Six new mega social housing projects planned for South Africa

 ·16 Feb 2022

Human Settlements minister Mmamoloko Kubayi has announced the construction of six mega social housing projects in the coming two years.

Kubayi made this announcement when she participated in a debate on the State of the Nation Address on Monday.

“There are six social housing projects which will be constructed over two years, starting in the financial year 2022/23. Five Social Housing Institutions and one other development agency will be funded through equity and debt financing to develop these projects,” she said.

The projects include:

  • Fochville Extension 11 in the West Rand District Municipality, Gauteng. The proposed development will consist of 2 198 residential units, out of which 258 will be Social Housing Units (SHU). This project is expected to create 953 jobs;
  • Hospital Street in Mujuba District Municipality, KwaZulu-Natal. The proposed development consists of 53 four-storey building blocks consisting of 1 056 units. This project is expected to create 3384 jobs;
  • Germiston Extension 4 in Ekurhuleni Metropolitan Municipality, Gauteng. The project has planned 201 SHUs to accommodate 601 people. This project is expected to create 847 jobs;
  • Kwandokuhle Social Housing Project in Gert Sibande District Municipality, Mpumalanga. The project involves construction of a total of 492 SHUs in Govan Mbeki Local Municipality in the Gert Sibande District Municipality, Mpumalanga province. This project is expected to create 1544 jobs;
  • Hull Street Phase 1 in Francis Baard District Municipality, Northern Cape. The Hull Street Social Housing Project envisions delivering a total of 600 SHUs in two phases. This project is expected to create 1152 jobs, and;
  • The Willow Creek Project is located in Ermelo, in the Msukaligwa Local Municipality in the Gert Sibande District Municipality, Mpumalanga province. The project entails the construction of 360 SHUs in the Ermelo Central Business District (CBD). This project is expected to create 1 062 jobs.

During his State of the Nation Address, President Cyril Ramaphosa announced that the Infrastructure Fund is now working with state entities to prepare a pipeline of projects with an investment value of approximately R96 billion in several sectors, including social housing.

On Monday, Kubayi said social housing is government’s most promising programme that will help to disrupt the apartheid spatial development and make cities more inclusive.

“The primary purposes of social housing are urban restructuring and regeneration, and increasing the supply of rental housing in good locations for low- to moderate-income earners.

“Social housing is financed with a combination of government funding, debt and equity making this subsector more dynamic and attractive for public-private partnership.

“It is for this reason that social housing has been identified as an integral part of the infrastructure investment, which is central to the success of the Economic Reconstruction and Recovery Plan.”

Read: More South Africans are renting out their homes as they plan to leave the country

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