The rationale and challenges in delivering affordable ... - Plusto.com
The rationale and challenges in delivering affordable ... - Plusto.com The rationale and challenges in delivering affordable ... - Plusto.com
The Department of Human Settlements has recognised that the backlog in South Africa is not being reduced fast enough and has committed to increasing the rate of delivery with a view to wiping out the backlog by 2030. At current levels, over R16billion is earmarked by Government for housing each year. But still this is not enough and has led Minister Sexwale to say that “We need all hands on deck to sort this problem out and to create a better South Africa for all.” This remark is both recognition and a plea that Government needs the assistance of all parties possible to eliminate informal settlements and poor housing conditions for millions of South Africans. Business, individuals, institutions, and Government all need to partner in the effort. Government already provides various subsidies to the poor to aid the housing effort. Initiatives include individual housing subsidies, incremental housing programmes, rental housing programmes and so on. Some, besides Government, have also already begun to tackle the problem: organisations such as the National Housing Finance Corporation, IHS, Trust for Urban Housing Finance, the Rural Housing Loan Fund, micro-finance institutions, the Social Housing Regulatory authority, to name a few, are all part of the struggle to get the houses built and get people out of squalor and into better living conditions. A housing backlog is not a uniquely South African problem. Most developing countries suffer some degree of backlog, often seen as a capital market, disposable income and access to banking services problem. We all face the same challenges of eradicating informal settlements and providing people with homes. Role of Housing As the Constitutional Court has said, the provision of “housing as a human right constitutes more than simply providing bricks and mortar”. 2 Proper housing is a fundamental building block not only to human decency in terms of living conditions, but also in terms of stability. In other words, having proper housing allows stability in your life, facilitates the storage of your belongings, a foundation from which to look for a job if you are a job seeker, to build from a small house into a better one, and provides stability for your children’s education. 2 Government of the RSA and Others v Grootboom and Others (2001). Para 35. ELIAS MASILELA KEYNOTE ADDRESS 2012 2
Its importance as fundamental bedrock to a better and improved quality of life cannot be under-estimated. The establishment of formal housing also naturally brings with it over time, better opportunities for commerce around those housing settlements, schools for children who grow up in those neighbourhoods, infrastructure in terms of electricity and water, and so on. In other words, formal housing can act as an essential catalyst to aid development and growth. Proper housing aids the development of better communities where all people can feel that they truly belong to society. It can provide them with a sense of worth, achievement and belonging. In a study by UCT Professor Viruly, he found that across 2379 units constructed, the majority of respondents who took up those housing units agreed that their access to public transport; quality of their children’s lives; house; leisure; social life and health, had all improved. Interventions in the housing market of some sort have occurred many times in history, as countries have been faced with similar problems at some time in their development: American public housing policy had it’s roots in the Great Depression of the 1930’s; British public housing policy in line with rapid urbanization in the 1800’s was already an issue in 1870, with a special Government Board established to oversee the provision of housing to the very poor. Following the 2nd World War, the Government produced an average of 170 000 houses per year from 1946 – 51 and by 1954, this figure had risen to 300 000. (Britain to this day has a homelessness strategy that seeks to eradicate the problem of people living in temporary or informal conditions). Back-Log: World-wide “UN-HABITAT estimates that, worldwide, close to three billion people will need access to housing and basic infrastructure services over the next 25 years. This will require 35.1 million housing units per year or 96 150 per day or 4000 per hour in order to meet demand…” Back-Log: Sub-Saharan Africa Focusing on Sub-Saharan Africa, one needs to acknowledge that profound demographic change is occurring. The rate of urbanization is extremely high. “African cities will have to accommodate more than 300 million new residents” by 2030. ELIAS MASILELA KEYNOTE ADDRESS 2012 3
<strong>The</strong> Department of Human Settlements has recognised that the backlog <strong>in</strong> South Africa is<br />
not be<strong>in</strong>g reduced fast enough <strong>and</strong> has <strong>com</strong>mitted to <strong>in</strong>creas<strong>in</strong>g the rate of delivery with a<br />
view to wip<strong>in</strong>g out the backlog by 2030. At current levels, over R16billion is earmarked by<br />
Government for hous<strong>in</strong>g each year. But still this is not enough <strong>and</strong> has led M<strong>in</strong>ister Sexwale<br />
to say that “We need all h<strong>and</strong>s on deck to sort this problem out <strong>and</strong> to create a better South<br />
Africa for all.”<br />
This remark is both recognition <strong>and</strong> a plea that Government needs the assistance of all<br />
parties possible to elim<strong>in</strong>ate <strong>in</strong>formal settlements <strong>and</strong> poor hous<strong>in</strong>g conditions for millions of<br />
South Africans. Bus<strong>in</strong>ess, <strong>in</strong>dividuals, <strong>in</strong>stitutions, <strong>and</strong> Government all need to partner <strong>in</strong> the<br />
effort. Government already provides various subsidies to the poor to aid the hous<strong>in</strong>g effort.<br />
Initiatives <strong>in</strong>clude <strong>in</strong>dividual hous<strong>in</strong>g subsidies, <strong>in</strong>cremental hous<strong>in</strong>g programmes, rental<br />
hous<strong>in</strong>g programmes <strong>and</strong> so on.<br />
Some, besides Government, have also already begun to tackle the problem: organisations<br />
such as the National Hous<strong>in</strong>g F<strong>in</strong>ance Corporation, IHS, Trust for Urban Hous<strong>in</strong>g F<strong>in</strong>ance,<br />
the Rural Hous<strong>in</strong>g Loan Fund, micro-f<strong>in</strong>ance <strong>in</strong>stitutions, the Social Hous<strong>in</strong>g Regulatory<br />
authority, to name a few, are all part of the struggle to get the houses built <strong>and</strong> get people<br />
out of squalor <strong>and</strong> <strong>in</strong>to better liv<strong>in</strong>g conditions.<br />
A hous<strong>in</strong>g backlog is not a uniquely South African problem. Most develop<strong>in</strong>g countries suffer<br />
some degree of backlog, often seen as a capital market, disposable <strong>in</strong><strong>com</strong>e <strong>and</strong> access to<br />
bank<strong>in</strong>g services problem. We all face the same <strong>challenges</strong> of eradicat<strong>in</strong>g <strong>in</strong>formal<br />
settlements <strong>and</strong> provid<strong>in</strong>g people with homes.<br />
Role of Hous<strong>in</strong>g<br />
As the Constitutional Court has said, the provision of “hous<strong>in</strong>g as a human right constitutes<br />
more than simply provid<strong>in</strong>g bricks <strong>and</strong> mortar”. 2 Proper hous<strong>in</strong>g is a fundamental build<strong>in</strong>g<br />
block not only to human decency <strong>in</strong> terms of liv<strong>in</strong>g conditions, but also <strong>in</strong> terms of stability. In<br />
other words, hav<strong>in</strong>g proper hous<strong>in</strong>g allows stability <strong>in</strong> your life, facilitates the storage of your<br />
belong<strong>in</strong>gs, a foundation from which to look for a job if you are a job seeker, to build from a<br />
small house <strong>in</strong>to a better one, <strong>and</strong> provides stability for your children’s education.<br />
2 Government of the RSA <strong>and</strong> Others v Grootboom <strong>and</strong> Others (2001). Para 35.<br />
ELIAS MASILELA KEYNOTE ADDRESS 2012<br />
2
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