Government cannot solve housing crisis alone, says minister
Human Settlements Minister Thembi Simelane has issued a stark warning that South Africa's massive housing shortfall demands an entirely new approach, urging the private sector and financial institutions to join forces with government in a coordinated push to deliver homes at an unprecedented scale.
Speaking at the Second Local Government Residential Property Summit in Modderfontein, Johannesburg, on Thursday, Simelane laid bare the enormity of the task facing the country. The housing backlog currently sits at roughly 2.6 million units, directly affecting more than 12 million South Africans who lack adequate shelter.
"The State cannot address this challenge alone. Delivery at scale requires structured and sustained partnership with the private sector and other industry role players."
The minister outlined a range of pressures compounding the crisis, including rapid urbanisation, escalating construction expenses, crumbling infrastructure and growing climate-related threats. Drawing on international forecasts, she noted that between 68% and 70% of the global population will reside in cities by 2050, with Africa among the hardest-hit continents — a reality that will heap further strain on metropolitan centres like Johannesburg.
Despite this daunting landscape, Simelane reaffirmed the government's constitutional duty to progressively ensure access to decent housing, insisting the real question is not whether delivery happens but how it can be done more effectively and at greater volume.
Innovation and transformation at the heart of new strategy
Simelane positioned the summit as a vital opportunity to bring government, property developers and financiers onto the same page, while driving forward creative public-private partnerships capable of speeding up housing delivery. The 2024 White Paper on Human Settlements underpins this new direction, cementing the private sector's role as an essential delivery partner and championing diversified housing models aimed at creating integrated, spatially equitable communities.
"The task ahead is to ensure that transformation is systemic, sustainable, and embedded across the value chain. Most importantly it must be impactful in improving the quality of lives of the historically marginalised."
The minister acknowledged meaningful strides in opening doors for women, youth and emerging contractors within the construction industry, but stressed that deeper structural change remains essential. She called for programme-based implementation, outcome-driven planning and tighter coordination between different spheres of government.
Turning to technological advances, Simelane highlighted the recent Innovative Building Technologies Summit held at NASREC in February as a watershed moment for the sector. She confirmed that these technologies have moved beyond the experimental phase and now represent a strategic imperative for producing durable homes at the speed, scale and standard required. Key results from that gathering included regulatory alignment across institutions, ring-fenced funding commitments and the incorporation of innovative building methods into climate-resilient housing programmes. A multi-stakeholder implementation forum, a dedicated programme management office within her department and structured monitoring systems have all been put in place to convert pledges into tangible outcomes.
Simelane emphasised that unlocking large-scale delivery hinges on a responsive financing ecosystem — one that ensures innovative building technology housing qualifies for both financing and insurance while strengthening ties with development finance institutions and private investors.
"We must move collectively from dialogue to delivery, from planning to implementation."
In her closing remarks, the minister declared that South Africa finds itself at a decisive juncture where policy reform, technological innovation, private sector capability and local government leadership must converge to provide lasting solutions. She maintained that success would not only tackle the housing backlog but also stimulate economic growth, generate employment and foster inclusive, sustainable communities — and urged all stakeholders to act with urgency and collective resolve.
South Africa's 2.6 million unit housing backlog directly affects over 12 million people, making any shift in delivery strategy significant for households, construction firms and municipal budgets alike. Greater private sector involvement could unlock investment, create jobs in building trades and stimulate demand for local materials, particularly if innovative construction technologies reduce costs. Whether the proposed public-private partnerships translate into measurable progress will depend on sustained funding commitments and effective coordination across all levels of government.
