SASIHC needs to enhance its corporate governance system from the appointment of the Board Committees as well as improvement on business processes and internal controls. The alignment of the strategic business and corporate plan with the organisational structure should enhance organisational performance and produce effective results.

The company needs an IT- enabled Business Information Systems (BIS) and automated business processes to impact positively on productivity and the bottom line. Better coordination and planning as well as execution are needed between the Board of Directors and the Executive Management Team so that SASIHC can meet its strategic objectives and goals.

There is a dire shortage of affordable rental units in the Sol Plaatje Municipality feeder area and this position SASIHC to be in a unique position in product offerings / solutions as well as adequate market penetration strategy. SASIHC is one of the two (02) accredited social housing institute in the entire Northern Cape Province which should enable the entity to spread its footprint outside the Sol Plaatje Municipality in the delivery of social housing products.

SASIHC faces two major threats currently which are political and economic. Too much interference has nearly collapsed the social housing programme of the organisation, as politicians wanted to interfere with the operational independence and decision-making processes. For example, when decisions were made by SASIHC to evict non-paying tenants, politicians halted the process and went against a Court Order that gave SASIHC a go ahead and evict delinquent tenants. 

At an economic front, the construction sector has experienced significant decline and turbulence in the Kimberley area which resulted in increased unemployment levels in the target market of the entity. The global economic environment and the sluggish growth in the SA economy has a dire consequence for the labour market and a reduced demand of the housing product that the company offers. The commercial banks started to tighten their credit control which impacted negatively on mortgage bond approvals and have a domino effect on our commercial housing development.

SASIHC’s strength lies in the fact that it owes substantial amount of undeveloped land that measures over 60 hectares that is suitable for development of both social and commercial housing. The company has a solid background in the construction, property development and tenant management and this assist in exploiting the value-chain of the property development and construction sector in Kimberley.

Over a period of time (15 years), SASIHC has set up IT based platforms in property management and tenant management and as such would not experience any major challenges to meet its pipeline targets in both social housing and commercial housing development through adequate resourcing and optimisation of internal business processes.

The company had experienced some tough trading conditions from 2015 onwards due to the slump in the housing market as well as the general decline in the construction sector. SASIHC has periodically experienced liquidity problems due to high operational costs (personnel costs) which forced the company to restructure its operations and retrench some employees in non-core areas.

Another weakness in the company performance is the rental arrears and eviction of tenants in the social housing units, and this has impacted quiet negatively on the cash flows and liquidity of the company.