Honourable Speaker
Honourable Chairperson, Albert Seabi and Members of the Portfolio Committee on Human Settlements
Honourable Members Fellow Cabinet Members
Deputy Minister of Human Settlements, Ms Tandi Mahambehlala Members of the Provincial Executive Committees
Director-General of the Department of Human Settlements, Dr Alec Moemi and Deputy-Director Generals
Chairpersons and Members of Boards and Councils of the Entities of Human Settlements

Chief Executive Officers of the Entities of Human Settlements Fellow South Africans and Ladies and Gentlemen

Good day,

It is my distinct honour and privilege to present before this august house the 2025 Budget Vote 33 on behalf of the Department of Human Settlements and its Entities, to give a detailed account of the undertakings we have made, and the current commitments as outlined in our Medium-Term Development Plan and Strategic Plan as a Portfolio.

We present this 2025 Budget Vote under the overarching theme “Leveraging technologies for resilient sustainable human settlements”.

Honourable Speaker,

Last week, on the 26th of June 2025, we celebrated the 70th anniversary of the Freedom Charter since its historic adoption in 1955, at Kliptown, by the oppressed South African people. Our forebearers used the gathering to tacitly frame their hopes and aspirations, and imagining an inclusive South Africa, belonging to all who live in it. The Freedom Charter aptly articulates the people’s perspective.

We have also marked one year since the Government of National Unity (GNU) was established post the May 2024 general elections. This milestone has demonstrated the capacity of our nascent democracy to leverage its maturity in placing the people’s interests above party political interests across the spectrum by different parties who formed the GNU.

The Freedom Charter's promise, "There shall be Houses, Security and Comfort”, impacted South Africa significantly by advocating for the right to decent housing and a secure living environment for all her citizens. This clause, aimed to ensure everyone could live where they choose, enjoy comfortable and secure homes, and raise their families without fear of displacement or inadequate living conditions. It eloquently states that unused housing space should be available to the people, including for rental and prices shall be lowered.

These views find sufficient expression in the work and housing delivery programmes of the Department of Human Settlements in its quest to build sustainable and integrated human settlements, which are closer to where our people live, work, worship, and where children are attending schools and enjoying safe recreational amenities.

We undertake and carry this work with humility and determination, guided by principles of good governance and excellence. We draw inspiration from an ancient Greek Philosopher, Aristotle when he posits that: “Excellence is never an accident. It is always the result of high intention, sincere effort, and intelligent execution; it represents the wise choice of many alternatives  - choice, not chance, determines your destiny.”

Honourable Speaker,

As part of the aspirations expressed in the Freedom Charter, the Honourable President, Cyril Ramaphosa, in his 2025 State of the Nation Address (SONA), gave us a clear instruction on what we need to do towards realising the ideals of the housing clause in the Freedom Charter.

He called on us to tackle inequality by reversing apartheid spatial planning, building houses in the city centres, closer to work and business opportunities and providing serviced stands to enable qualifying beneficiaries to build homes for themselves.

Over the next five years, 2024-2029, working with all our strategic partners, we have undertaken to deliver the following:

237,000 Breaking New Ground (BNG) units

314, 000 serviced stands

140,000 subsidies disbursed through various housing interventions to the missing middle

Upgrading 4,075 informal settlements

15, 000 social housing units

Register and handover 80, 000 title deeds, and

Improve the management of available rental stock by achieving a 95% tenanting rate and a 90% collection rate in social rental stock.

This is what we are aiming to achieve over the current Medium Term Development Plan (MTDP 2024-2029).

Honourable Speaker,

As part of unpacking the MTDP, I went on a roadshow and visited six provinces, namely, KwaZulu-Natal, Gauteng, North West, Eastern Cape, Free State and the Western Cape. What has been clear throughout all these visits, is that the Department of Human Settlements has developed a unique participative human settlements strategy that allows it to turn the needs of South Africans into actionable delivery programmes. Many of these have been implemented and are being taken forward in partnership with business and communities.

As we unpacked and gained a better understanding of the performance of our sector in each province, it became apparent that we have similar challenges across the whole country. These are informal settlements, unfinished or stalled housing projects, budget

constraints and its negative impact on the housing delivery chain and a housing backlog.

