Category: South Africa Government

The Department of Human Settlements is implementing a range of measures to curb the underspending of grants, and improve the delivery of housing and related infrastructure.

Responding to oral questions in the National Council of Provinces (NCOP) on Tuesday, Human Settlements Minister Thembi Simelane said the interventions aim to ensure that allocated funds lead to the delivery of serviced sites, housing units and bulk infrastructure, while minimising underspending across all levels of government.

She revealed that provinces and metropolitan municipalities returned millions of rands in unspent Human Settlements grants during the 2024/25 financial year.

At provincial level, a total of R8.801 million from two key grants was surrendered to the National Revenue Fund. This included R5.951 million from the Human Settlements Development Grant (HSDG) and R2.850 million from the Informal Settlements Upgrading Partnership Grant (ISUPG).

Gauteng accounted for the largest share of unspent HSDG funds at R5.529 million, followed by Mpumalanga and Limpopo, while smaller amounts were returned by other provinces.

Under the provincial ISUPG, Gauteng again recorded the highest underspending at R2.553 million, with additional amounts surrendered by the Free State, North West, Northern Cape and Eastern Cape.

At municipal level, the total amount returned was significantly higher, reaching R174.873 million across two grants.

The Urban Settlements Development Grant (USDG) accounted for R105.866 million in unspent funds, with Nelson Mandela Bay returning the largest portion at R74.137 million. This was followed by eThekwini (R15.678 million), the City of Cape Town (R13.451 million) and the City of Tshwane (R2.6 million).

A further R69.007 million was returned under the Metropolitan Informal Settlements Upgrading Partnership Grant. Mangaung and Nelson Mandela Bay recorded the highest underspending at R34.111 million and R34.707 million, respectively, while smaller amounts were returned by the City of Tshwane and Buffalo City.

Measures to strengthen grant spending performance

Simelane said the department has introduced several measures to strengthen grant spending performance across all spheres of government.

“Key initiatives, which include the quarterly performance review sessions for provincial, municipal and human settlements entities, allow these organisations to report on their performance and enhanced monitoring and early warning systems that help the department to identify underperformance early in the financial year and take timely action,” the Minister said.

The department is also enforcing provisions of the Division of Revenue Act, allowing for the conditional allocation, withholding and reallocation of funds from persistently underperforming provinces to those with the capacity to spend effectively.

Additional interventions include technical and capacity support to provinces and metros, such as the deployment of built environment specialists and project management assistance, as well as improved planning alignment to ensure readiness in areas such as procurement, land availability and bulk infrastructure before funds are allocated.

Simelane said quarterly MinMec (Minister MEC) performance engagements with accounting officers and political leadership are being used to strengthen accountability for grant performance and ensure adherence to compliance requirements.

The department has also convened rollover workshops with metropolitan municipalities, provincial treasuries and the South African Local Government Association to support credible applications to National Treasury.

“The department, together with provincial treasuries and other transferring officers, is part of the committee that assess rollover applications of the metropolitan municipalities, and the department plays a significant support role for the metros.

“These initiatives aim to ensure that allocated funds lead to the delivery of serviced sites, housing units, and bulk infrastructure while minimising underspending across all levels of government,” Simelane said. – SAnews.gov.za

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Approximately 3.4 million households have registered for government housing assistance, Human Settlements Minister Thembi Simelane told the National Council of Provinces (NCOP) on Tuesday.

Responding to questions for oral reply, Simelane said the figure is drawn from the National Housing Needs Register (NHNR) – the department’s official database of individuals and households seeking State housing support.

She noted that Census 2022, released by Statistics South Africa, does not provide a single official national housing backlog figure, but instead offers household and dwelling data used to derive estimates.

According to the census, South Africa had about 17.8 million households in 2022, with roughly 12% to 13% living in informal dwellings, including informal settlements and backyard structures.

“Using Census 2022 as the demographic base, national housing backlog estimates currently in use range between approximately 2.1 million housing units (Institute of Race Relations – Public Policy Estimates, 2025) and 2.2 million housing units (Centre for Affordable Housing Finance 2024/25).

