There is a need to achieve greater scale in delivery and improve conditions for private-sector investment in social housing, National Treasury pointed out in its 2021 Budget Review.
Rory Gallocher, CEO of the Social Housing Regulatory Authority (SHRA), explains that delivering on social housing in South Africa remains an imperative, and for which, the SHRA continues to work towards securing private investment.
The SHRA, which is an agency of the Department of Human Settlements, aims to achieve 30 000 housing units by the end of government’s Medium Term Strategic Framework. It requires funders and delivery partners to assist in implementing its social housing mandate.
“We call on investors to be proactive in ensuring that we can deliver on the country’s social housing development needs. We can achieve this only through strategic partnerships.”
Gallocher re-emphasised the importance of public-private partnerships, which Finance Minister Tito Mboweni alluded to in the Budget review on 24 February.
Minister Mboweni called for renewed collaboration between the public and private sectors encouraging partnerships between various stakeholders, including South Africa’s private sector, in developing and building the country’s infrastructure and revitalising the economy – all underpinned by the principles of “shared risk and shared reward”.
Capital investment by the public and private sectors is critical to grow the economy and reduce unemployment and poverty. “It is impossible to stress the importance of investing in infrastructure, particularly in housing development, which underpins a healthy economy,” adds Gallocher.
Meanwhile, the Budget review pointed out that of the six Integrated Residential Development Programmes to be delivered by the Department of Human Settlements, 10 are social housing projects.
“It is encouraging that social housing will continue to play a role in creating livelihoods by providing dignified living spaces and creating employment opportunities thus unlocking both direct and indirect socio-economic growth. We are encouraged by government’s commitment to continue to realise the value of social housing delivery,” says Gallocher.