The challenges we have identified are not insurmountable. To make a dent in the housing backlog, we, together with our implementing agents, strategic partners, and the community at large, must put our shoulder to the wheel to prioritise the completion of all the blocked projects. We must complete what we had started and prioritise the completion of existing housing projects.

As a result, over the next five years, the Department’s delivery efforts will be driven by a focused agenda that seeks to consolidate past investments, respond to urgent needs, and deepen our impact.

Therefore, as we begin to lay the foundation of the recently approved 2024-2029 MTDP, we have committed to deliver the following during the 2025/2026 financial year:

41,944 housing units

32,250 fully serviced sites with water, sewer, electricity, and roads

4,282 units through the First Home Finance programme, originally known as FLISP (Financially Linked Individual Subsidy Programme)

3, 000 social housing units, and

Eradicate 8,047 mud houses

Central to us achieving these targets, is building, and sustaining partnerships with strategic stakeholders within the human settlement value chain. I recently met with Abahlali Basemjondolo in KwaZulu-Natal to discuss several ways of partnering with them in our efforts to upgrade our informal settlements. We made a commitment that we will engage their provincial leadership in Gauteng, Mpumalanga, and the Eastern Cape, and other stakeholders in the human settlement sector across the country as part of our ongoing efforts to strengthen relations.

Honourable Speaker,

In support of the MTDP is the budget, whose fiscal cuts dictate that we do more with less. Our current MTEF (2025-2028) allocation stands at R101.2 billion, with the current year’s allocation at R34 billion. Of the R34 billion allocation for the current financial year, R30.8 billion is grants to Provinces and Metros. This constitutes 90.7% of our total current budget allocation. The R30.8 billion grant allocation is assigned as follows:

R16.9 billion is to be transferred to Provinces, making up 54% of the grant allocation, while,

R13.9 billion is to be transferred to Metros. This makes up 46% of the grant allocation.

Our provinces, metropolitan, district, and local municipalities have suffered and bore the greatest brunt of the climate change. This has become a serious challenge to our limited resources. Over the past few months, we have had countless natural disasters, in the Western Cape, KwaZulu-Natal, Gauteng, the Free State and recently the devastating disasters in the Eastern Cape. The current budget allocation of R336 million is unlikely to meet our emergency housing needs.

We remain grateful for the support we continue to receive from non-government organisations during such disasters. Their contributions help us to deliver much needed support and services to our people. I want to acknowledge their incredible support, which will never go unnoticed.

The Human Settlements family continues our commitment in allowing designated groups to participate in economic activities by setting aside a portion of the annual allocations of conditional grants to companies owned by women, youth, persons with disabilities and military veterans in the awarding of contracts.

In the 2024/25 financial year, the allocated grant funds to this group by the sector amounted to R4.063 billion and were accounted for by Provinces and Metros. This was also the case in the 2023/24 budget year.

Honourable Speaker,

We remain concerned about the slow delivery of title deeds to beneficiaries. The major challenge to this project is the delayed and stalled processes of township establishment and proclamation. In this regard, we have resolved to seek concessions in respect of certain provisions of the Spatial Planning and Land-Use Management Act (SPLUMA) and the National Environmental Management Act (NEMA) from the respective Ministries, which would enable us to unlock title deeds for 398,194 households.

Accordingly, the acceleration of the issuing of title deeds will be a critical focus area during the next five years, to ensure security of tenure and unlock household asset value. We will continue to prioritise our work as part of Operation Vulindlela to accelerate delivery, because coordination between various sector departments is central in assisting to unblock some of the challenges that currently exist.

Yesterday, we were at Bishop Lavis, here in the City of Cape Town to hand over title deeds to senior citizens or their children to those who have transitioned. This moved me as a title deed is not merely a piece of paper. It ensures security, stability, and a promise of a better future. It is more than a legal document; it is a tangible affirmation of one’s right to land, to property, and to a home. It provides families with the ability to invest in their futures, to build wealth, and to create an environment where future generations can flourish.

Honourable Speaker,

A few years ago, the Department developed the Housing Subsidy System (HSS). The HSS portal is supposed to serve as a housing needs register data bank and information system. However, it is a legacy system which is not compatible with the latest technologies and lacks the critical component of citizen engagement.

Working with the State Information Technology Agency (SITA), we are in the process of developing the National Digital Human Settlements Management System, which will modernise the way we manage human settlements data and improve coordination across departments. This initiative will address current inefficiencies by providing a centralised platform for better resource management and service delivery.

