SA’s Housing Delivery Gains Momentum as Provinces Accelerate Spending and Upgrade Efforts

Simelane acknowledged that most provinces and metros are firmly on track to utilise their 2025/2026 budget allocations — a key step in accelerating service delivery and preventing grant rollovers.

 

South Africa’s push to improve living conditions and expand access to dignified housing has gained significant traction, with provincial governments showing marked improvement in spending and delivery performance. Human Settlements Minister Thembi Simelane praised the progress during the final Minister and MECs (MinMEC) meeting of 2025, held in Buffalo City Metropolitan Municipality, Eastern Cape.

Simelane acknowledged that most provinces and metros are firmly on track to utilise their 2025/2026 budget allocations — a key step in accelerating service delivery and preventing grant rollovers.

By the end of September 2025, provinces had spent:

• R7.36 billion of the R14.15 billion allocated through the Human Settlements Development Grant (HSDG)

• R1.6 billion of the R2.8 billion allocated through the Informal Settlements Upgrading Partnership Grant (ISUPG)

This translates to 52% spending under the HSDG and nearly 60% under ISUPG — a substantial improvement compared to previous years, where delays and under-expenditure slowed the provision of basic services and housing projects.

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Free State Leads Performance

The Free State emerged as a standout performer, reaching:

• 85% expenditure on the ISUPG

• 65% expenditure on the HSDG

After several years of poor financial performance, the province’s turnaround was highlighted as a model for others.

“We are encouraged that provinces are seized with restoring people’s dignity,” Simelane said. “The delivery of 9,682 serviced sites and 18,068 housing units demonstrates strong progress toward our overall five-year target of 237,000 housing units and 314,000 serviced sites.”

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Metro Performance Under Review

While progress is notable, metros have been urged to accelerate their spending of:

• R9 billion under the Urban Settlements Development Grant (USDG)

• R4.7 billion under the Informal Settlement Partnership Grant (ISPG)

A dedicated MinMEC session with metro mayors is scheduled for early 2026 to address persistent challenges and mitigate risks to service delivery.

Simelane stressed:

“Every unspent rand translates to a family whose dignity is not restored.”

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Emergency Housing and Disaster Response Strengthened

The meeting also reviewed disaster preparedness, especially in KwaZulu-Natal, Eastern Cape, and Western Cape — regions most prone to extreme weather events.

Between April and September 2025:

• 2,167 Temporary Residential Units (TRUs) were deployed

• Highest allocations:

  • KwaZulu-Natal: 979 units

  • Eastern Cape: 595 units

Although progress was acknowledged, outstanding requests now exceed available units — prompting the National Treasury to allocate additional resources focused on high-impact areas.

A key policy shift is underway: phasing out temporary shelters in favour of permanent, resilient housing solutions. The first pilot will take place in the Eastern Cape as part of a new integrated approach to disaster housing.

Preparedness measures ahead of peak weather season include:

• Mapping vulnerable settlements

• Identifying Temporary Emergency Accommodation (TEA) sites

• Enhancing operational capacity and intergovernmental coordination

• Strengthening partnerships for rapid deployment

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Looking Ahead

The meeting also reviewed progress on several national housing priorities, including:

• The Innovative Building Technology (IBT) Summit scheduled for 3–4 February 2026

• Acceleration of the national title deeds restoration programme

• Reporting commitments under the UN’s New Urban Agenda

Simelane said she remains optimistic:

“South Africa is entering a new phase of delivery discipline. With improved spending performance, strong political leadership, and a commitment to human dignity, we are building communities where people can thrive.”

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