BUILT ENVIRONMENT SEMINAR

ETHEKWINI MUNICIPALITY

UNIVERSITY OF KWAZULU NATAL

MUNICIPAL INSTITUTE OF LEARNING

NATIONAL DEPARTMENT OF HUMAN SETTLEMENTS

14 JUNE 2013

DURBAN BOTANICAL GARDENS CONFERENCE HALL

1. The Department’s take on Human Settlements as a collective responsibility and how this is incorporated into the department’s programmes.

2. Instruments in place to facilitate multi-disciplinary engagement at the national and provincial level, etc.

3. If there are gaps in facilitating this multi-disciplinary engagement share the difficulties

4. Professionalization of human settlements and its implications on the sector;

CONTENT

BACKGROUND

President Jacob Zuma, State of the Nation Address

2009:

“As part of social infrastructure development we will

provide suitably located and affordable housing and

decent human settlements. We will proceed from the

understanding that human settlement is not just about

building houses. It is about transforming our cities and

towns into cohesive, sustainable and caring communities

with closer access to work and social amenities,

including sports and recreation facilities.”

HUMAN SETTLEMENTS AS A COLLECTIVE RESPONSIBILITY

Graphic Demonstration

4

5

6

Legend Water Sewer Electrical

INTERNAL INFRASTRUCTURE

7

KAGISO

INTEGRATED

HOUSING

DEVELOPMENT

Sewer Treatment

Works

Reservoir Site and Pressure

Tower

Legend Water Municipal

Rand Water

Sewer Roads Electrical

Electrical Substation

To Randfontein

BULK INFRASTRUCTURE

8

ENVIRONMENTAL

SPACE

SOCIAL

AMENITIES

HOUSES/

SHELTER/

BULK

SERVICES

INTERNAL

SERVICES

COMMERCIAL

&

BUSINESS

LAND

(TENURE/ ACCESS)

9

HS, housing & property Development process

Land Developers

Identify &

acquire

Land

Secure

Title/

Zoning

Services

and Infra-

structure

SUPPLY DEMAND

Loan

Management

Estate Agents/Originators

Pre-sales

and

Marketing

(allocation)

End-user

Identificati

on

Build and

Manage

Project

Property Developers

Planning

and

Design

Outsource

to Sub-

Contractor Outsource

to Sub-

Contractor Outsource

to Sub-

Contractor

Home

Ownership

Land and

Infrastructure

Finance

Land to Stands

Development

Finance

Stands to Houses

End-user

Finance

Facilitation

(Subsidy)

Houses to Homes

Housing Grant and/or Subsidies

ISU FLISP

HLGS State Land

Release Afford. Rental stock

No electricity

NORTH WEST

- No roads, Water and electricity provided for in the project (Dithakwaneng, North West)

No electricity

Output 1:

Upgrade 400 000 units of accommodation within informal

settlements Stakeholders:

Cooperative Governance and Traditional Affairs Dept. of Water Affairs Basic Education Dept.

Dept. of Rural Development & Land Reform Provincial Departments of Human Settlement

Metropolitan Municipalities, Development Bank of Southernn Africa

Housing Development Agency

Output 2:

Access to Basic Services

Stakeholders: Cooperative Governance and Traditional Affairs

Department of Water Affairs Department of Energy

Department of Transport Rural Development & Land Reform

Provincial Departments of Human Settlement Metropolitan Municipalities

Development Bank of Southern Africa

Output 3:

Land Assembly

Stakeholders:

Housing Development Agency

Public Works

Public Enterprises

Rural Development & Land Reform

Provincial Departments of Human Settlement

Urban Land Mark

UN-Habitat Housing Development Agency

Output 4: Improved Property Market

Stakeholders:

Presidency,

Provincial Human Settlements,

Municipalities

National Treasury

Banking Association of SA

SA Insurance Industry

Financial Service Board

South African Reserve Bank

SAPOA

GAPS IN FACILITATING MULTI-DISCIPLINARY ENGAGEMENTS

GAPS

The strategic challenge of the Human Settlements mandate based on the outcomes approach is effective cooperation with all our partners and adherence to targets and timelines in a constantly changing economic environment .

GAPS

• A weak skills base,

• Low levels of delegation and accountability,

• High turnover in positions,

• Slow administrative and decision making processes,

• Weak co-operation and communication between different spheres of government

GAPS

• Poorly defined separation of responsibilities and delegations),

• Corruption and patronage,

• Problems with procurement and contract management.

GAPS

1 Weak state capacity and poor co-ordination between spheres of government

Persistent and widespread capacity gaps • Simplifying co-operation and co-

ordination between different spheres of government e.g.