“While Census 2022 does not state a backlog figure directly, the most recent, widely cited and sector accepted backlog estimate is between 2.1 and 2.4 million housing units, derived using Census 2022 household data as the baseline,” the Minister explained.

Simelane emphasised that while the department does not publish a single verified official “housing backlog” figure, the NHNR remains the most reliable indicator of demand for housing assistance.

On government interventions, she said in line with the Medium Term Development Plan for the 2024/25 to 2029/30 period, the department has planned to deliver 230 000 full subsidy units and 314 000 serviced sites over five years, with existing programmes, such as the Upgrading of Informal Settlements Programme, playing a key role.

Flood damage verification process underway

Simelane also confirmed that a verification process will be conducted to assess the impact and cost of recent flood damage in Limpopo, Mpumalanga, Gauteng, Eastern Cape and KwaZulu-Natal to determine the required interventions in those areas.

She said the process will determine the necessary interventions, including the provision of emergency fire kits in informal settlements, assessments by the National Home Builders Registration Council (NHBRC) for partially damaged homes, and Temporary Residential Units where properties are completely damaged.

“Once the project has been concluded, the department is able to confirm the expenditure base on the work done,” the Minister explained.

Simelane said all affected provinces have already conducted preliminary impact, and a cost analysis and impact on infrastructure as a motivation to apply for the Disaster Relief Fund. – SAnews.gov.za

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Human Settlements Minister Thembi Simelane has outlined an ambitious plan to unblock and complete more than 200 stalled housing projects across South Africa as government moves to address long-standing delays affecting thousands of households.

Responding to questions for oral reply in the National Council of Provinces (NCOP) on Tuesday, Simelane said the Department of Human Settlements has, as of the 2025/2026 financial year, targeted to unblock about 212 projects classified as blocked, abandoned or stalled.

“These projects are collectively valued at approximately R37 billion,” she said.

She said the intervention is informed by provincial business plans aimed at accelerating delivery and restoring affected developments.

The Free State has been identified as the hardest-hit province with 154 unblocked projects requiring urgent intervention. She said many of these developments were left incomplete due to contractor abandonment and poor workmanship.

“In some instances, only foundations or slabs were laid, while in others, the materials were not of good quality, resulting in the product that is not satisfactory.”

The Minister noted that while Gauteng has 12 blocked projects, these often involve mega projects, usually hostels and their upgrades affecting a significant number of households, rather than a small number of housing units.

Across other provinces, the department has identified nine stalled projects in KwaZulu-Natal, four in Limpopo, two in Mpumalanga, and three in the Northern Cape.

While the Eastern Cape has no officially stalled projects, Simelane highlighted ongoing challenges related to mud housing, which she said require targeted intervention due to delays in previous programmes.

In the North West, 21 large-scale or “mega” projects have been identified, many of which serve between 500 and 800 households per development. Administrative delays were cited as a key factor affecting progress in the province.

The Western Cape has seven blocked projects, with delays largely attributed to infrastructure constraints, land availability challenges, and legal disputes that have stalled implementation.

“Most of the projects will emanate even from a court outcome or a court finding, or in the middle, they will take one another to court, and that stalls projects. We have taken steps to make sure that there’s multiple interventions and ratifications.

“We …have a team in terms of suspension of payments where the quality and work has not been done, and submission to [the Department of] Public Works in relation to contractors who don’t comply,” the Minister said.

She said the department is prioritising projects that have been delayed for more than 10 years or more, particularly in the North West and the Free State.

“We are focusing particularly on projects dating back to between 2006 and 2014 to ensure their reactivation and completion,” she said.

Government is also working to unlock the Community Residential Units (CRU) programme and improve bulk infrastructure provision through targeted allocations within housing grants.

Simelane revealed that during the 2024/2025 financial year, more than 200 projects were identified for unblocking, resulting in the delivery of at least 815 housing units nationwide.

She added that the department is strengthening support to provinces through conditional grants to ensure that stalled projects are prioritised and completed. This includes interventions in emergency housing and disaster-affected areas, particularly in rural provinces.

