Budget and policy speech tabled by MEC for Human Settlements - Honourable Siphokazi Lusithi, at the Eastern Cape Provincial Legislature, on 28 March 2023
Somlomo Obekekileyo
Nkulumbuso yePhondo ehloniphekileyo
Amalungu wendlu yoWiso-Mthetho ahloniphekileyo Iinkokheli zemibutho emelweyo kwindlu yoWiso-Mthetho Iinkokheli zendlu yeeNkosi
Imibutho yasekuhlaleni, amadlelandawonye noRhulumente nemibutho esisebenzisana nayo
Iinkokheli zeMvaba ngeeMvaba Iintloko zee-Arhente ngee-Arhente
Ulutsha, oomama, ootata, abezoshishino nabo bonke abantu abakhoyo apha Umlawuli-jikelele wePhondo neeNtloko zaMasebe
Oonondaba
Zidwesha ne-Zidwangube Uluntu lweMpuma Kapa luphela
Molweni! Good afternoon! Goeie middag! Dumelang!
INTRODUCTION
Somlomo Wendlu yoWiso-Mthetho, liwonga elikhulu ukuma phambi kwalendlu ibekekileyo, kunye nabemi baseMpuma Kapa ukuba ndothule iVoti yoHlahlo-lwabiwo-mali yeSebe lokuHlaliswa nokuZinziswa koLuntu eMpuma Kapa yonyaka-mali 2023/24.
The Budget Vote of the Eastern Cape Department of Human Settlements outlines not only our collective vision which is “to bring dignity and improve the quality of household life”, but concrete plans towards the systemic establishment of the sustainable integrated human settlements in the province.
The department continues to change the landscape of the Eastern Cape through creating integrated sustainable human settlements, serving the most vulnerable of our communities in realisation of the strategic priorities of the Provincial Development Plan and the National Development Plan. Indeed, we are now effectively moving towards the end of term of the 6th administration.
I must indicate that the prevailing period is characterised by deep seated challenges of unemployment, inequality, and poverty; it then follows that the need for decent shelter and social infrastructure is on the rise. This means, we must prioritise the implementation of programmes which will yield the greatest impact towards the attainment
of vision 2030. It is therefore important that while we review the progress made in 2022/23, we put all the efforts into ensuring that we achieve the MTSF and PMTSF targets.
His Excellency, President Cyril Ramaphosa on behalf of the collective leadership, has declared “2023 a year of decisive action to advance the interests of our people”. In addition, Honourable Premier Oscar Mabuyane made an appeal to all of us as leaders “to roll up our sleeves and make 2023 truly a year of decisive action, and that we must work together more than we have ever done before to re-write the history of our province, from a history of hopelessness to a future of prosperity.”
Nomatile Gcabashe who benefited from the Dimbaza 27 Housing Project for visually impaired in the Buffalo City Metropolitan Municipality (BCMM), said when she received her title deed, “uRhulumente undenzele ikhaya nabantwana bam, besele ndincamile ngenxa yokukhubazeka kwam. Akukho mntu unofika andigrogrise andikhuphe, ngoba ndinaso isiqinisekiso, nantsi i-title deed yam.”
In the same vein, led by our Premier, I will narrate a story of good progress on the work we are doing in executing priorities of the department, which include:
i. Provision of housing opportunities prioritising the Destitute, Vulnerable Groups and Military Veterans.
ii. Systematic unblocking of historically blocked projects;
iii. Accelerated Registration and Issuance of Title Deeds to Homeowners;
iv. Increase in empowerment opportunities for SMMEs including women and youth;
v. Upgrading of informal settlements and provision of social and economic amenities;
vi. Progressive adoption of Innovative and Sustainable Building Technologies (ISBT).
vii. Enhance Partnerships and Collaborations with social partners and
viii. The improvement of the Functionality of the department for improved service delivery outcomes.
Before, I expand on how government is performing in delivering in these priorities, allow me to first provide a brief picture of the human settlements landscape and policy considerations within the sector. And subsequently, I will share key service delivery highlights of the 2022/23 financial year, and lastly, departmental commitments for 2023/24 financial year.
We are tabling the vote for the Department of Human Settlements today, exactly 28 years since the passing of the first democratically appointed Minister of Housing, Isithwalandwe-Seaparankoe, Honourable Joe Slovo, an astute intellect, and Marxist-Leninist scholar, who passed away on 6 January 1995. Minister Joe Slovo shall always be remembered as one of the key architects of the housing policies anchored on the comprehension of the needs and aspirations of our people.
