Human Settlements, Water and Sanitation Minister Lindiwe Sisulu has issued a clarion call to potential investors, including banking institutions, to assist government efforts in meeting demand for social housing units by investing into social housing projects.
The Minister’s call comes after the recent high demand from various potential beneficiaries of social housing projects in provinces such as Gauteng, Western Cape, KwaZulu-Natal, Limpopo, Mpumalanga and the Northern Cape, which currently do not have social housing units.
Sisulu said investment opportunities are spread across the country’s metros.
It is estimated that the current demand for social housing units is sitting at over 300 000.
Currently, the Department of Human Settlements’ Social Housing Regulator Authority (SHRA) has 52 projects in the pipeline which are expected to yield 21 000 units. This would require debt investment funding of R3. 6 billion.
The social housing projects are meant for beneficiaries earning between R1 500 and R15 000 per month, whilst those who earn less than the minimum amount qualify for fully subsidised government housing or Breaking New Ground (BNG) houses.
Over the past six years, the department through its entity, SHRA has delivered close to 30 000 units mainly in Gauteng, KwaZulu-Natal, Western Cape and Eastern Cape.
Sisulu said that through partnerships with the private sector, government has over the years transformed the lives of South African people.
“As we face the social housing demand, we cannot turn to any other reliable partners that those who have shown interest in our work. Our target of delivery of over 30 000 units in the 2019-2024 Medium Term Strategic Framework (MTSF) will only be possible if the private investors partner with us.
“Sixty-eight percent of accredited social housing institutions are women controlled and I am encouraged that in 2020 we had some new women entries in KwaZulu-Natal and Eastern Cape venturing into the social hosing sector. This is long overdue and we encourage other women to consider partnering with us to be accredited as social housing institutions,” Sisulu said in a statement on Sunday.
Meanwhile, Sisulu also called upon the Western Cape Department of Transport and Public Works to make some land parcels available to the department, to enable the speedy delivery of affordable housing in the City of Cape Town.
This follows media reports that there has been a delay in the execution of the social housing projects in the city, as a result of land parcels which are yet to be transferred to the Department of Human Settlements.