South Africa

2000s

Summary

South Africa - 2000s

The National Spatial Development Framework works to address distortions caused by apartheid, and local government continues the process of restructuring. But effective reform is hampered by a lack of capacity. The housing strategy, now a local government function, promises elimination of informal settlements by 2010. To meet this end, greater emphasis is placed on rental housing and public-private partnerships, especially in inner-city housing projects. Moreover, banks make a stronger commitment to funding middle income housing under a Financial Charter.

Influences

  • Delivery capacity meets constraints.
  • Quality of housing produced in first six years of democratic government questioned: location, social facilities, and construction.
  • South Africa hosts World Housing Conference.
  • Recognition that housing and service delivery is complicated.
  • Informal sector of 2.4 million.
  • Urban population is now in the majority.
  • Landless and homeless; people's housing movement.

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Policies and Programs

  • Integrated Sustainable Rural Strategy Program and Special Integrated Presidential Projects adopted.
  • Community Reinvestment Bill (2003) brings pressure on banks to lend more to lower-income groups.
  • Urban Renewal becomes a policy objective.
  • Municipalities accredited to manage housing programs.
  • Revised Housing Policy: "Breaking New Ground" (2004).
  • Housing Development Norms and Standards established.
  • Banks adopt a Financial Charter, extending 42 billion Rand to lower-income groups over eight years.
  • National Spatial Development Perspective (2003): space economy, areas of need, growth potential.
  • National Urban Renewal Program (2001).

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Institutional Roles

  • Social housing; lobby for rental housing.
  • Provincial- and national-level restructuring.
  • National Housing Registration Board.
  • Increased central control and delegation of policy directives due to poor local government implementation; shift to provinces.
  • National government invests in infrastructure in areas of growth potential.

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Methods, Tools, and Practices

  • In situ upgrading of informal settlements.
  • Planning requirements: integrated development plans.
  • Re-demarcation of local government boundaries and administrative responsibilities.
  • Delivery targets.
  • Local governments raise funds by issuing municipal bonds.
  • Public-private partnerships.
  • Consolidation and transformation process (black empowerment) lost bureaucratic expertise; transition failure to transfer technical and administrative skills.
  • Developers are constrained by costly housing standards.
  • Urban development patterns established under apartheid prove very difficult to change.
  • Urban development affected by incompetence and lack of capacity at the local level.
  • Outcries over corruption in local government.
  • Reduction in housing output due to a requirement to pay deposit for housing.
  • Housing policy recognizes that elements of the 1 million home housing program were unsatisfactory in terms of location and build quality.
  • Local governments continue to experience difficulties in collecting service charges; Free Basic Services policy introduced to address needs of poor.
  • Lack of clear strategy in housing and urban development; reform plagued by weak leadership.

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