He understood that the provision of housing to the people was interconnected to the restoration of the dignity of the people, which was eroded through decades of repressive and racial laws imposed by the illegitimate apartheid government. He clearly articulated that “Housing is a physical requirement, but it is also much more a spiritual need which goes to the root of a dignified and tolerable life. It is at the core of a better life for all South Africans.”
Honourable Speaker, since 1994, the ANC-led government has delivered subsidised housing to more than 3 million poor households, and this has been one of the most notable quantitative successes of South Africa’s developmental goals. However, despite this substantial investment, the demand for housing closer to economic opportunities continues to be the main challenge facing the country. The latest assessment done in 2017 indicates that, just over 80,1% of South African households live in formal dwellings, and the lowest proportion across provinces was our province, Eastern Cape at 70,4%.
These trends show us that, while the province has to attend to issues of historical underdevelopment in rural areas, we have to have the necessary foresight to plan for rapid urbanisation and for the demand for urban settlements. Historically, the government’s perspective on housing emerged from a human rights framework, the constitutional right to shelter, inspired by the Freedom Charter. Furthermore, in the last two decades, the housing programme has undergone policy revisions, which have seen a transition from the building of houses to creating sustainable communities and sustainable urban forms. This illustrates that the human settlements programme is not just housing or shelter but human settlement, it must be integrated to its socio-economic context.
These policy shifts have primarily been informed by a recognition that housing can play a meaningful role in improving the broader socio-economic participation of the people. Indeed, the shift from houses to human settlements, principally acknowledges that settlements should serve a broader purpose to foster integration of people into an inclusive economy and society rather than mainly being about the construction of more housing units.
There is acknowledgment that the sustainability and cohesiveness of human settlements rely on good infrastructure such as public transport, water, energy sources, public spaces and accessibility of essential community services such as schools, shops, healthcare, and facilities for families and children. In the core, the department should strive for the establishment of viable, socially and economically integrated communities, located in areas allowing convenient access to economic opportunities as well as health, educational and other social amenities.
This situation therefore necessitates that government subsidised units and future spatial planning must contribute towards efforts to restructuring our cities’ urban spatial form. The prevailing narrative in this regard is that despite the great efforts by the government to increase the housing stock, the country’s urban form is still characterised by sprawl, segregation and fragmentation. The provision of housing by the state has not meaningfully altered the cities’ urban DNA, which are still characterised by poor integration, low-density, mono-functionality, poor connectivity and predominantly low-income residential areas on the periphery of cities with limited economic opportunities.
In addressing this situation, this means we need to do more as government and as communities in ensuring that land-use is informed by local, and district integrated spatial plans. Here, I wish to reiterate the concern by our Premier about the emerging land use practices where human settlement are mushrooming in the peri-urban areas which restrict the development and expansion of our towns and cities. This area will need close collaboration between government, traditional leaders, and communities.
The department is working closely with government institutions to align programmes such as small-town revitalisation, office parks, and surplus land and property holdings available, to permit infill development and urban renewal. It is our commitment to take forward these ideals with a conceptual clarity on the delivery of sustainable integrated human settlements. The establishment of sustainable integrated human settlements that responds to the challenges confronting the people now, needs to strategically cater for the low-income and middle-income earners through social houses. The Social Housing Programme plays a critical role in changing not only the landscape of our communities but in community integration.
Our programme is anchored on the Freedom Charter, which declared that “there shall be housing, security and comfort”, the Provincial Development Plan which states amongst others that “Substantive community participation in settlement planning and design is an important feature of development”; the National Development Plan and the UN Habitat which amongst others emphasises that we must “Leave no one or place behind”.
REVIEW AND HIGHLIGHTS OF 2022/23
I would like to take this opportunity Honourable Members to report progress against the priorities pronounced to this august house in March 2022.
Upscaling of Housing Opportunities with Special Focus and Prioritization of Destitute, Vulnerable Groups and Military Veterans
The department is prioritising the provision of decent and secure shelter to the destitute and other vulnerable groups. This is of great importance in the persistent fight against Gender Based Violence and Femicide which has highlighted the vulnerability of child headed households, women, and the elderly. In the current financial year, the department has developed 3 400 serviced sites with 3 266 rural and 134 urban. Furthermore, the Department has 4585 completions to shelter destitute households with over 7000 housing units in various stages to reach the target of the current year as well as the MTSF targets. This will ensure that the previously disadvantaged group has shelter and benefit from the housing opportunities. This intervention is currently benefitting approximately 5 338 households comprising of the elderly, women, people living with disabilities, youth and military veterans.
We are strengthening our efforts to accelerate the provision of housing for Military Veterans. In the Duncan Village Gompo 30 Military Veterans Project, the municipality is in the process of resolving social facilitation issues that have delayed site establishment, the contractor is awaiting the finalisation of the process to commence work in the 2023/24 financial year.
