Real Estate Investor Magazine South Africa July/August 2019 | Page 18

their cover – showcasing an aerial photograph of the side-by-
side inequality in the country. The renowned publication has
labelled SA the “most unequal country”. The image indicates
the stark economic inequality of communities that live
adjacent to one another.
A study by the World Bank indicates that South Africa is
the most unequal country in the world, both socially and
economically. “South Africa remains a dual economy with
one of the highest inequality rates in the world, with a
consumption expenditure Gini coefficient of 0.63 in 2015.
Inequality has been persistent, having increased from
0.61 in 1996. High inequality is perpetuated by a legacy of
exclusion and the nature of economic growth, which is not
pro-poor and does not generate sufficient jobs,” the study
reads.
This shocking data has yielded a movement towards
improving socio-economic standards for all South Africans
by implementing affordable/inclusionary housing. An
increase in crime rates can be attributed to the economic
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JULY/AUGUST 2019 SA Real Estate Investor Magazine
inequality present in the country, further exacerbated by
the lack of job opportunties, informal settlements and poor
quality of education. However, housing plays a pivotal role
in shapping an individuals life – adeqaute living conditions,
including water and santiation and access to electricity can
improve one’s living standard.
CASE STUDY: Brazil
According to the United Nations, Brazil implemeted their
affordable housing scheme in 2009. The national housing
policy dubbed, ‘My House, My Life Programme was
established to generate a sector in which low to middle
income members of the population could purchase
property.
Brazil is focused on ensuring each resident has suitable
housing. Earlier this year, Planet Smart City, a company
focused on creating high-quality low-cost homes,
announced their plans to launch in the Northeast of Brazil.
Named Smart City Natal, the development will be located