Interested parties have until 30 November 2020 to provide input on the strategy, which took almost two years to formulate, as a means to enable greater partnership, collaboration, inclusivity and innovation in the human settlements sphere. This is crucial, as the City on its own cannot solve the challenges of urbanisation, increased informality and a drastic shortage in the housing stock. The strategy is meant to enable more sustainable, integrated and spatially transformed communities.

‘Within the next 10 years, there will be a shortfall in the development of formal housing opportunities of approximately 30 000 every year, assuming the average annual rate of supply by both the private and public sectors remain unchanged. The consequences of a business as usual approach will be felt in all corners of our society. This is why the City has been doing extensive work for some years to map a way forward to enable greater participation in the housing market. Over this time, Cape Town will grow by roughly 800 000 inhabitants. To accommodate this growth as well as manage the existing housing demand, it is estimated that roughly 500 000 housing opportunities need to be created between now and 2028. We need innovation and partnerships and radical national housing reform. If we cannot get the reform we seek, we need to look at what we can do within our current ambit and context. The City already spends almost all the money it is allocated for housing projects. It simply cannot be the sole provider of affordable housing opportunities. We need to look at giving incentives to recognised informal settlement dwellers to ensure informal houses become safer for residents; we need to look at greater site and service and upgrade options; we need to get micro-developers and micro-financiers on board and we definitely need to get more private sector support and innovation if we are to overcome the challenge. This is not a City of Cape Town Strategy. It is a Cape Town strategy as we are all in this together,’ said the City’s Mayoral Committee Member for Human Settlements, Councillor Malusi Booi.

Between 1996 and 2016 Cape Town’s population increased by 56% to more than 4,3 million residents, and over the same period there was a 94% increase in the number of households, to around 1,36 million.

• Approximately 17% of households in Cape Town live in informal dwellings, many with inadequate security and shelter. The provision of basic services is heavily impacted on the degree of informality and where an informal dwelling is situated. For instance, if it is on privately-owned land, the City may not install services without permission or if the settlement or backyard is too densely populated to allow for the installation of services.
• Urbanisation will continue and the associated growth in informality, especially considering the dire national economic conditions in South Africa. This is not a problem that is unique to Cape Town, but it is perhaps exacerbated by the limited suitable land and topography of Cape Town as a Peninsula.
• Human settlements delivery is beset with challenges, including R1,3 billion in housing projects under threat from ongoing orchestrated land invasions, national budget cuts reducing our Urban Settlements Development Grant by R118 million this year alone, a weak economy and regulatory red tape.
• In the 2018/19 financial year, the City’s Human Settlements Directorate spent approximately 95% of its Urban Settlements Development Grant funding and for the 2019/20 financial year, despite the substantial impact that COVID-19 had on its operations, it spent 94% of the allocation. This illustrates the City is able to deliver on State projects as earmarked, but the need is pronounced and a new, whole-of-society approach is required. All suitable City-owned land must continue to be assessed including suitable land in and near the Cape Town CBD and other urban centres with various different uses from golf courses to mixed use areas to determine whether some of these properties could be developed for affordable housing opportunities, among others. All workable options continue to be explored to see how to increase the affordable accommodation stock in Cape Town or to help enable the provision of more stock in the market.

‘We encourage the people of Cape Town to have a look at the draft strategy, to help us reimagine a more future-fit Cape Town,’ said Councillor Booi.

Market and State failure calls for major reform
This strategy recognises the extent of the informal housing that is prevalent within Cape Town. It argues that this informality is partly due to market failure, whereby the cost to produce a house in well-located areas has outstripped the ability of a household to afford it. State failure is another reason for the increase in informality whereby government’s national housing programmes have been unable to keep up with the increasing and widespread housing needs of households, particularly those with a monthly income of R22 000 and below. The strategy talks to the need for major government reform. It requires that government be more inclusive, more consultative, and more aware of the impact of the human settlements system on individual households.

Seven strategic shifts required

• Reduce or remove the barriers to expanded housing provision that are within the City’s authority and ambit
• View housing provision as an inclusive process involving a number of actors and stakeholders where the City is an enabler, an advocate for inclusive housing and provider of opportunities
• Acknowledge the importance of location for integrated and sustainable human settlements
• Recognise the necessary balance of rental and ownership to meet affordability demands
• Develop practical and realistic compliance regulations that ensure the safety of residents
• Incentivise the transformation and regularisation of informal dwellings into formal housing
• Implement measures that affect human settlements overall and not just housing opportunities

Housing markets are inter-connected; what happens in one end will affect the other. The City wishes to support housing markets that meet the needs of all who participate in it. Therefore, the principles of the draft Human Settlements Strategy are applicable to households of all income levels.

View and comment on the strategy
Please visit www.capetown.gov.za/haveyoursay. In addition, the executive summary of the strategy will be available in the three official languages recognised by the City at subcouncil offices during the public participation period.

Submit comments
• By email: Hspolicy.Research@capetown.gov.za
• In writing: to be submitted at any of the City’s subcouncil offices
• Online: www.capetown.gov.za/haveyoursay
• Via WhatsApp: 063 299 9927

The City’s Public Participation Unit will assist people living with disabilities who are unable to submit written comments to have their objections recorded and submitted to the City.

For special assistance please contact: Mbuthokazi Patience Kubashe at 021 400 9808 or Mbuthokazi.Kubashe@capetown.gov.za

For more information contact Hspolicy.Research@capetown.gov.za

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