In the Nelson Mandela Bay Metropolitan Municipality, the Chatty 491 Military Veterans Project, there are 150 completed units. The Department experienced some challenges in the project in 2022/23 and as part of resolving those, 100 of the remaining sites will be set aside for military veterans and the remainder will be allocated to children and widows of military veterans and other destitute households.
Honourable Speaker, in this financial year, we have rectified 531 units through our Remedial Works Programme as follows: BCMM 45; Sarah Baartman 34; Nelson Mandela 133, Chris Hani 49 and OR Tambo 270. We shall continue to gradually reduce defective houses in line with the 10% HSDG grant allocation.
In the current financial year, 73 beneficiaries were assisted through the Individual Housing Subsidy Programme. We continue to engage municipalities and create awareness for the public to access this subsidy programme.
The climate change is a reality and a global phenomenon posing an eminent threat to the lives of our people living in rural areas and informal settlements. This requires a sustainable integrated approach in dealing with disasters which is more targeted. In April 2022, KwaZulu Natal, North-West and the Eastern Cape were hit by excessive floods never seen before, damaging infrastructure and leaving scores of our people homeless and some with partially damaged houses, resulting in the President of the Republic of South Africa, His Excellency Cyril Ramaphosa, declaring the State of National Disaster.
The Alfred Nzo and OR Tambo regions were the most affected leaving 1259 households homeless. In bringing relief to the affected households, the department has provided Temporary Shelters to more than 1000 families in the two regions.
In February 2023, our province once again experienced heavy rains where more than 3000 households were left destitute. I am pleased to inform the people of Eastern Cape that the 227 households in Silvertown Informal Settlement eKomani have been relocated away from the flood line and provided with Temporal Shelters with the view of providing a permanent solution once all planning activities have been concluded. The use of Innovative and Sustainable Building Technologies, which is more responsive to adverse weather conditions, will assist in providing a permanent solution speedily.
Honourable Speaker, we welcome the policy amendments to the Finance Linked Individual Subsidy Programme (FLISP) that has now been delinked and renamed the “FIRST-HOME-FINANCE” Scheme. This means that beneficiaries do not need a bond to benefit but can use other means of sourcing funding such as:
■ Housing loans granted or guaranteed by a pension and provident fund.
■ Unsecured housing loans from any registered lender.
■ Housing loans granted or guaranteed by cooperative- or community-based savings scheme or stokvels
■ Housing loans supported by employer-based schemes.
Through this programme, the Department has assisted, 251 qualifying beneficiaries in purchasing their first homes. This programme is aimed at assisting first time home buyers earning between R3501 and R22 000 per month. It is hoped that the changes will attract a greater constituency of the middle class and a wider spread across the province.
This year, as we continue to navigate through challenges faced in rolling out social housing due to funding constraints, the Steve Biko Precinct by Qhama Social Housing Institution has just resumed construction in December 2022 after mobilising additional funding. The Department is continuously engaging the Social Housing
Regulatory Authority (SHRA), who is the implementing agent for social housing, to resuscitate the terminated Oceanview Social Housing project in BCMM and increase the footprint of social housing in the province.
Systematic Unblocking of Historically Blocked Projects
Honourable Speaker, the Department has unblocked 34 projects against 87 blocked projects in various parts of the province which will be implemented over multi-years in Alfred Nzo, Amathole, Chris Hani, Buffalo City Metropolitan Municipality, Nelson Mandela Bay Municipality and Sarah Baartman Regions. The Department is currently busy with planning processes to prepare the state of readiness for project implementation. Out of the 34 unblocked projects, the Department anticipates yielding 524 Units in the next financial year.
In Alice Mavuso Project, in the Raymond Mhlaba Local Municipality the project has been unblocked through the decisive intervention of the department by providing bulk infrastructure. We are pleased to report that now the contractor is on site constructing 300 units. The Maladini Project (104 housing units) in Mhlontlo Local Municipality, O.R Tambo District Municipality is close to completion as a result of unblocking blocked projects. This is the story of good progress and a huge milestone for the Department.
Accelerated Registration and Issuance of Title Deeds to Homeowners
Honourable Members, the issuing of title deeds is one of the Department’s priorities that it implements concurrently with municipalities. The appointment of the Panel of 28 Conveyancers in various local municipalities has made it possible to resolve some of the administrative blockages and gradual progress will be made by the end of the MTSF period.
In the period under review, we have managed to register 2 677 title deeds in the following categories: Pre-1994 (70), Post-1994 (2 116), Post-2014 (45) and new title deeds (446).