- expediting the accreditation of Metro’s, - resolving the issue s of un-funded mandate for housing, - reducing or eliminating the need to co-ordinate multiple sources of funding for housing delivery (the ‘one pot of funding’ principle – e.g. for land, services and top- structures)

GAPS

1 Weak state capacity and poor co-ordination between spheres of government

More effective partnerships and collaborations with the private sector, NGO’s and civil society organisations in order to better leverage this capacity and bring it to bear.

Improved funding instruments which are simpler and more flexible but also better monitored and linked to ring-fenced budgets to ensure policy intentions are carried through and not ‘subverted’ at provincial or local level.

Appropriate budgetary allocations (priority) to achieve an appropriate ‘mix’ of different programmes to ensure that provinces and municipalities achieve an appropriate mix of different housing and human settlement responses and don’t follow the path of least resistance and ignore national strategic housing

Five key strategic levers

ALIGNMENT OF HUMAN SETTLEMENTS MANDATE

LEGAL ENVIRONMENT

FUNDING MODEL

LAND

SKILLS AND CAPACITY

Strategic Levers

Blockages, Enablers

and

Opportunities

National Technical Capacity Development

Strategy Department of Human Settlements

Ensuring sustainable capability to achieve Outcome 8 Policy Objectives

and Outputs

23

Rationale for Capacity Dev. Strategy

• To ensure the availability of requisite capacities to deliver sustainable human settlements;

• To ensure that capacity development covers individual, institutional, and delivery environment capacities, in the National, Provincial & Munics

• To ensure that capacity is in place for the three spheres of government to perform functions provided for in the Constitution & Housing act,

• To ensure that Capacity Development is coordinated within the HS sector

24

TCD Strategy

FOCUS OF TCP STRATEGY

Outcome 8 Outputs • Informal Settlements Upgrading

• Municipal Accreditation • Aff. Rental Housing Stock • Fast State Land Release

• Finance-Linked Ind. Subsidy P • Home Loan Guaran Scheme

2013/16 MTEF Plan

APP

Capacity Assembly Skills and Knowledge

Delivery Chain Process

Management

Institutional Reforms

Special Measures: - Programme Management - Policy Knowledge & Skills - Attitudes and Mindset - Capacity Assembly & deployment

25

Technical Capacity Development Measures

- Improve

Knowledge

- Increase skills

- Shift Attitude &

Mindset

Institutional Re-organization

_____________________________

Business Process

Re-engineering

Systems & work-flow

Delegations

Devolution

Supplementary

Capacity Assembly

__________________________

- Professional

resources

- Get the job

done

- Meet specified

Targets

- Demonstrate

progress

Impact/ Delivery

26

WHY PROFESSIONALISE?

• Effective service delivery and governance and formally educated officials

• Increase career specialists

• Promote lifelong learning

• Set standards to accredit graduate programmes

• Create a Body of specialised knowledge

• Professional Socialisation of the Practitioners

• Facilitative management and intergovernmental relations

• Protect beneficiaries and promote their wellbeing

STRATEGIC DRIVING FORCES

• Continuing professional development

• Transformation through:

- Education

- Quality assurance

- Good management practice

• Establishment of HSPB

STRATEGISING OF OBJECTIVES

• Educate: life-long, quality assurance

• Establish HSPB, register members, regulate conduct

• Establish Code of Conduct, service delivery

• Effective governance, skills, relations

• Professional socialisation

CORE ACTIONS REQUIRED

• Education

• Establish HSPB, promotion

• Register members

• Professional/ethical conduct

• Practice of human settlements practitioners

• Knowledge base promotion

• Network

EDUCATION

• SAQA, CHE and DoHE approvals

• HSPB requirements

• Approved courses

• Need for distance learning

• Life-long learning

• Career path planning

ESTABLISHMENT HSPB • DHS functions - Education promotion - Professional behavior - Practice of HS practitioners - Knowledge base promotion - Register practitioners - Networking • Bill, enactment • Council composition • Establish office and appoint staff • Promote HSPB

Skills capacity: results from current survey in public sector

The main requirement will be for engineering professionals (engineers, technologists and

technicians) and project managers.

