Over R200 Million Invested in Western Cape Student Accommodation by Black-Owned Developers

In a substantial boost to student accommodation and black entrepreneurship in the Western Cape, the Department of Human Settlements has allocated over R200 million towards the development of new housing projects. This funding, facilitated by the National Housing Finance Cooperation (NHFC), is targeted at supporting two black-owned development companies to address the pressing student accommodation shortages in the province.

The announcement was made during a debate on the State of the Nation Address (SONA) by the Human Settlements Minister, Thembi Simelane. The minister detailed the allocations, noting that the first project located in Belhar received R40 million to develop a facility with 136 beds. Meanwhile, the second project in Parrow, originally commenced as an affordable housing initiative, received R170 million and has been repurposed into a student housing complex with 927 beds.

This initiative does not only alleviate housing issues but also supports black-owned businesses, fostering economic growth and entrepreneurial opportunities within the region. This approach aligns with the government's broader goal of empowering historically marginalized communities.

Additionally, the department is collaborating with traditional authorities across other regions, including eThekwini, Umkhanyakude, and Umgungundlovu District Municipalities, highlighting ongoing projects. In Inanda, north of Durban, local leaders are working with First Home Finance (FHF) to allocate land for residents to build homes, demonstrating a holistic approach to addressing housing needs across various communities.

The Minister also shed light on the significant achievements in the First Home Finance scheme, which aims to assist first-time homebuyers who are typically priced out of the housing market. In the 2023/24 financial year, the program aided over 5,000 households, with expectations to meet targets for the next financial year within its first six months.

Looking ahead, Simelane outlined ambitious plans for expanding housing access, particularly for middle-income households, by disbursing 140,000 gap market subsidies through FHF and other mechanisms. This initiative aims to facilitate home ownership near economic centers, enhancing the quality of life and economic stability for new homeowners.

Furthermore, the Minister emphasized the department's commitment to improving land tenure security by streamlining the issuance of title deeds and creating provisions for municipalities to address challenges in undeclared townships. This will not only simplify the process but also enable homeowners to leverage their properties for wealth creation. The goal is to issue 80,000 title deeds over the next five years, marking a significant step towards securing property rights for many citizens.

The strategic investment in student accommodation and broader housing initiatives underscores the government's commitment to resolving long-standing issues through innovative and inclusive policies. By nurturing local enterprise and enhancing infrastructure, the Western Cape is set on a promising path towards sustainable development and improved quality of life for its residents.