Increase in Empowerment Opportunities for SMMEs including Women and Youth
Honourable Speaker, we are encouraged by the contribution we are making in capacitating designated groups especially our youth with technical skills and experience through various interventions. This not only contributes to the fight against unemployment, but it also contributes to the growth of our economy.
In this period, 84 SMMEs have been trained through the National Home Builders Registration Council (NHBRC) on Sustainable Business Enterprises, 20 were provided with work opportunities through 30% subcontracting, and 21 youth are currently enrolled for Artisan Development Programme through apprenticeship and learnership.
Furthermore, the department has managed to allocate 87% of the HSDG construction budget to designated groups in particular youth and women contractors with a contractual value of R539 656 251.48. The designated groups have benefited as follows: SMME’s Black People with a contractual value of R508 499 251; Women SMME with a value of R84 615 608.36 and Youth SMME with a contractual value of R35 580 237.
In 2022/23, 5 847 job opportunities have been created through EPWP compliant projects as follows: 1 791 men, 536 women, 1 574 female youth,1 944 male youth, and 2 persons living with disability. We have, through our Youth Brigade Programme, created 186 empowerment opportunities for our young people with 82 males and 104 females in Amathole and Buffalo City Metro Municipalities.
The department has enrolled 112 learners who are enrolled with Technical and Vocational Education and Training (TVET) colleges in the province; 45 are male and 67 are female, placed in Alfred Nzo, Amathole, Chris Hani and Sarah Baartman regions as apprentices. Our internship programme has contracted 46 youth (23 males and 23 females) for a period of 24 months, in collaboration with the Office of the Premier and Construction Education and Training Authority (CETA). There are 32 TVET learners who are doing their experiential learning at the department for a period of 18 months.
The Department continues with its efforts to capacitate municipalities through institutional and technical support to effectively play their roles in the human settlements’ delivery cycle. The Department has capacitated 225 councillors, traditional leaders and municipal officials on human settlements through Short Learning Programmes.
Upgrading of Informal Settlements and Provision of Social and Economic Amenities
The climate change has drastically increased the levels of vulnerability of informal settlements dwellers. While Eastern Cape records the lower levels of informal dwellings, these numbers are highly concentrated in the metros (General Household Survey 2021). However, the growing number of informal settlements in the smaller towns shows that they cannot be left unattended.
Honourable Members, 115 informal settlements are currently being upgraded and all are between Phase 2 and 3 with provision of the much-needed basic interim services. Leading in progress are Raymond Mhlaba Local Municipality in the Amathole Region, Ndlambe and Kouga Local Municipalities in Sarah Baartman Region in which 4 927 households are now receiving the basic services. The last stage of the upgrading of informal settlements is Phase 3 which includes, permanent infrastructure for the water supply and reticulation across each settlement, the drilling of boreholes, installation of water tanks, paving of the roads and permanent sanitation
infrastructure. All the 115 Informal settlements are now fully contracted with Professional Teams, Contractors and SMME’s.
The acquisition of 10 land parcels, where the informal settlements are located, has been processed as part of the Land Acquisition Plan to de-densify and relocate some of the households residing in inhabitable conditions in Sundays River Valley, Ndlambe and Kouga local municipalities.
The following progress is reported on social and economic amenities:
■ Lwandlol’ubomvu MPCC in Ntabankulu Local Municipality, is nearing completion which will assist the Matshona Community to access government services and sports and recreation facilities in the area. The anticipated completion is 31 March 2023.
■ The Burgersdorp Sports Field in Walter Sisulu Local Municipality anticipated completion is on 31 March 2023.
■ Tsomo MPCC in Intsika Yethu Local Municipality faced several implementation challenges is now back in construction and will be completed in 2023/24. This MPCC experienced setback due to extensive damage caused by a disaster that befell the project in December 2022. This MPCC will serve the communities of the Amabhele Traditional Council.
Progressive adoption of Innovative and Sustainable Building Technologies (ISBT).
Honourable members, this Financial Year, the Department has managed to construct 77 units using Innovative and Sustainable Building Technologies (ISBT) in 6 ISBT projects in KSD, Port St Johns, Buffalo City and Ndlambe municipalities. One significant technology involves a rural sanitation technology that enables flushing in rural areas that have water and reticulation challenges which has been implemented in the Mthatha-Qweqwe project.
Partnerships and Collaborations with external stakeholders
Honourable Speaker, encouraged by the District Development Model (DDM), the department continues to strengthen intergovernmental relations as a tool for integration and improved service delivery. The MEC-MMC Implementation Forum has been established as a platform for a coordinated political-administrative interface, between the two spheres (Provincial and Local Government), to inform and enable a shared understanding on critical matters pertaining to the transformation of the sector and the delivery of integrated Human Settlements in the Eastern Cape.
