Social Housing a Key Driver of Economic Growth and Job Creation

Social Housing a Key Driver of Economic Growth and Job Creation

30 October 2020 In his 2020 Medium-Term Budget Policy Statement Minister Tito Mboweni stated that investment in Social Housing is a key driver of economic growth and job creation with total investment from this programme to be R20 billion over the next 10 years.

Central to government’s Economic Reconstruction and Recovery plan is the development of Infrastructure through the newly created Infrastructure Fund which is starting to show results.

Included in the plan are subsidies of R2.2 billion that will support the Social Housing Programme aimed at poor, working South Africans. A further R6.7 billion has been contractually committed to this programme with the expected total investment from this programme to be R20 billion over the next 10 years.

Rory Gallocher, CEO of the Social Housing Regulatory Authority (SHRA), states, “This is good news and comes timeously on the back of our recent SHRA Investment Seminar which highlighted the strategic role of social housing in the Human Settlements portfolio”. 

The SHRA Investment seminar was held during September in order to communicate opportunities for partnerships with the SHRA aimed at investment in social housing infrastructure in order to rebuild our country’s economy ensuring that no-one is left behind. The seminar was attended by potential investors, developers and contractors who are able to partner with the SHRA by either funding projects or proposing projects; government departments dealing with infrastructure development or funding; as well as National Treasury. 

Gallocher stated, “In order to achieve the target of 30 0000 housing units by the end of the Medium-Term Strategic Framework (MTSF), the SHRA must have investors, including funders and delivery partners, on board that believe in the social housing mandate”.  

With the current economic climate, the demand for affordable housing is increasing and more jobs are needed. Social housing can contribute largely to the economic recovery of the country, but this can only be achieved with investors and delivery partners on board.