Jul 20, 2012
2.8m SA households still lack basic servicesBack
Cape Town|South Africa|United States|Finance|Public Finance Division|Transport|Transport 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
Other News This Week News
Recent Research Reports
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
Road and Rail 2013: A review of South Africa's road and rail infrastructure (PDF Report)
Creamer Media’s Road and Rail 2013 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...
Liquid Fuels 2013 (PDF Report)
Creamer Media’s 2013 Liquid Fuels report examines South Africa’s liquid fuels market, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing,...
This Week's Magazine
A structured approach, wherein managers personally engage at each level of the project, is necessary to mitigate delays to the workflow on mega construction projects, says State-owned Eskom Kusile power station projects GM Abram Masango. The 4 800 MW Kusile power...
Construction of transmission lines to evacuate power from a regional hydroelectric project in East Africa, which was hanging on the balance following the withdrawal of financing by key partners, is now back on track. After six months of uncertainty, the African...
Three Memorandums of Understanding (MoUs) were signed between South African and Malaysian companies at the Malaysian High Commission in Pretoria on Friday. These MoUs are part of the indirect offsets programme South Africa is providing in return for Malaysia’s...
The South African new vehicle market may well dip to 640 000 units in 2014, says Toyota South Africa Motors (TSAM) sales and marketing senior VP Calvyn Hamman. This is the first prediction that anticipates a drop in the market. To date economists and industry bodies...
Nissan will re-enter the South African minibus taxi industry in March, when the new NV350 Impendulo goes on sale. The 16-seater has been specifically tailored to meet the terms of government’s Taxi Recapitalisation Programme, which aims to replace South Africa’s...