The Department is working closely with the Department of Fisheries, Forestry and Environment (DFFE), Department of Correctional Services (DCS) and Department of Social Development (DSD) in ensuring that we hand over homes and human settlements, not just houses. As a department, we appreciate the support we continue to get from the private sector and non-governmental sector. We know that, together we can transform our communities.
Strengthening Public Education and Awareness on Various Instruments
Honourable Members, the Rental Housing Tribunal is assisting the people of the province who are in the rental market through dispute resolution between landlords and tenants. The programme runs an awareness programme for municipalities and the public to understand its responsibilities and how to access its services.
Indeed, there is a story of good progress in protecting the rights of our people through this intervention of government which provides our communities with access to free legal services. We acknowledge the great effort put in by the members of the Rental Housing Tribunal who are present here today. In the year under review, the Department has resolved 253 rental disputes cases.
Honourable Speaker, the Social Facilitation Programme continues to support human settlements development through customer care, consumer education and social facilitation. The current state of social unrest necessitates that project are not stalled as a result of beneficiary disputes or dissatisfaction. The Social Facilitation Programme has been able to reach 6 512 housing beneficiaries through consumer education and supported 16 Project Steering Committees in this regard. Primary to the focus of consumer education is education on ownership and the pre-emptive clause to sales of houses.
This the reflection of the performance of the Department in the current financial year, it represents the highlights and areas of improvement. We are strengthening our institutional capacity at various levels to ensure that we increase our pipeline in all regions and improve service delivery to achieve our Medium-Term Strategic Framework targets.
REVIEW OF DEPARTMENTAL EXPENDITURE
Analysis of Departmental Expenditure as at the 1 April 2022 to 24 March 2023
ITEM - BUDGET ALLOCATION R’000 - TOTAL EXPENDITURE R’000 - % EXPENDITURE
Overall expenditure on the Vote - 2 595 722 - 2 448 173 - 94%
Conditional Grant expenditure - 2 138 013 - 2 005 247 - 94%
Equitable Share expenditure - 457 709 - 442 926 - 97%
DEPARTMENTAL OUTLOOK FOR 2023/24
Honourable Members, we are 24 Months away from the end of the PMTSF. We are conscious of the set targets we committed to achieve both in the PMTSF and the PDP Vision 2030. Significant strides have been made particularly on Low-Cost Housing and serviced sites. However, we are mindful of the key delivery areas that need urgent action in the remaining period and we remain committed to drawing every resource available working with our partners to realise the set targets.
In 2023/24 financial year, we will continue to implement the broad Policy Priorities of the sector as set in the Sixth Term of Administration:
Provision of Housing Opportunities Prioritising the Destitute, Vulnerable Groups and Military Veterans
Honourable Members, housing delivery to the most destitute and vulnerable beneficiaries especially people living with disabilities, the elderly, child-headed families, and military veterans remain a priority. It must be noted that the human settlements mandate requires that we go beyond low-cost housing and create social, spatial and economic integration through sustainable settlements with due consideration of mixed housing typologies. This will be done by strengthening relationships with stakeholders and developers to make a lasting impact on the landscape of the province.
In the financial year 2023/24, our targets, as articulated in our Human Settlements Development Grant Business Plan (HSDG), include the delivery of 7 638 Low-Cost Housing units, 320 units through the “FIRST-HOME- FINANCE” Scheme, 38 Individual Subsidies and 5 350 serviced sites in all our regions.
The department will utilise 10% of its annual HSDG budget allocation to rectify, under the Remedial Works Programme 832 units in the following regions: BCMM; Chris Hani; NMBM; OR Tambo and in Sarah Baartman. Honourable Members, the last MinMEC Forum considered changes to the quantum that would accommodate the installation of rooftop solar panels, burglar proofs for vulnerable households, and water and sanitation
systems that respond to water shortages. This will ensure that we respond to the call of the President to promote alternative power solutions and respond to climate change to protect the most vulnerable in our communities.
On catalytic projects, the Department will continue supporting the development of the six (6) catalytic projects in our two (2) Metros. In Nelson Mandela Bay, the municipality is doing the preplanning activities in Algoa Park, Zanemvula, Baywest N2 Nodal and KwaNobuhle. The Jagvlagte project is expected to commence with the construction of 327 housing units in 2023/24. The Duncan Village Redevelopment Initiative (DVRI) in Buffalo City Metro will construct 165 housing units in the Reeston Project.
