Govt Moves to Unlock R37 Billion Housing Backlog, Targets Over 200 Stalled Projects

While the Eastern Cape has no formally stalled projects, it faces persistent challenges related to mud housing replacement programmes.

The South African government has unveiled an ambitious plan to revive and complete more than 200 stalled housing projects worth an estimated R37 billion, in a decisive push to address long-standing delivery delays affecting thousands of households.

Human Settlements Minister Thembi Simelane, addressing Parliament during an oral reply session in the National Council of Provinces (NCOP), confirmed that 212 blocked, abandoned or stalled projects have been prioritised for intervention in the 2025/26 financial year.

Massive Backlog Reflects Systemic Challenges

The scale of the intervention highlights deep-rooted issues in the housing delivery system, including:

• Contractor abandonment

• Poor workmanship

• Legal disputes

• Infrastructure constraints

• Administrative delays

“These projects are collectively valued at approximately R37 billion,” Simelane said, underscoring the urgency of restoring stalled developments.

Free State Emerges as Epicentre of Crisis

The Free State has been identified as the hardest-hit province, with:

• 154 stalled projects requiring urgent intervention

Many projects were left incomplete due to:

• Contractors abandoning sites

• Substandard construction materials

• Incomplete structures, often limited to foundations

Provincial Breakdown: Uneven Impact Nationwide

The housing backlog varies significantly across provinces:

• Gauteng: 12 stalled projects, largely large-scale hostel upgrades affecting many households

• KwaZulu-Natal: 9 projects, some delayed by natural disasters

• Limpopo: 4 projects

• Mpumalanga: 2 projects

• Northern Cape: 3 projects

• Western Cape: 7 projects, impacted by land, infrastructure and legal issues

• North West: 21 large “mega” projects, many serving 500–800 households each

While the Eastern Cape has no formally stalled projects, it faces persistent challenges related to mud housing replacement programmes.

Legal Battles and Contractor Failures Stall Progress

Simelane pointed to legal disputes and contractor non-compliance as major causes of delays.

• Some projects have been stalled by court cases between contractors and stakeholders

• Payments have been suspended where work quality is substandard

• Non-compliant contractors are being reported to the Department of Public Works

Focus on Long-Delayed Projects

The department is prioritising projects that have remained incomplete for over a decade.

“We are focusing particularly on projects dating back to between 2006 and 2014,” Simelane said.

This includes large backlogs in:

• North West

• Free State

Early Gains: 815 Housing Units Delivered

Government interventions are already showing results.

• In 2024/25, over 200 projects were identified for unblocking

• This led to the delivery of at least 815 housing units nationwide

Infrastructure and Funding Reforms Underway

To accelerate delivery, government is:

• Strengthening conditional grant support to provinces

• Improving bulk infrastructure provision

• Unlocking the Community Residential Units (CRU) programme

These measures aim to ensure that housing projects are not stalled due to lack of services such as water, electricity and roads.

Disaster Recovery Adds to Pressure

In provinces like KwaZulu-Natal and Eastern Cape, housing delivery has been further delayed by:

• Floods and other disasters

• Slow emergency response mechanisms

While some communities have been relocated, several projects remain incomplete.

Commitment to Deliver for Affected Communities

Simelane reaffirmed government’s commitment to ensuring that affected households are not left behind.

The department’s strategy combines:

• Project-level interventions

• Stronger oversight of contractors

• Improved coordination with provinces

Turning the Tide on Housing Delays

With billions at stake and thousands of families waiting, the government’s push to unblock stalled housing projects represents a critical effort to restore confidence in South Africa’s housing programme.

If successfully implemented, the initiative could significantly reduce the housing backlog and deliver long-overdue homes to communities across the country.