Human Settlements Minister Thembi Simelane has called for urgent, large-scale collaboration between government, the private sector, and financial institutions to address South Africa’s housing backlog, which currently stands at approximately 2.6 million units affecting more than 12 million people.
Delivering a keynote address at the Second Local Government Residential Property Summit held on Thursday in Modderfontein, Johannesburg, Simelane said the scale of the challenge requires a fundamental shift in how housing is delivered.
“The State cannot address this challenge alone. Delivery at scale requires structured and sustained partnership with the private sector and other industry role players,” the Minister said.
She highlighted that South Africa is operating within a complex environment marked by rapid urbanisation, rising construction costs, infrastructure constraints and increasing climate-related risks.
Citing global projections, the Minister noted that between 68% and 70% of the world’s population is expected to live in urban areas by 2050, with Africa among the regions most affected - a trend that will place additional pressure on cities such as Johannesburg.
Despite these challenges, Simelane reaffirmed government’s constitutional obligation to progressively realise access to adequate housing.
“The question before us is not whether we deliver, but how we deliver differently, more efficiently, and at scale.,” the Minister said.
Shift towards partnerships and innovation
Simelane described the summit as a critical platform to align government, developers and financiers, and to advance innovative public-private partnerships capable of accelerating delivery.
Central to this shift is the 2024 White Paper on Human Settlements, which reinforces the role of the private sector as a key delivery partner and promotes diversified housing delivery models and a transition towards integrated and spatially just human settlements.
“This requires a move towards programme-based implementation, outcome-driven planning, and stronger intergovernmental coordination,” the Minister said.
While noting significant progress in expanding opportunities for women, youth and emerging contractors in the construction sector, the Minister stressed the need for deeper, systemic transformation.
“The task ahead is to ensure that transformation is systemic, sustainable, and embedded across the value chain. Most importantly it must be impactful in improving the quality of lives of the historically marginalised,” the Minister said.
Innovative building technologies gain momentum
The Minister pointed to the recent Innovative Building Technologies (IBT) Summit, held at NASREC in February, as a turning point for the sector.
The summit confirmed that IBTs are no longer experimental. They are a strategic necessity for delivering durable housing at the required scale, speed, and quality.
Key outcomes included regulatory alignment across institutions, commitments to ring-fenced funding, and the integration of IBTs into climate-resilient housing delivery.
A multi-stakeholder implementation forum, a programme management office within the department, and structured monitoring systems have been established to ensure these commitments translate into delivery.
The Minister emphasised that scaling delivery will depend on a responsive financing ecosystem, including ensuring that IBT housing qualifies for financing and insurance, and strengthening partnerships with development finance institutions and private investors.
“Predictable demand, supported by aligned funding mechanisms, will be essential to unlocking scale,” the Minister said.
From dialogue to delivery
The Minister urged stakeholders to move beyond engagement to implementation, and ensure that the summit produces tangible outcomes, including bankable projects and partnerships that are structured with clear delivery pipelines.
“We must move collectively from dialogue to delivery, from planning to implementation,” the Minister said.
In conclusion, Simelane said South Africa stands at a pivotal moment for the human settlements sector, where convergence of policy reform, technological innovation, private sector capability and local government leadership, is indispensable in providing lasting solutions the property sector challenges.
“If we succeed, we will not only address the housing backlog, but we will also drive economic growth, create jobs, and build inclusive and sustainable communities.
“Let us act with urgency, purpose, and collective resolve. The time for incremental change has passed. The time for scaled, coordinated implementation is now,” she said.
The summit brings together key stakeholders across government, industry, and finance to collectively confront one of the most pressing challenges, housing delivery at scale. – SAnews.gov.za