22,953 engineers registered with ESCSA

The most comprehensive database of civil engineers was completed in 2005 and showed there

were approximately 15 000 civil engineers, technologists and technicians in SA, with the state

accounting for about 20% of the total (and 15% of civil engineers)

Initial results from a survey in the public sector is set out below

3 348

424

408

85

79

130

348

211

151

120

29

15

167

5,515

Eskom

Denel

Transnet

SANDF

DWA

SAA

DBSA

City of Cape Town

City of Joburg

Nelson Mandela

Ethekwini Municipality

Tshwane Municipality

Ekurhuleni municipality

Water Boards/TCTA

Total

Provisional list of engineers in the public sector excluding SANDF

33

Engineers

Skills DATABASE FROM A SELECT NUMBER OF ENTITIES

• 7,173 artisans (3,468 Eskom, 1,900 Denel, 117 DWA, 200 Nelson

Mandela, 551 City of Jo’burg, 472 City of Cape Town, 337 from

Water Boards)

• 6,132 technicians (4,074 Eskom, 1,731 SAA, 235 DWA, 36

Tshwane, 56 Ekurhuleni)

• 1,359, project planners & managers (1,109, Eskom, 12 Nelson

Mandela, 83 DBSA, 77, City of Jo’burg, 64, City of Cape Town, 14,

Water Boards.)

• 713 Financial managers (642 City of Jo’burg, 54 City of Cape

Town,16 Water Boards)

• 182 Procurement Specialists (15 DBSA, 119 City of Jo’burg, 45

Water Boards)

• 131 technologists (16 DWA, 89 Tshwane, 8 Ekurhuleni, 18 Water

boards)

34 34

Other

professionals

If there are gaps in facilitating this multi-disciplinary engagement share the difficulties

The reality of the current challenge

• SA Population size is above 52 million

Study by Professor Kanyane, Kombi Sausi

and Dr Gregory Houston study

• Between 18 and 24 million South Africans

live in poverty,

• About 5.7 million live with HIV/Aids • Over 7,3 million people are unemployed (including discouraged work seekers) • 35% of the unemployed are youth under 25 years old • 51% of school leavers will not get jobs

• 15 million people depend on social welfare

grants

• Only 6 million South Africans are taxpayers

Social Grants Beneficiary Numbers by Type of Grant, 1997 - 2011

Type of Grant August 1997

(000’s)

April 2001

(000’s)

April 2005

(000’s)

2010/20111 (000’s)

Old Age 1 742 1 878 2 093 2 490

War Veterans 11 6 3 1

Disability 755 627 1 307 1 299

Grant in Aid 10 9 23 Not reported

Foster Care 43 86 256 489

Care Dependency 4 29 86 119

Child Support 401 975 5 634 9 381

Housing 3 000

Total 2 966 3 610 9 403 13 779

Source: Pauw & Mncube (2007), calculated using data from National Treasury, and Budget Review 2011/2012 Note: The child support grant was introduced in 1998, the 1997 beneficiaries shown in the table therefore corresponds to the child maintenance grant. 1 Projected numbers at fiscal year-end.

• Impact of Social Grants

• Number of beneficiaries has increased from about 3 million in Aug 1997 to 13.8 million in

2010/2011

• Driven by the extension of the Child Support Grant (< 1 million in 2001 to 9.4 million in 2010/2011)

42.94 72.05

1037.21

2239.40

364.57

0.0

500.0

1 000.0

1 500.0

2 000.0

2 500.0

Old Age Disability Foster Care Child Support Total

(%)

Percentage Change 1997 - 2011

Determinants of Growth in Expenditure of the Poor since 1995

The current backlog

• 2.2-million

housing units

• 12 million

people

• 2 700 informal

settlements

40

Estimated Delivery of Houses and

Serviced Stands Estimated Delivery

Delivery 2009/10

up to end of Jan

2010

2010/11 2011/12 2012/13

2013/14

EC 29 ,463 23,400 23,400 24,463 26,058

FS 20,184 21,462 21,462 22,438 23,901

GP 47,462 48,553 48,553 50,760 54,071

KZN 8,296 26,626 26,626 27,837 29,652

LP 23,082 22,613 22,613 23,641 25,182

MP 8296 8,181 8,181 8,553 9,111

NC 5,967 6,512 6,512 6,808 7,253

NW 32,971 30,954 30,954 32,361 34,472

WC 33,015 31,698 31,698 33,139 35,300

Total 228,777 220,000 220,000 230,000 245,000

220 000 p.a.

10% of backlog

Projected delivery of houses and serviced stands

against current existing backlog

-250 000

0

250 000

500 000

750 000

1 000 000

1 250 000

1 500 000

1 750 000

2 000 000

2 250 000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Housing units completed Stands serviced Annual Delivery Backlog

Excludes any new

household formation

and population growth

“We cannot be a welfare state. We cannot sustain a situation

where social grants are growing all the time and think it can

be a permanent feature.” SAPA quoted Zuma at a business

meeting in Cape Town, February 2012.

HUMAN Settlements Minister Tokyo Sexwale: "We can't sustain what we are

doing. There has to be a cut-off date. We are discussing that. But you can't cut

off the poor right now, particularly not in the current national economic

environment," Sexwale told the 12th international housing and home warranty

conference at Cape Town's International Convention Centre in November 2011.

SIYABONGA!