Department to spend R3.8 billion to upgrade SA’s informal settlements

The Human Settlements Department says it will spend R3.8 billion this financial year and R11 billion over the next three financial years to upgrade informal settlements in South Africa. This could see the upgrade of at least 1 500 settlements in the country.

On Friday, the department said budget cuts, mainly due to reprioritisation during the COVID-19 pandemic, had led it to pursue partnerships with the private sector to assist with the rising demand for housing.

Video: Human Settlements officials present the department’s annual report to Members of Parliament

The department’s officials appeared before Parliament’s Select Committee on Human Settlements.

Chief Financial Officer, Funaneng Malatsi, says there is a big expectation from the public.

“For this financial year, as minister has indicated a total of R11 billion in informal settlement upgrading. There is a big expectation among the public, so, we need to utilise the money within the parameters of plans we have, particularly for this programme.”

Video: Director-General of Human Settlements Department, Mbulelo Tshangana, talks about budget priorities for 2021:

Partnerships with the private sector

Human Settlements Deputy Director-General, Joseph Leshabane, says the partnerships with the private sector is an attempt to address the housing crisis in the country.

“We also are having projects with private partners to co-invest with us. We used to talk about mega projects in the past, continuing with it has become essential to scale up partnerships. Relying on [the] fiscal alone will not resolve the housing problem.”