Statement by Minister of Human Settlements Tokyo MG Sexwale, on the sod turning occasion in Joe Slovo, Cape Town

The Human Settlements 2030 Vision is about accelerating the development of sustainable human settlements for all South Africans based on the provisions of the Constitution. It is about laying a solid legal architecture which gives legislative meaning to guide the delivery of integrated human settlements.

It is also about enhancing social justice through the de-racialisation of the residential market.

Our mission is four-pronged:

  • Firstly, the upgrading of informal settlements.
  • Secondly, the provision of grants for low-cost housing.
  • Thirdly, provision of guarantees to banks lending in the gap market.
  • Fourthly, to regulate the activities of financial institutions in respect of their lending practices.

In June 2009, the Constitutional Court - ConCourt - made a Judgment in favor of orderly evictions of the people of Joe Slovo, in order for development to take place. It pronounced on the establishment of Temporary Residential Areas (TRAs), and the type of material to be used for the purposes of constructing the TRAs.

In August 2009, I visited the entire N2 Gateway Project, including the informal settlement of Joe Slovo.

During that visit, we pointed out;

  • that all must respect the ConCourt decision
  • that it is important to act cautiously, in moving forward
  • time and space had to be found to explore less disruptive options and
  • that the parties involved needed to find each other through further engagements

At the conclusion of that visit, directed the Housing Development Agency and the province to stay the course on the project.

From that day, a process towards an inclusive solution was defined. We had to explore the possibilities of densification in Joe Slovo.

In relation to Joe Slovo, a socio-economic survey was conducted. Three studies were used to draw conclusions and recommendations from, including one conducted by the national department in 2009.

Summary of issues from the socio-economic survey

  • Densification will help create 2 886 units, compared to the 1 500 endorsed by ConCourt.
  • 70% of people in Joe Slovo earn less than R1 500.00 per month.
  • Only five households earn more than R3 500.
  • 44 housing units will be required to for the elderly and disabled. The designs of such units, will have to take the special needs of the elderly and disabled into account.
  • 57% travel by train. This mode of transport will not be available if people were relocated to Delft, as there is no such in Delft.
  • It is clear therefore that relocating to Delft would have had negative impact on the residents’living conditions, their wellbeing and chances of employment.
  • Besides the fact that the burden on education would have increased, personal transport costs would be beyond people’s abilities. An extra R33 million would have been spent on additional 500 TRAs as required by the ConCourt.

Today, marks the beginning of an important turn around in a very troubled pilot project. We can say for sure that Joe Slovo will never be the same again.

The launch of this project today, also demonstrates the interconnectedness of informal settlements upgrading programme and the provision of subsidies to themost destitute and vulnerable members ofsociety.

Outcome 8 - the creation of sustainable human settlements to improve households life - requires that we, amongst others, upgrade 400 000 households in informal settlements by 2014. Joe Slovo is one of these settlements.

The 2 886 units to be built here, will be spread out over 24 months - two financial years. This is done at a total cost of R374 million.

Densification is a viable option, not only in Joe Slovo, but in many other areas in the province and the country.

We are building functional and vibrant communities. Where we Play, is where we Pray and where we Stay, is where we Leisure. To give impetus to this drive, we are introducing, as announced by the Minister of Finance, a new grant - the Urban Settlement Development Grant (USDG)  in all our metros.

The USDG will be used to fund bulk- link infrastructure, basic water and sanitation, roads, solid waste, social infrastructure including libraries and sports facilities. The City of Cape Town is one of the metros that will receive the grant.

In three days' time, the City of Cape Town will be receiving Compliance Certificate, up to level two municipal accreditation, together with other metros.

Conclusion

The Housing Development Agency (HDA), has been consistently involved in the project and in constant contact with the Joe Slovo Task Team members. We acknowledge and appreciate the role of all parties in the Social Contract process.

The Social Contract process was driven for the better part of 2010. The time invested in the Social Contract journey was necessary. As a result of this level of patience and tolerance, a firm foundation is being laid today.

Summary of milestones/key events

1. Constitutional Court Judgment: June 2009

2. Tour of the entire N2 Gateway Project by the Minister: August 2009

3. Proposal on Joe Slovo high density: September 2009

4. The signing of the Social Compact with all stakeholders: January 2011

5. Commenced services: 24 January 2011

6. Plan to commence top structures: Mid March 2011

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