The recent comments regarding the delivery of housing opportunities in the Western Cape are disingenuous and reveal a fundamental misunderstanding of the challenges the construction sector has faced over the past five years.
The demand for affordable, well-located housing in our province, and across South Africa, far outstrips supply. Despite this, the Western Cape remains the only province that has successfully engineered and implemented an innovative differentiated-ownership model. This model is a testament to our commitment to finding sustainable and scalable solutions to the housing crisis, setting us apart as leaders in housing delivery.
The Western Cape Government has been at the forefront of accelerating housing delivery through innovative solutions and partnerships. We have adopted new building technologies and alternative delivery models to enhance speed and efficiency, secured private sector involvement, and unlocked new funding sources.
The Informal Settlements Upgrading Partnership Grant (ISUPG) remains a challenge that all nine provinces are still grappling with, largely due to community dynamics and a lack of capacity at the local government sphere. The Western Cape is not alone in facing these hurdles, which are complex and require collaboration across all spheres of government.
We have faced substantial challenges, including acts of criminality such as extortion, intimidation, and land invasions, which have cost the WCG approximately R980 million to secure construction sites between 2019 and July 2024. These acts have diverted critical resources from development and led to significant delays. Additionally, the WCG has also contended with project delays due to contractor non-performance.
It is also important to provide context to the environment in which we operate: the Construction Industry Development Board (CIDB) report documents the severe impact of the COVID-19 pandemic on the construction sector. The pandemic led to project delays, supply chain disruptions, and workforce shortages. Despite these challenges, the WCG has maintained a strong commitment to delivering housing opportunities and enhancing public infrastructure. During the same period, there were several catalytic projects, which were delivered within 10 months of turning sod and even went as far as issuing title deeds with keys in hand to beneficiaries, as was seen at the Blanco housing project in George.