“In provinces like KwaZulu-Natal and the Eastern Cape, some projects were delayed due to disasters and slow responses, leaving beneficiaries without homes for extended periods.”

Simelane noted that progress has been made in relocating some communities affected by previous disasters, including flood victims in parts of KwaZulu-Natal, although several projects remain ongoing.

The Minister reaffirmed government’s commitment to ensuring that incomplete housing projects are finalised and that affected communities are not left behind. – SAnews.gov.za
 

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Public Works & Infrastructure Minister Dean Macpherson this morning conducted an oversight visit to the construction of the new Johannesburg Deeds Office at 85 Anderson Street in Marshalltown.

Macpherson said the new office will play a key role in driving the renewal of the Johannesburg Central Business District. The building is the first new high rise in the Johannesburg City Centre in more than 20 years.

The new Deeds Office, which is being constructed at a cost of approximately R769 million, will provide modern facilities for property registration services while contributing to broader efforts to restore economic activity and investment in the inner city. 

The project is currently 78% complete, with significant progress already made on the main tower block and façade installations underway on several floors.

Macpherson said the project stands as a testament to the capability and expertise within the Department of Public Works & Infrastructure and demonstrates how well-managed infrastructure projects can play a key role in restoring confidence in South Africa’s urban centres. 

In this way, the Minister said catalytic construction projects of this nature can help drive economic growth, which will in turn support further job creation.

“As we work to turn South Africa into a construction site, the Johannesburg Deeds Office project shows how infrastructure investment can help breathe new life into our urban centres while ensuring that government facilities are modern, efficient and capable of serving the public. 

“As the country’s economic centre, Johannesburg’s inner city has enormous potential, but for too many years it has suffered from neglect, declining infrastructure and a loss of investment – something this project will help to reverse,” Macpherson said.

“When I entered office, my aim has always been to turn the Department into the economic delivery unit of South Africa, and projects such as this one help us achieve that goal through investment that generates economic activity in the inner city and contributes to job growth

“This is exactly the kind of project the department should be known for, and we look forward to replicating the work done here in communities across the country,” he said.

The Minister said the project also demonstrates the role that infrastructure investment can play in supporting economic participation and job creation for neglected communities. 

During construction, the project created employment opportunities for local workers while also supporting the participation of small businesses through subcontracting opportunities.

The development has furthermore incorporated skills development and training opportunities for young people, including apprenticeships and technical training linked to the construction sector, helping to prepare the next generation of artisans and built environment professionals.

“Public infrastructure must do more than simply provide buildings for government departments. It must help unlock economic activity, support jobs and contribute to the renewal of our cities. 

“These kinds of catalytic projects will be essential in the months ahead as we continue working to demonstrate the progress being made while contributing to building a better South Africa,” the Minister said. – SAnews.gov.za

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Small Business Development Minister Stella Ndabeni says government is committed to creating an environment that enables small businesses to thrive.

“Over the course of this seventh administration, we will, as the Department of Small Business Development (DSBD) and the Small Enterprise Development Finance Agency (SEDFA), provide financial and non-financial support to one million Micro, Small, and Medium-sized Enterprises (MSMEs),” Ndabeni said on Tuesday.

Speaking at the 14^th Annual Proudly SA Buy Local Summit and Expo held at the Sandton Convention Centre, Johannesburg, Ndabeni said the government will implement the Red Tape Reduction Framework and continue to support municipalities in adopting the E-Registration System.

The Red Tape Reduction Framework provides municipalities and businesses with practical tools and resources to address municipal red tape issues to improve the business environment for small businesses. 

The E-Registration System Program intends to reduce significant red tape and to create a more straightforward, efficient, and easily accessible business registration system across districts and local governments. 

“We will improve access to enabling business infrastructure and equipment and will scale-up access to finance for MSMEs across all segments, working closely with other Development finance institutions (DFIs), banks and non-bank financial institutions,” Ndabeni said. 

