1. Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Center 8 th to 10 th of September 2009, Maputo - Mozambique 1 HOUSING FINANCING - A PUBLIC -PRIVATE PARTNERSHIP– TRANSFORMING THE FHF IN A CREDIT INSTITTUTION BY: ADRIANO MALEIANE 9 th Septemeber 2009

2. Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique Macroeconomic Fitting 1.Interest rate and inflation Structure

3. Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique Macroeconomic Fitting 2.Deposit Structure

4. Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique Macroeconomic Fitting 3. Bank Credit granted for Housing at National Level (in 1000MT)

5. Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique Macroeconomic Fitting Housing Credit in Total banking credit - 1000MT

6. Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique The Role of the Fund for Housing in this area It is a public body created in 1995 with juridical rights, administrative, financial and patrimonial autonomy. It is responsible for executing government policy for social housing promotion

7. Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique The Role of the Fund for Housing in this area – To promote construction of houses for social habitation – To improve credit interest rates granted by banks for housing construction – To grant credit for housing construction, repairing and extension for citizens whose their household income is not over the minimum national salary

8. Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique Sources of Revenues a) Contracts - Program

9. Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique Sources of Revenues b) Other revenues 82% a 91% of effective revenues come from building alienation

10. Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique FHF Revenues weight in the National Budget Revenues Average: (Contracts, program and other revenues 2006-2008): – 575.587.860 MT National Budget Revenues Average 2006-2008: – 32.774.333.333 MT Weight= 0.0175 = 1.75%

11. Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique Fund for Housing activities evolution

12. Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique Why Transformation? – Sustainability The main source of revenues for the Fund for Housing will finish

13. Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique Why Transformation? – Incoming Little flexible statutes in order to satisfy the market whose beneficiaries are groups of populations with low income, low qualifies labour force and young couples. – Necessity of a development funding institution turned to promotion of developing lines and increase the capacity for resources mobilization.

14. Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique SWOT Analyses Strengths Conversion of assets into capital Innovation concept Inflation tending to lower Threats Competitiveness in regional integration framework Weaknesses Irregular availability of funds Difficulties on mobilizing long term funds Funds largely from the State Opportunities Possibility of expanding to new business areas District as development pole High demand for housing credit

15. Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique Scenario I – Creation of a Housing Credit - HCS Advantages: – High specialization on housing credit (credit for housing, for acquiring construction material and other infrastructures) – Increasing of business volume due to other areas incorporation – Current Fund Patrimony primness for social capital execution Disadvantages: – Additional financial effort – A Financial Society does not have the same prestige as a Financial Bank

16. Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique Scenario II – Creation of banking institution Advantages – High capacity to mobilize funds for credit grant – It is possible to diversify activities without harming the main objective – The State only needs to endow once the constitutions funds Disadvantages There are no remarkable disadvantages

17. Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique – A: 100% Pertaining to the State or – B: Mixed (PPP) 51 % Pertaining to the State 49% Private Property Form

18. Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique Housing Policy, an important pre- requirement. Some inputs: – Autonomization of Social Providence Fund for Civil Servants – Creation of stimulation for personal construction, funding research for reduction of construction material price – Creation of stimulation for housing credit for individuals and companies for real estate development and management

19. Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique Inputs for Housing Policy – Foment of land concession policy for housing and commercial aims to individuals and institutions, funding the respective infrastructures – Affectation of a percentage on the total State revenues for social housing funding and land infrastructures. – Stimulate investigation by education institutions on housing models adjusted to local conditions.

20. Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique With housing policy approval, institutions funds would have the following structure: Social Providence for civil servants – Depositor of State funds intended to development Funds for Contracts Program for social housing Own funds; Emission of obligations; Various Donations.

21. Annual Conference and General Meeting of African Union for Housing Finance Joaquim Chissano International Conference Center 8 th to 10 th of September 2009, Maputo - Mozambique THANK YOU VERY MUCH