30 years of the human settlement journey
In order to put a spotlight on the issues the Department of Human Settlements has faced since 1994, Leadership editor, Prof. JJ Tabane put 30 questions to Minister Mmamoloko Kubayi
How has the population growth in South Africa impacted human settlements over the last 30 years?
According to the Census 2022, our population has been growing at an annual rate of just over 12% from 1996 to date. This growth has had a significant impact on the demand for basic services, of which shelter is one. Consequently, there has been an elevated demand for government-subsidised housing, or programmes meant to assist the poor in acquiring decent and quality shelter. The population growth further increased rapidity of urbanisation, which is mainly driven by the search for economic opportunities in major cities, semi-urban, and rural towns across the country. As a result, the increase in demand for urban housing has far surpassed the supply, leading to an increased number of informal settlements, the emergence of urban slums mainly found in hijacked inner city buildings, and a high demand for basic services such as water, sanitation, and electricity.
What are the main challenges in providing affordable housing in South Africa?
Both government and private sector play a role in the provision of affordable housing in South Africa. The high input costs which are mainly driven by the cost of well-located land, low investment in the development of affordable housing due to fiscal constraints, low private sector appetite, and the ever increasing materials inflation are the main challenges to the provision of affordable housing. Other secondary challenges include the high indebtedness of individuals and the reluctance of the financial institutions to finance bonds for people in the category of the market.
How has urbanisation affected rural settlements in South Africa?
More than 60% of South Africans live in urban areas, and this figure is projected to increase to 70% by 2030 and 80% by 2050. However, it’s important to note that the funding model our government has adopted takes into consideration an equitable share of available resources, which is based on the population size, amongst other things. It therefore means that the distribution of human settlement resources between urban and rural will always be determined by the equitable distribution approach.
What measures have been taken to address informal settlements in South Africa?
The government is already responding to the housing backlog through various housing programmes. These include the provision of fully subsidised housing units (RDP/BNG), rental stock or social housing, and affordable housing through First Home Finance for the missing middle. These programmes have made a significant dent in the reduction of informality. As evidenced by the Census 2022, only 7.9% of households live in informal dwellings compared with 13.6% in 2011. Through the Informal Settlements Upgrading Grant programme, government upgrades informal settlements through provision of services and ultimately provides houses where settlements located on suitable land are upgraded in situ. Where the land is unsuitable, residents are relocated to suitable land. Government is also engaging Development Finance Institutions, the private sector, and non-government organisations to collaborate on plans and models to revamp and repurpose abandoned and hijacked buildings for social and affordable housing opportunities.
What role does government policy play in promoting sustainable human settlements in South Africa?
The National Housing Programme. The provision of Social and Economic Facilities was instituted in terms of Section 3(4)(g) of the Housing Act, 1997. This programme promotes the provision of basic social amenities within existing and new housing areas, as well as upgraded informal settlements projects to achieve social and economic development. We have also worked with the private sector to provide sustainable human settlements. The projects such as Cosmo City, Zanemvula and Sky City, Clayville, Riverside, and Lufhereng are clear examples of what can be achieved if the government and private sector work towards a common objective.
How has the apartheid legacy influenced the spatial patterns of human settlements in South Africa?
The pre-1994 spatial plan resulted in people living far away from socio-economic activities. As a result, the previously disadvantaged had to spend their limited resources and time to travel to and from workplaces. The ownership patterns of land in urban areas, inherited from apartheid, makes it very costly for government to acquire well-located land for human settlements. Similarly, private developers who want to acquire land for mixed income developments find it economically unviable to do so in well-located land due to cost. The projects aimed at disrupting apartheid spatial development are drifting farther and farther away from economic opportunities.
What initiatives have been undertaken to promote integrated and inclusive human settlements in South Africa?
Access to adequate housing is enshrined in South Africa’s Constitution. Government has, since 1994, implemented various programmes aimed at addressing the spatial inequalities caused by apartheid. To promote integrated and inclusive human settlements, government, in partnership with the private sector, implemented the Mega Human Settlements Projects in major cities across the country. They are designed to include all housing typologies (BNG, Social Housing, Bonded market) and include social amenities such as health facilities and schools.
How has climate change impacted human settlements in South Africa?
Climate change has led to an increase in natural disasters such as floods, heavy rains, strong winds, etc., affecting mainly informal settlements and rural areas. Government, as a result, has had to divert and use limited resources to attend to the humanitarian crisis due to disasters.