This system aims to improve efficiency, transparency, and accountability in the management of construction projects, ensuring the timely completion of projects and accurate allocation of resources. The integrated software solution aims to streamline and automate various processes related to managing human settlements. It will help government housing authorities, urban planners, and city administrators to efficiently manage housing, land, infrastructure development, housing beneficiary lists and related aspects of human settlements.

The development of a comprehensive, integrated online National Digital Human Settlements Management System (NDHS MS) will further enable citizens to apply online for a housing product and be informed about the outcome of their applications.

The Housing Development Agency (HDA), an entity of the department, has also developed and piloted the Beneficiary Experience Tracking Application (BETA), a digital platform to monitor beneficiary experience of those who have received a housing subsidy from the state. This allows us to understand the impact of state subsidies through a spatial transformation framework of analysis.

Spatial transformation remains a central pillar of our housing agenda, aiming to reverse the legacy of apartheid-era spatial planning by fostering inclusive, well- connected, and economically vibrant communities, and BETA has enabled the collection of real-time feedback from beneficiaries and improved citizen experience, aimed at strengthening accountability and service delivery. Accordingly, the HDA has been analysing a set of pillars driven extensively by data and indicators to measure Spatial Transformation in our projects, areas, towns and cities, thereby highlighting the impact of human settlements investments.

Honourable Speaker,

The renewal of the governance structures of the Human Settlements entities remains a significant priority to ensure stability at all our entities. Functional Boards and Councils have been appointed for the Housing Development Agency (HDA), the National Home Builders Registration Council (NHBRC), and the Social Housing Regulatory Authority (SHRA), following the expiry of the terms of the Boards and Councils in November 2024.

The process for appointing members to fill vacancies of the Boards and Councils of the Community Schemes Ombud Service (CSOS), the Property Practitioners Regulatory Authority (PPRA), the Housing Development Agency (HDA) are at an advanced stage, and the National Housing Finance Corporation (NHFC) its process is of appointing the new Board is currently underway. It is anticipated that all the Boards will be fully functional by the end of July 2025.

We are mindful that the homes we regulate today must serve the needs of tomorrow. These include building and regulating homes that are resilient to climate change, structurally sound, and grounded in dignity for all.

The National Home Builders Registration Council (NHBRC) is committed through enhanced technical oversight, expanded training for emerging contractors, and intensified site inspections, to drive quality and safety in every corner of the housing value chain. We are also evolving our regulatory approach to better support municipalities and provincial departments in delivering at speed, without compromising on standards.

Honourable Members,

The tragedy we witnessed just a year ago, when a residential building under construction collapsed in George, remains imprinted in our collective conscience. It serves as a painful, yet urgent reminder of the cost of regulatory failure. Sadly, not only were lives lost, but families lost their livelihoods.

Consequently, the NHBRC has a huge task to rebuild and sustain people’s trust in the institution. I have full confidence in the institution that it can turn itself around and return as an institution we are all proud of. In this regard, I am happy to announce that the NHBRC has launched an internal review of all high-risk projects under its purview. Furthermore, it has strengthened its inspectorate’s training and escalation protocols.

With this, we want to send an unequivocal message to the sector: compliance is non- negotiable.

We also recognise that resilience in housing must be more than structural; it must be environmental. In a time of growing climate volatility, the NHBRC is taking deliberate steps to integrate sustainability into our standards and operations.

We are scaling up our work in Innovative Building Technologies (IBTs), supporting innovation that can deliver cost-effective, low-carbon, and climate-adaptive homes. Our goal is to move beyond pilot projects and embed IBTs into mainstream delivery, particularly in areas prone to floods, fires, and other climate-related risks.

Over the past five years, the NHBRC played a pivotal role in supporting housing innovation, having certified over 40 Innovative Building Technologies (IBTs) and piloted their implementation in government-funded projects in Gauteng, Limpopo, and the Western Cape. These initiatives helped test the viability of environmentally sustainable and cost-effective construction methods.

Before the end of this year, we will convene the International Summit on Mainstreaming Innovative Building Technologies (IBTs). The purpose of the summit will be to rally domestic and international partners to accelerate the delivery of housing and sustainable human settlements through the implementation of innovative building technologies.

