From Creamer Media in Johannesburg, this is the Real Economy Report. As part of its ongoing attempts to alleviate the housing shortage in the City of Johannesburg, the Johannesburg Social Housing Company is building 502 rental units in Dobsonville, in Soweto, Zandile Mavuso has the story.

Zandile Mavuso:
The Johannesburg Social Housing Company, or Joscho, is working in collaboration with the City of Johannesburg municipality to fulfil the slogan ‘Jozi at Work’ through the construction of a housing development valued at R200-million in Dobsonville. Delivering a keynote address during the media tour on site, MMC Dan Bovu explained what the project consists of.

MMC Dan Bovu

Zandile Mavuso:
With the mission of developing rental units being based on catering for residents who do not qualify for government-subsidised or bonded houses, Joscho CEO Rory Gallocher explains how the development of this project has proven to be different from some of the developments the company has worked on in the past.

Joscho CEO Rory Gallocher

Zandile Mavuso:
Gallocher further adds that the project will be constructed in stages and some units will be rented out before the end of this year

Rory Gallocher

Zandile Mavuso:
In its quest of creating an economically free municipality, Bovu indicates the vital role that the residents play in the development of the project.

Dan Bovu

Zandile Mavuso:
Joscho’s rental housing scheme caters for people who earn between R3 500 and R7 000. The idea is that once these people’s economic status improves, they will move into bonded houses and providing other citizens the opportunity to rent in their place. However, Bovu indicates that it is important for people to play their role and pay rent to ensure that the project continues to benefit other people within the municipality.

Dan Bovu

Shannon de Ryhove:
Other news making headlines this week: Downtown Johannesburg showcased in big-budget Hollywood blockbuster; President Robert Mugabe says Zimbabwe is open to foreign investment; and weak steel demand forces ArcelorMittal South Africa to run the upgraded Newcastle mill below capacity.

Scenes from the latest instalment of the popular American superhero film The Avengers, which were shot in Johannesburg in February, will promote the city and the country as a film destination, owing to its enormous economic and marketing value.

Johannesburg Tourism company public relations and communications manager Laura Vercueil

Zimbabwe President Robert Mugabe last month told a South Africa–Zimbabwe Business Forum that despite media reports and fears that Zimbabwe’s indigenisation policy implies that the country is not open to foreign investment, the country is, indeed, open to foreign-owned businesses.

Zimbabwe President Robert Mugabe

Steel producer ArcelorMittal South Africa (AMSA), which recently completed the R2-billion reline of the blast furnace at the Newcastle mill, has decided not to immediately ramp up the plant to its expanded 1.9-million-tonne-a-year nameplate capacity, owing to weak domestic market conditions.

AMSA KwaZulu-Natal facility CEO Paul O'Flaherty

Shannon de Ryhove:
That’s Creamer Media’s Real Economy Report. Join us again next week for more news and insight into South Africa’s real economy.