakers Malawi Limited, joined in August 2011.  Mr Dick Chagwamnjira and Mr Barnett Chirwa are the representatives to the AUHF.

·         Gauteng Partnership Fund has recently applied to join.  Mr Ismail Karr is the representative to the AUHF.

Earlier this year, the Rwanda Housing Bank was taken over by the Rwanda Development Bank.  The Rwanda Development Bank has reconfirmed its membership in the AUHF and paid all the arrears of the Rwanda Housing Bank.  A representative of the RDB will be present at the Conference this week.

NBS Bank Ltd in Malawi sent a formal letter cancelling their membership in April 2011.  They have invited us to approach them again in a year’s time.

Expressions of interest have been received from:

·         Pan African Building Society in Zambia

·         Lesotho Housing and Land Development Corporation

·         Shelter Afrique, whom I hope their delegate has been empowered to sign up membership.

We are engaging with these enquiries on an ongoing basis to ensure that they have sufficient information to enable a decision to join the AUHF.

SUBSCRIPTIONS

For the 2011/12 financial year, subscriptions have been received from 17 members (R291,720) with fees for another 14 members (R238,680) still outstanding.  We have not billed Barclay’s Bank of Ghana and Savings & Loans Kenya Limited because they are more than three years outstanding and (1) we have not found a contact at Barclay’s Bank; and (2) Savings & Loans Kenya is reviewing their situation although it looks unlikely whether they will continue.  

 

 

I attach a detailed Age Analysis for your review.

Clearly an important opportunity for enhancing the budget of the AUHF exists within the collections of arrears outstanding.  I hope that with your help we will resolve these arrears, so that we have a full budget with which to undertake our activities.

AUHF POLICIES

The following issues were addressed at our Exco this week.  I will report back on them verbally:

 

1.                   Resolution regarding unpaid subscriptions

 

2.                   EXCO Term: At our last meeting, we confirmed that the EXCO would hold a two-year term, as agreed at the 2008 AGM.  We have now worded this amended approach into our articles.  As such, we will not vote for a new EXCO this year – we will, however, vote for new office bearers.

 

3.                   EXCO Size: At the last meeting of our EXCO, in February 2011, we discussed the status of Mr E Graham from the SSHFC in The Gambia, who was elected in absentia at the September 2010 AGM.  Then, we understood that he had been replaced by Mr Tambul Danso.  We have since been informed that Mr Danso is no longer at the SSHFC.  We implored the new SSHFC representative to the AUHF, Mr Raymond Njai, to clarify the position, but have not yet heard back from him.  According to our Articles, membership to EXCO is an individual assignment:

 

Clause 6.2 All members of the executives shall be individuals and registered member of the Association.

 

(Clause 10) A member of the Executive shall vacate his office before the expiry of his period of office :

10.1        If he resigns as member of the Executive;

10.2       If he is convicted of any offence which in the opinion of the Executive renders him an unfit or improper person to continue as a member of the Executive;

10.3       If he is absent, without leave of the Chairman of the Executive, for three consecutive meetings of the Executive;

10.4      If he is deregistered as a member as provided for and as envisaged in the Rules of the Association; or

10.5     If he is sequestrated.

 

On this basis, Exco has accepted that Mr E Graham is no longer a member of our EXCO.  We will send a letter on this basis to Mr Graham, care of Mr Njai, to officially confirm our position.

 

4.                   Review of the Articles of Association:  We have reviewed the Articles of Association for the AUHF to confirm if we are aligned with the requirements.  A proposed amendment is ready for consideration by this AGM.

CONCLUSION

May I take this opportunity to thank you all for making an effort to attend this AGM and our Conference in Johannesburg, South Africa.  I wish you all safe travels home and hope that we might find opportunities to get together in the course of the year before our next AGM.

That concludes my report and I move for its adoption.

Reginald Motswaiso (Chairman 2010/2011)