By Lebone Rodah Mosima
Human Settlements Minister Thembi Simelane says South Africa’s housing challenge remains significant, with demand for affordable housing continuing to outstrip supply.
The country’s housing backlog is estimated at about 2.6 million people in need of housing.
Simelane was speaking at the National Housing Finance Corporation’s (NHFC) 30th Anniversary Summit at the Birchwood Hotel in Boksburg on Friday.
She said decades of apartheid spatial planning had deliberately excluded millions of South Africans from property ownership, credit and the basic dignity of a secure home.
“The government of the day recognised a hard truth that the housing crisis could not be solved through public funding alone,” Simelane said.
“We needed an institution capable of mobilising private capital, bridging the gap between what South Africans could afford and what traditional lenders would finance.”
She said the NHFC was established to provide access to housing finance.
Simelane noted that the NHFC’s 30th anniversary coincides with the 30th anniversary of the adoption of the Constitution.
She said Section 26 of the Constitution enshrines the right to adequate housing and requires the state to take reasonable legislative and other measures, within its available resources, to achieve the progressive realisation of the right.
Reflecting on the NHFC’s achievements over the past three decades, Simelane said the figures were impressive but stressed that behind every statistic was a human story.
She said more than R13 billion in housing finance had been facilitated, while more than 800,000 households had been helped to access housing opportunities.
More than 32,000 subsidy approvals have been made through the First Home Finance programme since 2019, with close to R2 billion disbursed and R10.9 billion in private-sector investment leveraged through the programme.
“These are not just figures. They represent families who have a place to call home. They represent children growing up in stable environments. They represent the restoration of dignity,” she said.
Simelane said the First Home Finance programme served the “gap market” — people earning between R3,501 and R22,000 a month who earn too much to qualify for a fully subsidised house but too little to secure a traditional bond.
She said the programme had been expanded to rural areas and thanked traditional leaders for their partnership.
The expansion was in line with President Cyril Ramaphosa’s call for stronger collaboration with traditional leaders, she said, adding that many were driving local development initiatives in their communities.
However, Simelane said government remained frank about the challenges facing the housing sector.
She said rapid urbanisation was placing enormous pressure on cities, with the United Nations projecting that almost 68% of the world’s population would live in urban areas by 2050.
Demand for affordable housing continued to outstrip supply, while economic pressures were making it harder for households to enter the property market, she said.
“The question before us is not whether progress has been made. The question is — how do we accelerate that progress?” Simelane said.
Turning to the NHFC’s strategic focus, she identified three priorities for the next phase of the country’s housing programme: innovation in housing finance, integrated human settlements and stronger partnerships.
On housing finance, Simelane said the NHFC needed to continue adapting, with its transition towards the Human Settlements Development Bank providing an opportunity to achieve greater autonomy and scale.
“We must ensure this transition is completed efficiently and that the new institution is equipped to operate with the agility our market requires,” she said.
On integrated human settlements, she said the country needed to move beyond the delivery of individual houses towards sustainable communities connected to essential services, economic opportunities and secure tenure.
“This means schools, clinics, roads, and recreational spaces alongside housing,” she said.
She said the NHFC’s success over the past 30 years had been built on collaboration with financial institutions, developers, all spheres of government and communities.
“Without regurgitating, I want to emphasise the point that government cannot do it alone,” she said.
Simelane also highlighted the NHFC’s 30th anniversary programme, including its Scholarship Fund, the 30 Stories campaign and a digital archive.
She said the initiatives reflected a commitment to preserving the institution’s legacy while investing in the next generation of housing and built-environment professionals.
Reflecting on the NHFC’s broader legacy, Simelane said its impact should ultimately be measured through the lives it had helped transform.
“If the NHFC’s legacy is measured by the lives it has helped to transform, then its story is ultimately one of people,” she said.
“It is a story of families, communities, and opportunities created. It is a story of dignity restored and futures built.”
“Most importantly, it is a story of a nation being built, one home at a time.”
Simelane said the 30th anniversary was also an opportunity to recognise what could be achieved when government created enabling conditions for partnership and investment to flourish.
She thanked the NHFC board, management and staff for their dedication and acknowledged partners across the sector.
“And to the people of South Africa, we remain committed to the translation of Section 26(1) and Section 26(2) of the Constitution, especially the promise of adequate housing for all, to make it a reality,” she said.
Simelane called on stakeholders to use the summit not only to reflect on the NHFC’s 30-year journey, but also to recommit to the work ahead.
“Together, let us continue building a nation, one home at a time,” she said.
INSIDE METROS