What strategies have been implemented to address urban sprawl and promote compact cities in South Africa?
There is work being done through the Integrated Urban Development Framework (IUDF), which is an important roadmap for our country to implement the NDP’s vision for spatial transformation—creating habitable inclusive and resilient towns and cities while reversing the apartheid spatial legacy. Additionally, the Human Settlements White Paper is being reviewed in order to address this matter, amongst others. The District Development Model (DDM), which is an all-of-government and all-of-society approach that aims to tackle the deep-rooted silo mentality underpinning the planning, budgeting, and delivery of services across the three spheres of government. Through this approach, the IUDF will capitalise on opportunities that exist to mobilise other actors in the private sector, non-government organisations, and communities to work towards a common goal, that is to provide housing for those in need.
How has the COVID-19 pandemic affected human settlements and housing in South Africa?
The main impact of COVID-19 was the unexpected increase of land invasions leading to the increased number of informal settlements. Due to measures implemented to curtail the spread of COVID-19, the human settlements construction projects faced stoppages that resulted in budget escalations and blockages.
What is your assessment of transformation in the human settlements arena?
Economic transformation with the human settlements sector must be seen within the context of the transformation of the construction sector in general. So in the human settlements subsector and its value chains, just like the construction, a concerted effort needs to be put towards creating a transformed and inclusive sector.
What is your assessment of transformation in the estate agency business?
Transformation of the sector is non-negotiable. The Property Practitioners Regulatory Authority (PPRA) has made strides in transforming the industry. Recently, it partnered with Rawson Property Group which has awarded nine franchises to Historically Disadvantaged Individuals. These recipients will receive comprehensive training, ongoing support, and mentoring from the franchisor to ensure that their businesses succeed. On the 6th of March 2024, the PPRA entered a transformative partnership in association with Eskom, Claremart, and the Property Sector Charter Council. 229 young black property practitioners (learners) and 37 property mentorship employers (Property Practitioners) were granted an opportunity to dispose of Eskom properties across the country. This partnership brought the much-needed relief of access to property stock for the effective mentorship programme. These are some of the initiatives we have employed to ensure real transformation in the real estate industry is realised.
How have you dealt with corruption in Human Settlements in your portfolio since you assumed this position?
All matters that came to my attention were referred to the authorities as the relevant bodies with the mandate to investigate and take those matters forward.
How can you quantify the housing backlog at present?
The current housing backlog stands at above two million and it is a moving target informed by several factors.
What explains the congestion of a place like Alexandra and Diepsloot after 30 years of democracy?
As we have already explained, population increase coupled with the rapid rate of urbanisation have led to a situation where the demand for urban housing far surpasses the supply, as a result of which many people end up in informal settlements and backyards in the old townships such as Alexandra.
What innovations has the ANC introduced to deal with the housing backlog?
We have adopted a continuous improvement model to Human Settlements. Since the adoption of the first housing White Paper in 1997, our housing policies have been adjusted to respond to growing demand and growing diversity of the market. Amongst others, these changes include the introduction, in 2004, of Comprehensive Housing Plan (CHP) for the Development of Integrated Sustainable Human Settlements (Breaking New Ground [BNG]) that aims, among other things, to eradicate informal settlements in South Africa in the shortest possible time; the adoption, in 2009, of the Social Housing Policy aimed at meeting the missing middle housing demand, and recently, the front-loading funding model which enables provinces to deliver projects in one year that would otherwise take three years to complete. We are also implementing a range of mixed-use and mixed-income developments in well-located areas. For example, Cornubia in KwaZulu-Natal is one of such mixed-use and mixed-income developments, strategically located in the north of Durban between the CBD and the airport. Other housing programmes such as affordable housing in the form of First Home Finance for the missing middle have also been introduced.
How are you clamping down on the sale of RDP houses?
Like any other property, RDP houses can be sold within the ambit of the Housing Act. Where there are compelling reasons for a beneficiary to sell a house, the Act requires that the house is sold back to the government. We report cases of illegal sale of RDP houses to law enforcement and the law takes its course.
What actions have you taken against poor workmanship in some of the RDP houses?