We would like to see the actual implementation of these IBTs through the establishment of IBT residential areas. We intend to provide serviced stands to enable IBT partners to show us what they can deliver. The finished products will be handed over to beneficiaries. With this, we hope to empower our people and inform them of other available building options as opposed to the traditional brick and mortar that we are all accustomed to.

Through the NHBRC, we are committed to partnering with all spheres of government and industry to not just build homes, but a resilient, fair, and future-ready housing sector.

Honourable Speaker,

Between 2019 and 2024, the National Housing Finance Corporation (NHFC) made significant strides in advancing its developmental finance mandate, playing a pivotal role in expanding access to affordable housing and deepening transformation in the sector.

Over this period, NHFC disbursed a total of R4.8 billion, enabling the delivery of 147,607 housing opportunities, including the First Home Finance subsidy programme, and creating close to 20,000 job opportunities nationwide.

These include employment generated from project-funded developments as well as skills development and learnership programmes specifically targeted at empowering

the youth. This underscores our commitment to inclusive economic growth, youth empowerment, and sustainable job creation within the built environment and housing sectors.

Through the First Home Finance Subsidy programme, we continued to expand home ownership by exceeding our target of 20,000 units and delivering more than 28,000 First Home Finance units to qualifying beneficiaries.

The NHFC’s contribution was a total of 15,941 subsidy applications approved, translating into R1.08 billion in approved subsidies. Of these, 14,301 subsidies were disbursed, amounting to a value of R803 million.

Notably, the efforts attracted R7.7 billion in private sector funding, demonstrating strong confidence and willingness by financial institutions to co-invest in the low- to middle-income housing market.

To promote accessibility and inclusivity, advocacy materials were translated into ten official languages, ensuring that information about the subsidy reaches all communities.

Regarding transforming the sector, we recently launched the Emerging Developer Incubator and Post Investment Support Programme (EDIP). The EDIP is a flagship transformation initiative aimed at building a pipeline of black-owned, women-led, and youth-driven developers, as well as persons with disabilities and military veterans.

Honourable Speaker,

The NHFC has institutionalised a transformation-first approach to project funding and procurement. Designated groups are being prioritised in the allocation of funding and participation across the NHFC’s supply chain, helping to redress economic imbalances of the past.

The NHFC is positioned to address persistent market failures across both the supply and demand sides of the affordable housing value chain. In response to this urgent need, we will play a transformative role in reshaping the housing landscape and driving inclusive economic growth.

Through its catalytic function, the NHFC will crowd in private sector investments, expanding the pool of funding available to intermediaries and developers active in the affordable housing space. Central to its approach is fostering greater collaboration across the entire housing value chain, raising additional capital (concessional and grant), ensuring that end-users gain access to affordable, well-located housing in quality, sustainable environments.

Between 2019 and 2024, through the Social Housing Regulatory Authority (SHRA), we delivered 13,885 social housing units across the country. These units were strategically located in urban centres and designated restructuring zones to support spatial transformation, economic integration, and access to services for low- to middle- income households.

Furthermore, the SHRA expanded its regulated portfolio from 36,305 units in 2019 to 46,809 by March 2024, which constitutes a 29% increase. Accredited institutions also grew from 28 to 42 during the five years.

In line with national priorities, the SHRA has fostered transformation through procurement, employment, and enterprise development. Procurement from women- owned businesses reached 41%, while efforts to include youth, persons with disabilities, and military veterans continues.

The SHRA has built strong partnerships with provincial governments, municipalities, the Housing Development Agency (HDA), and funders to facilitate land access, support project packaging, and unblock delivery constraints.

The people we serve, beneficiaries of our rental stock, are central to the success and sustainability of our projects. Therefore, sector challenges such as rental boycotts and construction mafias should be regarded as enemies to our progressive initiatives. Collectively, we must say yes to initiatives and programmes that seek to better our lives.

Honourable Speaker,

As of 2024/25, the SHRA maintained a pipeline of 64 active projects across eight provinces, representing 30,182 potential units, 95% of which are majority black-owned or controlled. Of the 51 capital-funded projects in implementation, 16 were under construction, 15 were being tenanted, five were in planning, and eight were on hold due to viability concerns.

The SHRA provided ongoing technical support, conducted regular compliance inspections and audits, and initiated legal and administrative interventions to stabilise underperforming institutions. A resolute “distressed institutions” budget has been proposed to respond proactively to regulatory risks and protect the integrity of the programme.