Ndabeni said government will be looking to better integrate financial offerings with improved market and investment readiness support, as well as with post-investment support for business sustainability.

“MSMEs play a crucial role in addressing some of our country’s biggest challenges, including unemployment and inequality. Every rand spent at a local business helps circulate money within our economy, enabling businesses to grow, employ more people, and build communities. 

“MSMEs employ millions of people, with most reports suggesting this could be as high as 60% of employed persons in the country. They create pathways for young people entering the workforce, they empower women entrepreneurs, and they prop up local economies across the length and breadth of South Africa.

“They give innovative ideas the chance to grow into commercially thriving enterprises. But these MSMEs can only succeed when communities support them,” she said.

The Minister emphasised that when locally produced products are purchased, it helps a small business owner to pay wages, expand their operations and reinvest in the community. 

“That purchase might help someone hire a new employee, train an apprentice or open another store. We will ensure that the new Business Licensing Bill makes it easier, not more difficult, to start and operate a small business in South Africa. 

“We have the talent and the quality but still seem enamoured with global brands. This is where Proudly SA plays such an important role, and I encourage you to pick up your promotional and advocacy work to profile our local brands,” the Minister said.

Ndabeni urged the government to support e-commerce platforms that promote locally produced goods.

“The global online platforms that offer our consumers cheap mass- produced goods at a fraction of our production costs are a real threat, and we have engaged with relevant countries through our bilateral trade negotiations. 

“We have also intensified our war on the illicit goods which leak through our ports of entry and are produced in backyard factories here at home,” the minister said. –SAnews.gov.za

 

 

 

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Convicted murderer and rapist Thulani Gcaleka has been rearrested following his escape from custody just over a month ago.

According to the Department of Correctional Services (DCS), Gcaleka was rearrested in Gauteng during the early hours of Tuesday after escaping from the Sevontein Correctional Centre, under the Pietermaritzburg Management Area in KwaZulu-Natal.

“The National Commissioner, Makgothi Samuel Thobakgale, established a dedicated Track and Tracing Team within his office to focus on high-profile and high-risk escapees.

“This specialised team works to augment and support existing regional capabilities, ensuring a coordinated and intensified response to such incidents. The rearrest of offender Gcaleka is a direct result of these strengthened efforts,” the department said.

The offender escaped while he was part of a cleaning work team assigned to duties at the prison farm.

He is serving a life sentence for attempted murder, attempted rape, rape, common robbery and housebreaking with the intent to commit an offence.

“The department reiterates that escaping from lawful custody is a serious offence and will not be tolerated. Escapees pose a significant risk to public safety, and the department remains resolute in ensuring that all those who evade custody are swiftly traced and returned.

“Offender Gcaleka will face additional criminal charges arising from his escape from lawful custody. Internally, he will be reclassified to a higher security category and transferred to a maximum-security correctional facility,” the DCS added.

Following the escape, DCS announced that an internal investigation was underway to determine the circumstances leading to the incident.

“[Now], the Department confirms that disciplinary processes related to the circumstances surrounding the escape are ongoing, to ensure that appropriate action is taken against those found to have been negligent or complicit,” the DCS stated. – SAnews.gov.za

 

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President Cyril Ramaphosa is expected to deliver the keynote address at the News24 On the Record Summit kicking off on Thursday.

The summit will be held at the Cape Town International Convention Centre (CTICC) under the theme: “5 million jobs in 10 years”.

“The aim of the summit is to find practical solutions that will reach this employment target in 10 years.

“In support of the National Dialogue announced by President Ramaphosa, this News24 gathering involves small groups of expert practitioners in areas that have an impact on growth and jobs,” a Presidency statement on Tuesday said.

A wide range of participants including South African businesspeople, civil society representatives, civil servants, trade union leaders, key international stakeholders and political leaders are expected to attend.

“The On the Record summit follows a nine-month research project undertaken by News24 and the Africa Centre to consult around 60 influential South Africans across academia, business and civil society on tangible solutions that could be implemented to create five million jobs in the next decade,” the statement concluded. – SAnews.gov.za

 

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