In 2016, the NHBRC launched a new set of guidelines to address several issues that had become concerns for the NHBRC, government, and the industry over the years. The guidelines which are contained in a home building manual provide an outline of quality requirements for builders and home inspectors. Also, NHBRC inspectors are trained to not only pick up faults but to work with the contractor in mitigating against risks associated with building a new home, thus protecting housing consumers against shoddy workmanship. We are also tightening on consumer protection through the introduction of the Consumer Protection Bill which is currently in Parliament. Once adopted, it will introduce very stringent measures to deal with poor workmanship, including personal liability for the perpetrators.
How many informal settlements were newly established in the last 10 years?
There are currently more than 3 000 informal settlements around the country. They are mainly in Metropolitan Municipalities. However, these are inclusive of both new and old ones.
What in your view could stem the tide of human settlements being razed to the ground every winter?
While the informal settlements are being upgraded, government has agreed to escalate re-blocking and de-clustering. This process will alleviate the unstructured location of informal units next to each other and create pathways for accessibility of emergency services and health and safety personnel in the event of a disaster or fire incident. The permanent solution will be the formalisation of informal settlements that will be realised over time within the available means.
What is the solution to remove the danger of flooding in human settlements?
The availability of well-located land for human settlements development is essential. As the government, we will do our part to provide housing for the qualifying beneficiaries. Equally, we call upon the people who reside in flood line areas to heed our call and move to areas suitable for human habitation.
What is the plan in place to deal with emergencies and not be eclipsed by NGOs who seem to always step in first?
All sectors have a role to play. The NGOs play an important role in assisting with immediate humanitarian needs such as food and warm clothes. Human Settlements department intervention is that of providing emergency shelter, provision of rebuilding materials (informal settlements), and Temporal Residential Areas. We have also brought NGOs on board to work with us to review our policy on human settlements.
What action are you taking against contractors who have collapsed mega projects such as Montrose?
Our message has been very clear and that is contractors must deliver quality houses, on time and within budget. For those that fail to honour their contractual obligations, there must be consequences.
What happened to the R60k per shack scandal? Was this ever followed up or was this simply forgotten?
We have stated on numerous occasions that fraud and corruption will never be tolerated. We are also clear that law must take its course against those who are found to have broken the law. With regards to Talana, the law enforcement agencies have been seized with the matter. Accordingly, actions have been taken against those implicated, including restricting the affected service provider from doing business with the government.
What happened to the relocation of people on the rail line of PRASA?
In the last financial year we redirected funds, R50 million, to the City of Cape Town so that the city could purchase land to relocate people from the PRASA lines and the city refused to utilise the money for this purpose and opted to return the money back to the national treasury. To take matters forward, our agency, the Housing Development Agency, has worked together with PRASA to restore the rail services. This has been done by relocating affected households to identified land parcels. We have further directed the City of Cape Town to use available grants, namely, Urban Settlement Development Grant (USDG) and Informal Settlements Upgrading Programme Grant (ISUPG), to provide basic services to those who have been affected by relocation.
What happened to the issue of corruption in the allocation of land and houses in local municipalities?
All the matters related to corruption in relation to Human Settlements that have come to our attention have been reported to law enforcement and from time to time they update us of the status of all these matters. Some of them are before the courts and others are still under investigation. Our view is that the corrupt and the corrupted must be held responsible for their illegal actions. The digitisation of the beneficiary management and allocation system is on track with SITA, which will assist with curbing beneficiary list manipulation. This process will minimise human intervention in the beneficiary list and ensure that allocation is transparent.
What is the deal with the military veterans where housing is concerned?
The Department is moving with urgency to allocate housing to military veterans verified and confirmed by the Department of Military Veterans (DMV). In responding to the plight of military veterans so that we do not have a situation where they are homeless, we have agreed to engage all formations to agree for us to provide the normal BNG while awaiting their verification and once this is done by DMV, their top-up subsidy to be provided to the military veterans.
How are you dealing with the so-called missing middle of those who don’t qualify for your RDP housing?
Providing funding to men and women towards first-time ownership promotes economic empowerment and stability, thus benefiting society as a whole. Through First Home Finance offered by National Housing Finance Corporation, an agency of the department, we have delivered over 22 000 subsidies since 2019. This was against the set target of 18 000 housing units. During the financial year 2023-2024, we assisted 2 717 women to the value of R244.2 million through First Home Finance to buy their first homes. This has leveraged private sector funding of R1.2 billion in the affordable housing market. We have also increased our efforts to deliver rental stock through the social housing programme which is driven by the SHRA.