Minister Thembi Simelane: Media briefing on Human Settlements Dept Budget vote 2025/26

Deputy Minister of Human Settlements, Tandi Mahambehlala
Director-General of the Department of Human Settlements, Dr Alec Moemi
Deputy Directors-General of the Department of Human Settlements
Chairperson and Board Members of the Entities of the Department
Members of the media

Good day,

Thank you for gracing us with your presence at this important media briefing. We have convened here today to inform South African citizens about the upcoming Budget Vote 33 of the Department of Human Settlements, its plans for the next five years, in line with the 2024-2029 Medium-Term Development Plan (MTDP), and the 2025/2026 priorities of the department.

We have undertaken to deliver the following over a five-year term:

• 237,000 Breaking New Ground (BNG) units

• 314,000 serviced stands

• 140,000 subsidies disbursed through various housing interventions to the missing middle

• Upgrading 4,075 informal settlements

• 15,000 social housing units

• Register and hand over 80,000 title deeds

• Improve the management of available rental stock by achieving a 95% tenanting rate and a 90% collection rate in social rental stock.

Our Budget Vote is presented under the theme "Leveraging technologies for resilient, sustainable human settlements." We believe it is essential to enhance our systems to deliver housing programmes efficiently in a technologically evolving world. We are putting in place new technological systems to address inefficiencies in our Housing Subsidy System (HSS) for better resource management and service delivery.

Working with the State Information Technology Agency (SITA), we are developing the National Digital Human Settlements Management System, which will modernise how we manage human settlements data and improve coordination across departments. Through this system, citizens will be able to apply online for different housing programmes and be informed about the outcomes of their applications. This will improve efficiency, transparency, and accountability in managing construction projects, ensuring timely completion and accurate resource allocation.

Innovation is central to our work. We are prioritising green Innovative Building Technology (IBT) projects through the NHBRC and integrating spatial data to align with the District Development Model (DDM).

In his 2025 State of the Nation Address (SONA), President Cyril Ramaphosa urged us to act swiftly in addressing inequalities in human settlements by disrupting apartheid spatial planning and bringing people closer to the cities. We will provide serviced stands to enable qualifying beneficiaries to build homes near economic centres.

We will unpack our plans regarding the number of BNG units, serviced stands, subsidies disbursed, social housing units, and the informal settlements we plan to upgrade, working with strategic partners.

For the 2025/2026 financial year, we are focusing on addressing the housing delivery backlog and reviving blocked projects. We have urged our provinces and metros to prioritise completing unfinished projects before implementing new ones.

We are accelerating the issuance of title deeds, which will be a focal point in the next five years as part of Operation Vulindlela. We are collaborating with various sectors to overcome challenges in the title deeds issuance programme, particularly township formalisation.

The National Housing Finance Corporation (NHFC) is playing a crucial role in expanding access to affordable housing for the missing middle, and transforming the sector. The introduction of the First Home Finance programme for rural areas has led to a surge in applications for government assistance in building homes.

Our projects continue to create job opportunities nationwide, including employment generated from project-funded developments and skills development and learnership programmes focused on empowering the youth. This reflects our commitment to inclusive economic growth, youth empowerment, and sustainable job creation.

Illegal occupation of property remains a serious challenge. This financial year, we will introduce policy nuances and develop a Policy Framework for the Prevention of Illegal Eviction from Unlawful Occupation of Land Act (PIE) to address the mushrooming of informal settlements that become a burden on the state.

We were recently in the Eastern Cape to assess how the three spheres of government, leveraging intergovernmental relations and the DDM, have responded swiftly to the devastating disasters that claimed over 100 lives. We commend NGOs such as Gift of the Givers and Shoprite for their swift response, alongside government efforts.

The President also visited the affected areas, and our department has implemented both short- and long-term interventions. Victims have been relocated to Temporary Emergency Accommodation, and we have identified suitable land for permanent housing with the assistance of traditional leaders and municipalities.

We urge affected victims to cooperate with government and local leaders during these processes, understanding that many are attached to the areas where they previously lived due to proximity to work or schools.

The stability and functionality of the Entities of the Department of Human Settlements are crucial for ensuring good corporate governance and effective programme delivery. We have ensured that Boards and Councils have been appointed at our Entities since December 2024, and the process of filling other vacancies is ongoing.

Regarding the MTDP, the current fiscal cuts require us to do more with less. The 2025-2028 Medium-Term Expenditure Framework (MTEF) allocation stands at R101.2 billion, with the current year's allocation at R34 billion. Of this, R30.8 billion is grants to Provinces and Metros, constituting 90.7% of our total current budget.

We will not tolerate shoddy workmanship, and strategic partners, including developers and contractors, must deliver quality work, on time, and within budget. We are committed to addressing the pressing needs of the people.

This Budget Vote details the strides we have made in transforming the sector, through empowerment initiatives and programmes aimed at women, youth, people with disabilities, and veterans.

I thank you.