We have engaged vigorously with the Department of Military Veterans with the view of attending to all bottlenecks and accelerating delivery of houses to Military Veterans. I am pleased to announce that we have developed a Project Implementation Plan for the Military Veterans with a target of completing all houses required in the province by end of the 2025/26 financial year. In the 2023/24 financial year, 230 units for military veterans will be delivered.
Honourable Speaker, the department will continue working with Social Housing Regulatory Authority (SHRA) to ensure that there is an increased rental stock pipeline within areas of high demand in the province.
Unblocking Blocked Projects
Honourable Members, 53 blocked projects will be unblocked throughout the province. These projects were blocked due to the challenges of bulk infrastructure and the termination of poor-performing contractors who did not have enough capacity to deal with difficult terrain/topography, scatteredness of sites and unavailability of proper access roads in rural villages. We are leveraging on partnerships with implementing agents to assess the work that was left at various stages of construction to accelerate unblocking of blocked projects.
We continue to engage municipalities that are challenged with bulk infrastructure to prioritise bulk infrastructure for human settlements development. The Department will be tapping into the Human Settlements Development Grant (HSDG) and Informal Settlements Upgrading Partnership Grant (ISUPG) to unlock bulk infrastructure challenges in Joe Gqabi and Sarah Baartman. This is decisive action to hasten service to the people as called upon by the President.
Issuance of Title Deeds to Homeowners
Honourable Members, we acknowledge the slow progress in the issuance of title deeds; we are putting measures in place to improve the turnaround time for registrations. In the 2023/24 financial year, the Department will register 7 747 title deeds under the following categories: Pre-1994 (500), Post-1994 (4 723), Post-2014 (1 351), and New (1 173) title deeds. We are embarking on an advocacy campaign to accelerate the resolution of challenges and delivery of title deeds through the programme of “Restoring people’s dignity through homeownership – one title deed one beneficiary.” This will entail broad community mobilisation, engagement with municipalities, and promotion on community radio stations. We will be working closely with municipalities to fast-track the delivery of the title deeds in all categories.
Upgrading of Informal Settlements and Provision of Social and Economic Amenities
Honourable Speaker, a total of 160 informal Settlements will be upgraded in various municipalities utilising the Informal Settlement Upgrading Partnership Grant (ISUPG). It is important to note that the department is revising its Upgrading of Informal Settlements Strategy to assist in unblocking the bulk infrastructure challenges faced by the department in various regions where the informal settlements are located which will also assist other housing developments initiatives.
In 2023/24, the department will continue with construction of 4 social and economic amenities. Tsomo MPCC in Intsika Yethu Local Municipality, Mnandi MPCC in Blue Crane Route Local Municipality, Nkantolo MPCC and Dr Beyers Naude Local Municipality MPCC. Furthermore, the planning for Qingqolo MPCC in King Sabata Dalindyebo will commence in 2023/24.
Empowerment of Designated Groups, Skills Development and Job Creation
Honourable Speaker, the Department commits to empower 80 SMMEs contractors through training. The Department will ensure that 40% of Human Settlements Development Grant and Upgrading Informal Settlements Partnership Grant budget is allocated to designated groups in particular, youth and women.
Honourable Members, 200 opportunities will be prioritized through the Youth Brigade Programme and we will continue to capacitate 21 youths through the Artisan Development Programme. 22 Technical and Vocational Education and Training Learners will be recruited through collaboration with the Office of the Premier and Construction Education and Training Authority (CETA). 24 graduates of the human settlements qualification have been placed in various municipalities across the province to support municipalities in human settlements planning, social facilitation and human settlements systems.
The Department will create 7500 job opportunities through the Expanded Public Works Programme.
Progressive adoption of Innovative and Sustainable Building Technologies (ISBT)
Honourable Members, Innovative and Sustainable Building Technology (ISBT) remains an alternative to brick and mortar while augmenting service delivery and restoring human dignity through green, resilient and inclusive human settlements. The Department will progressively adopt the utilization of ISBT on sanitation (Ventilated Improved Pit-Latrine), walling systems and water reticulation.
We will adhere to the national standard of allocating 2% of the total Human Settlement Development Grant in support of 8 ISBT projects for 2023/24. ISBT Roadshows will be rolled out to create awareness on available Innovative and Sustainable Building technologies and to facilitate social acceptance.
