PRESIDENT Jacob Zuma last night announced a R1-billion fund that would provide reprieve to low income earners who struggle to obtain home loans.
People earning between R5000 and R15000 would be granted an R83000 subsidy from provincial governments to make it easier for banks to approve their mortgage loans.
This would cater for a significant number of citizens who do not qualify for RDP houses, but who earn less to qualify for home loans. It could also assist government to eradicate informal settlements as more citizens would afford decent houses.
Although more than two million RDP houses have been built since 1994, government is still facing a massive backlog.
"We are pleased to report that this fund will start its operations in April, managed by the National Housing Finance Corporation," said Zuma.
He also announced that R300-million had been set aside for preparatory work of building universities in the Northern Cape and Mpumalanga.
To curb escalating electricity prices, Zuma announced he had approached state-owned power utility Eskom to re-look electricity tariffs increases.
Electricity tariffs in the country have sky-rocketed in the past years. In 2010, the National Energy Regulator of South Africa granted Eskom a 24.8% tariff increase in the 2010/11 financial and 25% increase in the next two financial years.
The power utility had requested a 35% tariff hike to fund the construction of two power stations - Medupi and Kusile - as it aims to increase its energy generation capacity.
Zuma said he requested the power utility to look at other options to curb the price increases.
He said this would require a pact business, labour, municipalities, communities and customers and suppliers.
Zuma urged South African to save electricity to avoid load shedding - rotating blackouts - which were experienced in 2008.
"For the next two years, until the Medupi and Kusile power stations come into operation, the electricity system will be very tight," he said.
He said in addition to new power stations, government would search for energy sources to increase the energy capacity.
"We will continue searching for renewable energy sources, especially solar electricity and biofuels, as we implement the Green Economy Accord with economic stakeholders," Zuma said.
R1bn reprieve for low earners
PRESIDENT Jacob Zuma last night announced a R1-billion fund that would provide reprieve to low income earners who struggle to obtain home loans.
People earning between R5000 and R15000 would be granted an R83000 subsidy from provincial governments to make it easier for banks to approve their mortgage loans.
This would cater for a significant number of citizens who do not qualify for RDP houses, but who earn less to qualify for home loans. It could also assist government to eradicate informal settlements as more citizens would afford decent houses.
Although more than two million RDP houses have been built since 1994, government is still facing a massive backlog.
"We are pleased to report that this fund will start its operations in April, managed by the National Housing Finance Corporation," said Zuma.
He also announced that R300-million had been set aside for preparatory work of building universities in the Northern Cape and Mpumalanga.
To curb escalating electricity prices, Zuma announced he had approached state-owned power utility Eskom to re-look electricity tariffs increases.
Electricity tariffs in the country have sky-rocketed in the past years. In 2010, the National Energy Regulator of South Africa granted Eskom a 24.8% tariff increase in the 2010/11 financial and 25% increase in the next two financial years.
The power utility had requested a 35% tariff hike to fund the construction of two power stations - Medupi and Kusile - as it aims to increase its energy generation capacity.
Zuma said he requested the power utility to look at other options to curb the price increases.
He said this would require a pact business, labour, municipalities, communities and customers and suppliers.
Zuma urged South African to save electricity to avoid load shedding - rotating blackouts - which were experienced in 2008.
"For the next two years, until the Medupi and Kusile power stations come into operation, the electricity system will be very tight," he said.
He said in addition to new power stations, government would search for energy sources to increase the energy capacity.
"We will continue searching for renewable energy sources, especially solar electricity and biofuels, as we implement the Green Economy Accord with economic stakeholders," Zuma said.
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