ENGINEERING
A bottom-up approach to affordable housing for South Africa ’ s people
By Chris Campbell , CEO , Consulting Engineers South Africa
The World Bank Group estimates that by 2030 , three billion people , or 40 % of the world ’ s population will need new housing units . With the rapid rise in urbanisation in cities across Africa , the need for affordable housing is not unique to South Africa .
EAMONN RYAN
Neither are the challenges we face in successfully housing our poorer citizens . Housing demand soars as the number units required reaches into the millions throughout Africa , while few local developers hold the technical and financial strength to construct large-scale housing projects .
Many African countries are turning to international firms to assist in housing development . For example , in Angola , through planning , financing , construction and post-construction operation , a Chinese multinational construction and engineering company has successfully completed a 200 000- unit housing programme .
Industry bodies such as Consulting Engineers South Africa ( CESA ) play a prominent role in ensuring the professionalism and quality of our industry – supporting our firms who are eager to collaborate with government and help provide our people with sustainable housing .
What South Africa is lacking , however , is money . Plans to roll out thousands of social housing units are ambitious , and these projects require funding . With R12 billion cut from the national housing programme in the 2020 budget , how does South Africa plan to make ends meet ? The likely answer lies in loans – since South Africa is not currently high on the list of investment destinations .
With South Africa ’ s debt to GPD ratio sitting at 62.2 % – the highest in our history – taking loans to enable government to subsidise housing is clearly unsustainable . Our economy cannot stand on loans . Added to this , it seems that despite options for government subsidy , many of our people are still unable
Chris Campbell , CEO , Consulting Engineers South Africa . to afford housing . Even at the lowest repayment costs , with subsidy , many aspirational homeowners fall into default .
So , what does this tell us ? I would say that the problem clearly is not just in affordable housing . The problem lies within the concept of affordability at its most basic , underpinned by economic activity . Ultimately , the role of government is not to achieve subsidised housing for all those in need – what I call the Top-Down Approach . The role of government would surely to be create an economic environment conducive to the creation of income and the economic empowerment of those whom government housing schemes aim to house – more aptly , the Bottom-up Approach . To put it simply , government does not need to be able to house everyone ; the government should enable everyone to house themselves .
Our attention needs to turn to a holistic approach to this housing conundrum , which is centred on true economic reform rather than symptomatic relief . I am by no means suggesting we give up on housing initiatives – we still need nearer term relief from the scourge of unhoused South Africans . However , let us not lose focus on the real heart of the matter .
It is easier said than done , of course . What do we need to do in order to improve our economy ? The list could be endless . However , as a consulting engineer with a keen interest in infrastructure and service delivery , I would suggest that getting the ball rolling on the government ’ s Strategic Infrastructure Projects would be a great place to start . Job creation stemming from infrastructure development is a proven strategy for economic reform . I would also suggest that for housing developments currently in the pipeline , considerable attention should be given to their location , so as to be close to economic hubs and areas where employment opportunities exist . All too often , housing initiatives are assigned to remote areas where chances of employment are minimal . Furthermore , our lack of safe , affordable , and reliable public transport makes it even more imperative that such affordable housing be developed in close proximity to places of possible employment . This is a basic requirement if we are to create the sustainable balance between affordability and what we may assume to be affordable housing .
Finally , I would suggest professional oversight and supervision of housing projects , which the Consulting Engineering industry have the capacity to supplement in the public sector , where such expertise is lacking . This oversight will ensure that government is achieving value for money and sustainable development .
www . saaffordablehousing . co . za JANUARY - FEBRUARY 2021 11