Priority Human Settlements Development Areas (PHSDAs)
Honourable Speaker and Members, when the Minister of Human Settlements declared the Priority Development Areas, it was with the aim of advancing spatial transformation, overcoming the apartheid spatial patterns, using human settlements to revitalise towns and cities; and creating economically sustainable communities. 12
Prioritised Development Areas (PDA’s) were gazetted in the Province in the following areas: Buffalo City Metropolitan Municipality (3), Nelson Mandela Bay Municipality (3), OR Tambo District Municipality (3) Chris Hani District Municipality (1), Amathole District Municipality (1) and Sarah Baartman District Municipality (1). Following the pilot of the programme in Port St Johns, the Precinct Development Plan was finalised and is awaiting council approval.
In 2023/24, the development of the Precinct Development Plans of the 11 PDA’s will continue with the main objective of facilitating long-term planning and mobilising investment from government, State Owned Enterprises and the Private Sector.
Partnerships and Collaborations towards transforming the Human Settlements Sector
Honourable Speaker, the mandate of sustainable integrated human settlements requires a shift both in policy and in action. It requires that the department and its stakeholders move in one understanding of the concept in the spirit envisaged by the District Development Model (DDM) of intergovernmental development planning. These should include the building of new cities, District one-stop shop centres; small town revitalisation; relocation of government office parks and responding to housing needs of middle-income earners. The
Department will continue to use all available Intergovernmental Relations (IGR) platforms to advocate for this integration as envisaged by the DDM.
The Honourable Premier has given directive to the Department, the Department of Rural Development and Agrarian Reform and Department of Social Development to collaborate through integration of services in human settlements projects. This will facilitate bringing a basket of government services to communities to realise the goals of provision of shelter, food security and poverty alleviation. We will continue engaging all our stakeholders to partner with the department in this regard.
One of the key challenges facing our developers and contractors is access to funding and mechanisms to ensure the sustainability of human Settlement delivery. The department will engage government institutions mandated to support SMMEs and the private sector to ensure that we assist our contractors to fast-track the implementation and completion of our projects. Currently, the department is partnering with Construction Education and Training Authority (CETA) and National Housing Registration Council (NHBRC) to provide technical and financial support to SMMES. The department will continue to strengthen partnership with private and public development finance institutions, such as National Housing Finance Corporation (NHFC); Eastern Cape Development Corporation (ECDC) and Small Enterprise Finance Agency (SEFA) with an aim of development, empowerment, and growth of SMMEs within the sector.
The human settlements development process exposes the need for transformation within the materials supply sector. We will be considering the best approach to unlock the transformation of the material supply value chain through a benchmarking exercise and developing a clear achievable strategy.
Strengthening Consumer Education and Community Interventions
Honourable Members, the department is committed to ensuring that our communities are aware of departmental programmes and able to access departmental services. This year we will continue with public and consumer education through media communications and community engagements. In 2023/24, we will reach 4 326 beneficiaries through public and consumer education.
The Rental Housing Tribunal will continue to respond to rental disputes lodged by tenants and landlords. In 2023/24 financial year, the department plans to resolve 200 rental dispute cases.
PROVINCIAL SERVICE DELIVERY OUTLOOK 2023/24
Honourable Speaker and Honourable Members, the Department, utilising the Human Settlements Development Grant (HSDG) and Informal Settlement Upgrade Partnership Grant (ISUPG), is committed to provide housing opportunities to our communities.
The tables below reflect the Provincial Service Delivery Outlook per region for 2023/24.
REGIONAL OUTLOOK FOR 2023/24 UNITS AND SERVICES
REGION - SITES - UNITS - NUMBER OF PROJECTS - BUDGET ALLOCATION
ALFRED NZO - 1 004 - 999 - 64 - R 165 001 950
AMATHOLE - 944 - 811 - 46 - R 119 229 209
BUFFALO CITY METRO - 431 - 1241 - 70 - R209 106 950
CHRIS HANI - 838 - 1186 - 104 - R272 362 400
JOE GQABI - 500 - 429 - 33 - R 108 596 050
NELSON MANDELA METRO - 0 - 1411 - 79 - R 215 034 325
O.R. TAMBO - 1073 - 1238 - 58 - R 260 577 817
SARAH BAARTMAN - 560 - 323 - 40 - R 98 025 600
TOTAL - 5350 - 7638 - 498 - R 1 447 934 301
UPGRADING OF INFORMAL SETTLEMENTS PROGRAMME BUDGET ALLOCATION 2023/24
REGION - NO. OF UPGRADING OF INFORMAL SETTLEMENTS PROGRAMME PER REGION - BUDGET ALLOCATION 2023/24