Moving ahead, over the next five years, the SHRA will aggressively scale up the completion of social housing units by unlocking stalled projects, accelerating approvals, and enhancing project viability.

Without provinces, we won’t be able to achieve our targets. Thus, the SHRA will work with Provincial Steering Committees (PSCs), activate underperforming provinces through stronger intergovernmental coordination, and leverage development management tools to improve project turnaround times. A key innovation is the use of large-scale developer agreements and “on-development” contracting models to accelerate project start-up and fast-track unit delivery.

We will protect our investments through strengthening regulation, compliance, and institutional stability by ensuring compliance, accreditation, and regulation focus on enforcing sector standards through tenancy audits, compliance inspections, and building condition assessments.

We will also implement early intervention strategies to prevent Social Housing Institutions’ (SHI) distress, monitor rent collection trends, and maintain financial oversight. Accreditation processes will be overhauled to attract capable entrants proactively, supported by accelerator partnerships and training interventions. A panel of skilled, transformed service providers will be established to assist with governance, legal, and operational turnaround for struggling SHIs and projects.

In addition, the SHRA will work closely with municipalities to ensure that social housing billing is viable and does not add to distress of institutions.

Regarding inclusive growth, sector support, and capacity building, the SHRA will deepen support for sector transformation and inclusive growth through the Institutional Investment Grant (IIG), targeted mentorship, and technical assistance for black, women-owned, youth-owned, and people with disabilities-owned entities. At least 30% of grant expenditure will be earmarked for designated groups.

Honourable Speaker,

We recognise the repurposing of well-located government-owned buildings as a critical strategy to expand affordable rental housing in urban cores and support spatial transformation. Accordingly, through SHRA, we will drive inner-city revitalisation by identifying and converting underutilised buildings into social housing, particularly those released by the Department of Public Works and Infrastructure (DPWI) and the HDA.

The DPWI has already released over 2,700 hectares of land. An additional 1,000 hectares will be unlocked this year. At least four SOE-owned buildings are in the pipeline for release, thus unlocking space for high-density, affordable living in our cities.

We will also prioritise innovation through piloting green Innovative Building Technology (IBT) projects and integrating spatial data to align with the District Development Model (DDM). Together, these actions aim to promote liveable, sustainable, and economically inclusive neighbourhoods.

Illegal occupation of property is a serious challenge to our development plans. During the current financial year, we will develop a Policy Framework for the Prevention of Illegal Eviction from an Unlawful Occupation of Land Act (PIE) to give effect to the latter’s amendments. We will also embark on countrywide stakeholder consultations and engagement sessions with various sector partners in the human settlements value chain on the Prevention of Illegal Eviction from an Unlawful Occupation of Land Act (PIE) draft policy.

We recognise that without the right skills, it would be impossible to achieve our goals. Therefore, the Department will continue with the comprehensive review of its organisational structure. This process is aimed at aligning the macro and micro- structures with the 2025–2030 Strategic Plan and the objective-based budget framework. Despite delays, the review remains a strategic priority as it will address the Department’s current capacity challenges, particularly in the context of a reduced Compensation of Employees budget.

As part of its strategic workforce planning, the Department will also intensify efforts around the identification and retention of scarce and critical skills, which are essential for delivering on the Department’s strategic priorities. This includes proactive talent management, targeted recruitment strategies, and career pathing initiatives to mitigate skills gaps and promote continuity in key functional areas.

In closing,

On 10 July 1993, when delivering his acceptance address at the Clark University Investiture, Atlanta, Georgia in the United States of America, former President Nelson Mandela said the following, “the Freedom Charter still provides a firm moral basis for law and law making. It is placed before South Africa, an inclusive basis for citizenship at a time when the policy of exclusion by the application of violence was at its height.” Therefore, it is of no coincidence that in the month of July 1918, when a giant was born 107 years ago, we pay tribute to the architects of the Freedom Charter.

As I table this Budget Vote, we are mindful of the sacrifices that were made for us to be here today. I therefore commit myself, my team, and the Human Settlements family to do everything in our power, to continue to restore the dignity of our people through integrated human settlements. This we will do as we again take ownership of “our” clause in the 1955 Freedom Charter of ensuring there are Houses, Security and Comfort.

We present to you a people-centred budget!

I thank you.