SPEECH BY LN SISULU MINISTER OF HOUSING AT THE HOUSING SUMMIT OF THE PROVINCIAL DEPARTMENT OF HOUSING IN GAUTENG

14 July 2005
Emperor’s Palace
Johannesburg

Chairperson
MEC for Housing Nomvula Mokonyane
Members of the Provincial Legislature
Your Worship the Executive Mayor of Ekurhuleni
Councilors
Heads of Department
Senior Officials of government
Invited guests
Ladies and Gentlemen:

Comparatively, we are in a rich province. Also, we are in a province that is projected to have the 12th largest city in the world by 2015, as a result of migration. Paradoxically, Gauteng is known to be the smallest province geographically. It had a population of 8.8 million in 2001.

Statistics SA’s Mid-year Population Estimates of 2004, estimates that presently the province is home to 19.0 percent of the countries population. According to a 2004 report done for the province by the University of Cape Town titled Internal Migration to the Gauteng Province one-third of Gauteng’s population is born outside the province whilst a further 5 percent is born outside the country altogether.
Analyzing Census 2001 the report indicates that the province had a net increase in the number of immigrants around 430 000 between 1996-2001, a phenomenon that contributed to it having the highest population growth rate in the country. [In this scenario I would like us to also consider the facts that a large number of ‘in-migrants’ (constituting approximately half of Gauteng’s population) are with post-matric qualifications but are less educated than people born in Gauteng. Also they are mostly employed in lower-skilled occupations and economic sectors.]

It is thus no wonder to me that out of the 1 176 informal settlements (according to Census 2001) we have as a country the province’s own recent calculation indicates that Gauteng shares a total of 392 of these.

Against this background you will understand where we are coming from as government on the issue of informal settlements. You will understand not only the urgency that is presented on Gauteng in particular by the challenge of housing here, but, very significantly how the province sought to respond to this immense challenge to partner with it. Through commitment by the Premier and the MEC Gauteng has joined us as national government in our efforts to want to eradicate all informal settlements including slums by 2014. Towards this direction they have vowed to upgrade all hostels and build family units by 2008.

By March 2006 they will have issued 20 000 title deeds and have plans afoot to extend infrastructure such as schools, clinics, recreational facilities, taxi ranks and economic facilities. Most importantly as well, Gauteng has cleaned up its waiting list and as I mentioned its process of registering all informal settlements has now been completed.
Recently, they treated us to the launch of the Brickfields Housing Project which is a mixed-income residential development, implemented through a partnership between the public and the private sector.
Allocations for tenants in respect of the first phase of the project have already taken place and the province expects the completion of the second phase by February 2006. In addition, the Alexandra Urban Renewal Project is due for finalization by 2007/8.

Some of these achievements and plans were mentioned by the MEC during the opening of the Summit and I also understand that you received a breakdown of the provincial Department’s five year strategic plan. The presentations therefore would have been made clear that despite the challenges Gauteng is on track. And in this regard I can only commend both the Premier and the MEC for the political will they collectively show.

In addition, I would like to echo the statement that the MEC would have uttered regarding what we as government envision for housing delivery in terms of the future. In particular, we envision a country where all have access to secure and decent homes which are located in proximity to places of employment including transport, places of entertainment, police and emergency services as well educational facilities. Because of this vision and the understanding we have about the structure of our society where some of the sections are afflicted by poverty we have committed ourselves to fully assist with state resources the category of people that are the poorest of the poor to the get homes. These are pensioners and the indigent who in accordance with our vision are not required to pay.
A further category of people that we will be supporting concerns those that form the lower-middle strata of society. For the middle strata we have negotiated with the banks to broaden and deepen their lending.

We are hopeful that these steps will help us end informal settlements. In addition, developments such as those in Brickfields are also geared at making rental accommodation available for people emanating outside the province but are not willing to stay within the province permanently.

Since as government we will be unable to achieve this task alone we do indeed rely depend partnerships with the private sector. If anything thus far, the Brickfields Housing Project demonstrates what we are capable of achieving collectively. I am hopeful that soon we will be able to announce the progress being achieved in various other projects that are being implemented in the same spirit.

The backlog we have is immense. We have therefore determined that the houses we build each year must show a significant increase in the scale of delivery without however compromising quality. For this purpose, and as we announced in Parliament during May, we have increased the budget allocations. Therefore, for the financial year 2007/8 Gauteng received an allocation of R1, 914,887.

In addition, the strategy to effect our vision also relies heavily on en masse communication. In this regard we are concerned about issues related to the education of the public about the opportunities present in housing including about the need to understand issues related to home-ownership as provided for by the banks.


As government we thus believe we have found the tonic to stem the tide of informal settlements. We now are ready to partner with the various sectors of society. We hope you will respond to this call from Gauteng. We trust you will see the need to do so.

The environment to come on board has been created.

I thank you.