Jul 20, 2012
2.8m SA households still lack basic servicesBack
Cape Town|Africa|Housing|Sustainable|transport|Africa|South Africa|United States|Finance|Public Finance Division|Services|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)
Creamer Media Senior Deputy Editor
Other News This Week News
Updated 43 minutes ago Irish Foreign Affairs and Trade Minister Charles Flanagan told media on Thursday that Ireland was well positioned to play a greater role in Africa, particularly in the aviation, pharmaceuticals and agricultural industries. Flanagan was this week leading a high-level...
Updated 45 minutes ago The Lesotho Highlands Development Authority (LHDA) has appointed three consultants for work packages as part of Phase 2 of the Lesotho Highlands Water Project (LHWP). The contracts, worth a collective M40-million, were awarded to the SMEC-FMA joint venture (JV);...
Updated 52 minutes ago JSE-listed Huge Telecom continued to grow its distribution capabilities during the year ended February 28, with the number of business partners increasing by 136, or 47%. Huge Telecom’s connectivity services, which were distributed mainly to small and medium...
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
This Week's Magazine
While economic forecasts for the African continent are most favourable, African airlines may not be able to benefit from the expected growth in the region’s gross domestic product (GDP), International Air Transport Association VP: Africa Raphael Kuuchi has warned....
The Automotive Production and Development Programme (APDP) will need to change substantially post 2020, says Metair Investments South African operations COO Ken Lello. “We must not make tweaks. We have to change. What we are doing is not sustainable.”
Banking group Absa’s forecast is for the rand to end the year at around R13 against the dollar, weakening further to R13.50 by 2016, says Absa sectoral analyst Jacques du Toit. He warns that possible interest rate hikes in the US may see capital being pulled from...
The Dispute Resolution Centre at the Bargaining Council for the Civil Engineering Industry (BCCEI) is now open to handle party-to-party disputes. The BCCEI represents the interests of all level four to nine Construction Industry Development Board companies.
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...