ALFRED NZO - 4 - R22 220 567
AMATHOLE - 26 - R72 360 063
CHRIS HANI - 19 - R80 329 277
JOE GQABI - 10 - R48 323 031
O R TAMBO - 20 - R100 754 862
SARAH BAARTMAN - 91 - R130 494 939
OPSCAP - Operations and Consultation fees - R23 860 257
TOTAL - 160 - R478 343 000
APPRIOPRIATED BUDGET 2023/24
The appropriated budget for the department of Human Settlements for 2023/24 as outlined below:
BUDGET CATEGORY - TOTAL ALLOCATION (R’000)- PERCENTAGE OF OVERALL BUDGET
HSDG - 1 608 515 - 63.45%
UISP - 478 343 - 18.86%
Equitable share (provincial) - 445 889 - 17.59%
EPWP - 2 455 - 0.10%
TOTAL - 2 535 202 - 100%
PROGRAMME-BY-PROGRAMME BUDGET ALLOCATION FOR 2023/24:
Honourable Members, the budget allocation Programme-by-Programme is hereby presented:
Programme 1: Administration is allocated R177,875 million (Overall percentage 7.02%)
Programme 2: Human Settlements Delivery Planning and Performance is allocated R21,498 million
(Overall percentage 0.85%)
Programme 3: Housing Development is allocated R 2,313,224 billion (Overall percentage 91,24%)
Programme 4: Human Settlements Property and Asset Management is allocated a total budget of R22,605 million (Overall percentage 0.89%)
The departmental outlook for 2023/24 is summarised below:
KEY DELIVERY OUTPUTS ANNUAL TARGET 2023/24
Low-Cost Housing Units 7 638
Individual Housing Subsidies 38
Finance Linked Individual Subsidies Programme (FLISP) 320
Remedial Works Programme (Rectification) 832
Serviced Sites 6 251
Unblocking of Blocked Projects 53
Social and Economic Amenities 2
Title Deeds 7 747
Pre-1994 Title Deeds 500
Post-1994 Title Deeds 4 723
Post-2014 Title Deeds 1 351
New Title Deeds 1 173
Informal Settlements Upgrading 160
Empowerment Opportunities for SMMEs 80
Youth Empowerment Opportunities through Youth Brigade Programme 200
Youth empowerment Opportunities through Artisan Development Programme 21
Job Opportunities Created through EPWP 7500
Innovative Sustainable Building Technologies Supported 8
DEPARTMENTAL FUNCTIONALITY
Honourable Members, we are currently in the process of conducting the Organisational Functionality Assessment (OFA) which will assist in improving the functionality and capacity of the Department to deliver its services. This will determine if all departmental enablers and support services are supporting our core mandate of delivering human settlements to the communities of the Eastern Cape. The implementation of the outcomes of the Organisational Functionality Assessment will have a positive impact on the department to deliver on the mandate and can therefore assist to eliminate those factors that contribute to uneven performance.
It gives me pleasure to announce that the department is on a positive trajectory as interventions to turn around departmental performance were processed and are yielding spinoffs, some of which will be seen in the coming financial year. Capacity at supply chain management has been reinforced especially in speeding up evaluation processes. This will enable the department to yield the desired number of units and rebuild a pipeline of projects for future implementation.
Our strategic committees (Risk and Audit Committees) continue to play the oversight role on fraud and corruption to encourage a culture of zero tolerance at all levels of the institution including our employees and suppliers.
Fellow Members, the department has filled most of the critical posts with recruitment underway in those that are remaining, this is prioritised as human resources are the bedrock of any institution. There are 46 posts that were advertised, 42 appointments were concluded in the period under review at an average turnaround time of 135 days.
Mechanisms have been put in place to strengthen ICT governance resulting in an improved ICT Audit and progress in the digitisation of ICT processes.
As a department, we are committed to following our resources by holding our contractors accountable, thereby improving contractor performance and speeding up service delivery. Furthermore, we will continue strengthening our relationship with municipalities as a key stakeholder in human settlements delivery.
CONCLUSION
As I conclude Honourable Members, I wish to call upon all of us to play our part as individual South Africans, business, civil society, students, academics and citizens. Let us embrace the spirit of citizen activism in line with the injunction of the New Consensus, to march towards equality and prosperity for all, where no one is left behind.
Allow me to appreciate the Head of Department, Executive Management, Senior Management and the entire staff complement of the Department of Human Settlements for the remarkable support and dedication to the cause of providing care and support to the poor and vulnerable communities.
I would also like to thank the Portfolio Committee, Audit Committee, Risk Committee and our partners for their constructive oversight role to keep the Department of Human Settlements accountable and on track in realising its mandate.
Honourable Members, I now table the Budget and Policy Speech, the Annual Performance Plan and the Annual Operational Plan of the Eastern Cape Department of Human Settlements for the 2023/24 financial year.
I thank you.
