Oct 03, 2012
Adequate, appropriately positioned housing key to SA developmentBack
Johannesburg|Rustenburg|Africa|Education|Housing|International Housing Solutions|Projects|Public Investment Corporation|Systems|Water|Africa|South Africa|Marikana Mine|Electricity|Health Services|Positioned Housing Infrastructure|Sustainable Human Settlement Solutions|Systems|Transport|Transport Networks|Elias Masilela|François Viruly|Infrastructure|Jacob Zuma|Kecia Rust|Manuel|Water
© Reuse this
Speaking at the International Housing Solutions affordable housing conference, in Johannesburg, he pointed out that the events at the Marikana mine, in Rustenburg, revealed the socioeconomic issues faced by South Africans and indicated that a paradigm shift was required.
While South Africa has made some progress in building a better life for its citizens, the nation has not achieved its core responsibilities and aims, including that of delivering reasonable, adequate shelter.
Manuel said South Africa needed to develop adequate, appropriately positioned housing infrastructure, allowing communities access to education, water, electricity, health services, affordable public transport networks and employment opportunities.
He pointed to the fact that, while three-million people have been housed since 1994, many were located far away from the country’s “economic hubs” and remained in poverty, owing to inadequate land use and spatial planning.
Further, an inability to deal with poverty, inequality and unemployment would continue to widen the gap in the housing market.
Currently only 15% of households in South Africa had access to bonds, another 60% qualified for subsidised housing, and the remaining 25% did not qualify for a subsidy or a bond.
Manuel added that the fact that only 15% of individuals in South Africa were able to take care of themselves independent of the State was a “failure of mass proportions”.
Planning around population shifts was also critical as it was expected that, by 2030, over 11-million people would migrate to urban areas, which about 30-million South Africans already occupied.
University of Cape Town Professor Francois Viruly agreed that urbanisation would create a challenge in housing, citing the expectation that over 10-million people would migrate to Gauteng alone over the next 30 to 40 years.
The National Development Plan, which Manuel tabled with President Jacob Zuma in August, highlighted the critical area of human settlement development, as well as a number of other key drivers of change in the country, and outlined strategies moving forward.
The plan looks at how to transform where people live, how government could break the pattern of building “soulless little boxes” and instead facilitate the development of communities.
But Manuel said that collaboration, partnerships and alliances were required to ensure success.
Despite the interests of the State and business not always being aligned – the former to improve quality of life for citizens and the latter to drive profits – the country could drive the changes together, the Minister added.
Elias Masilela, the CEO of the Public Investment Corporation, which has invested R2.6-billion in, besides others, low-cost housing projects and private equity for housing developments, said South Africa’s development could fall further behind other emerging nations if the country did not invest in, and plan for, housing infrastructure, water, electricity and transport systems.
He highlighted that, despite efforts by South Africa’s government to supply adequate housing for its citizens, a backlog of between 2.1-million and 2.5-million subsidised houses remained, while 12-million people still required adequate housing.
Currently, about 12.8% of South African households lived in Reconstruction and Development programme subsidised houses, while 13.5% of households had at least one person on the waiting list for subsidised housing.
FinMark Trust housing finance theme coordinator Kecia Rust said that about 60% of the South African population earned less than R3 000 a month and were eligible to apply for subsidised housing.
The Department of Human Settlements aimed to eliminate the backlog by 2030 and has committed R16-billion a year to fund housing projects.
Edited by: Mariaan Webb© Reuse this Comment Guidelines
Other Construction News
Updated 1 hour 54 minutes ago Economic Development Minister Ebrahim Patel says government will be prioritising six ‘I’s as part of its “radical economic transformation” agenda for the coming five years. Delivering his Budget Vote in Parliament on Tuesday, Patel said the six components...
Updated 2 hours 6 minutes ago In what could be the single-largest contract awarded to construction major Murray & Roberts (M&R) since the Eskom power build programme, M&R subsidiary M&R Cementation has secured a R2.6-billion contract to develop an underground mine beneath diamond major De...
Updated 3 hours ago Property developers Growthpoint Properties and Zenprop Property Holdings are targeting a five-star Green Building Council of South Africa Green Star rating for insurance provider Discovery’s new global head office to be constructed in Sandton, Growthpoint office...
Updated 2 hours 17 minutes ago A standardised tariff for electricity resellers is needed to avoid consumers being overcharged, energy regulator National Energy Regulator of South Africa (Nersa) said on Tuesday. "The pressing problem right now is that there is a standardised tariff that they...
Updated 2 hours 25 minutes ago Economic Development Minister Ebrahim Patel says government will be prioritising six ‘I’s as part of its “radical economic transformation” agenda for the coming five years. Delivering his Budget Vote in Parliament on Tuesday, Patel said the six components...
Updated 2 hours 37 minutes ago In what could be the single-largest contract awarded to construction major Murray & Roberts (M&R) since the Eskom power build programme, M&R subsidiary M&R Cementation has secured a R2.6-billion contract to develop an underground mine beneath diamond major De...
Recent Research Reports
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
This Week's Magazine
Local aerospace company Denel Aerostructures (DAe), part of the State-owned Denel Group, has won a fourth contract to manufacture parts for the Airbus A400M military air transport and air-to-air refuelling aircraft. The new contract, which was won in an international...
Although CEO Mark McChlery and chief marketing officer Bob Skinstad likened themselves to children in a playground when taking on the task of “reengineering and repositioning” the Seartec brand, the “young, dynamic and enthusiastic guys” were like proud...
An increasing number of buyers, in both the new and used car markets, are opting for finance structures that lower their monthly repayments, says asset financing company WesBank. These include the use of large balloon payments (also known as residuals), as well as...
Tertiary education institutions can use search engine giant Google’s Chromebook to provide secure mobile end-point devices for students on which they can share documents, work collaboratively on documents and access education materials and applications being used...
Local ceiling and partition company Abbeycon has beaten global competition at the Saint-Gobain Gypsum International Trophy competition, which was held last month in Berlin, Germany.