Jul 20, 2012
2.8m SA households still lack basic servicesBack
Cape Town|Africa|Housing|Africa|South Africa|United States|Finance|Public Finance Division|Transport|Transport Infrastructure|Infrastructure|Neville Chainee|Pierre Venter|Ulrike Rwida|Wayne Muller
© Reuse this
Speaking on the topic of finan- cing affordable housing and infrastructure, Chainee said that many countries had already faced this problem and South Africa should not think it was alone in addressing such a housing and infrastructure backlog.
“We’re very angry with ourselves and critical of ourselves, but what we need to be clear about is that other countries have gone through the same kind of spatial, integration, financing and infrastructure development challenges. And the big country that has been through that is the US.”
Cape Town director on housing finance and leasing Wayne Muller said the housing backlog in the city alone was projected to be 400 000 houses with the ongoing challenge of about 50 000 people moving into the city each year.
In Muller’s view, there were a number of requirements for successful human settlement developments, which include well-located land, enhanced densities, community facilities, good governance, private-sector involvement, work opportunities and access to bulk and transport infrastructure.
The dialogue participants agreed that, on the whole, the outcome required to achieve sustainable affordable housing and infrastructure was fairly well understood but the manner in which this could be achieved and financed were the major challenges.
Ulrike Rwida, director for human settlements in the public finance division of the National Treasury, pointed out that not only did the extent of the State’s role in providing housing need to be clarified, but also a better understanding needed to be gained of why the market was unable to meet the housing demand and why housing was so expensive in South Africa.
The concern that many South Africans were able to obtain microfinance with ease but were still unable to buy houses needed to be investigated. “The housing budget is R24-billion this year; how do we use a R24-billion budget to fix some of these constraints, and what can we do and what can’t we do?” asked Rwida.
In the view of panel member Pierre Venter, GM of human settlements at the National Banking Association, the current standards trying to be attained were too high, which was hindering successful delivery. “If we can’t afford the houses that we are delivering at the moment, it’s not a sustainable policy that we have as a country,” he said.
The message which was repeated by many participants was that better partnerships needed to be developed between government at all levels, the commercial banking sector, the communities affected and private companies in order to effectively tackle the challenge of financing and providing affordable and sustainable housing and infrastructure.
However, the dialogue generated many more questions than participants were able to answer, this being indicative of the great challenge being faced by South Africa in successfully housing the nation.
Edited by: Martin Zhuwakinyu© Reuse this Comment Guidelines (150 word limit)
Other News This Week News
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
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.
This Week's Magazine
While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...