Finance Guarantee

HFGI provides partial financial guarantees to lenders for infrastructure and construction loans in the affordable housing sector, in Africa. The financial guarantees are limited to the initial working capital component of the development loan, and are designed to replace the requirement for cash deposits from end-user purchasers currently being utilised in the development process. Loans are made under the lenders’ usual terms and conditions, including the requirement of collateral by way of the land or other non- cash collateral.

Projects for the construction of housing in the targeted income bands will have to exhibit core requirements, including but not limited to:

Through the intervention of HFGI, the “front-end” of the project with the working capital financial guarantee, the current dearth of development finance can be addressed. It enables developers to build “at scale”, unimpeded by the need to finance everything either piecemeal, or from the residual profits and/or cash flow from their last project. It also addresses the current situation where, in the quest for working capital/liquidity, developers market their projects to the “cash rich” upper income sectors, which make the properties available for rent, continuing the cycle of denial to those who are able to service a mortgage loan but do not have the deposit. This intervention at the “front end”, together with the CRI at the “back-end” of the project, goes a long way towards resolving the current lower and middle income housing issues.

Management and Board of Directors
HFGI does not have a staff, nor an in person risk management capability. It relies specifically on HLGC or Home Finance Guarantors Africa Reinsurance Limited for this service.

HFGI is managed by the JLT Group in Guernsey. Its board comprises Mark Helyar (Guernsey, chairman), Johan Wethmar, Michael Berry (U.K.), Charlene Lea, Nkululeko Sowazi and Nick Wild (U.K.).