Midrand:Stronger public-private partnerships and blended finance are essential to tackling South Africa’s infrastructure financing shortfall, according to Human Settlements Minister Thembi Simelane. She made these remarks during the Dialogue on Municipal Infrastructure Sustainable Inclusive Communities, held in collaboration with the University of South Africa’s Graduate School of Business Leadership and the Department of Human Settlements.
According to South African Government News Agency, the dialogue, themed “Building Blocks of Democracy The Human Settlements Journey towards Inclusive Integrated Living,” aimed to explore pathways for housing delivery and the integration of municipal infrastructure to support resilient communities. Simelane highlighted the estimated R4 trillion shortfall in infrastructure financing, emphasizing the need for strategic partnerships with commercial banks, development finance institutions, and the private sector to amplify the impact of public resources.
Simelane stressed the importance of integrated planning and infrastructure provision for sustainable housing delivery. She warned that housing projects lacking adequate infrastructure risk failure and emphasized the need for settlements to be located near economic opportunities and transport facilities to reduce spatial inequality and living costs.
The Minister also emphasized the alignment of provincial housing plans with municipal development frameworks and infrastructure budgets before construction. She advocated for credible implementation pathways, including land acquisition and planning approvals, to ensure successful housing projects.
Highlighting the Department of Human Settlements’ target of 25,186 serviced sites by the 2026/27 financial year, Simelane pointed out the necessity of land readiness and functioning municipal systems for expanding housing opportunities. She also emphasized the importance of municipal capacity, identifying shortages of skilled professionals and weak procurement processes as challenges to progress.
Simelane called for technical support to strengthen municipalities and stressed the need for accountability in infrastructure functioning and housing occupancy. She warned against deferring maintenance, which leads to service interruptions and costly repairs, and highlighted the National Treasury’s Metro Trading Services Reform as a means to enhance municipal services, supporting both new and existing communities.