Address by the Mayor of KwaDukuza at the Emerging Property Developers Summit

Programme director, Ms. Lynette Ntuli;

Minister for Human Settlements, Ms. Thembi Simelane;

Chairperson of the KZN Black Property Sector Association, Ms. Nokulunga Mcunu;

Executive Strategist of the KZN Black Property Sector Association, Mr. Zibuko Mcunu;

Business leaders and stakeholders in the property development value chain;

Representatives of government institutions;

Ladies and gentlemen,

 

I am very much pleased to welcome you to this important Summit.

 

The Summit is an important initiative in the effort to change the socio-economic landscape of our region and our country. The history of our country bequeathed us skewed patterns in terms of ownership and participation in various sectors of the economy. For the people, on their own initiative, to put together such programmes and seek to change the status quo, is an important development. 

 

In the shadow of the South Africa’s dark history, emerging black property developers face daunting challenges as a result of skewed ownership patterns that lock them out of economic opportunities, further perpetuating inequality in housing, land, and development.

As government we have an obligation to ensure that participation and ownership in the various sectors of the economy are truly deracialized.

 

KwaDukuza Municipality has embarked on a journey to provide opportunities for Black property practitioners through various programmes, including the appointment of Implementing Agents through its public sector housing delivery mechanisms, and the use of planning instruments to attract investment from black property developers to take advantage of the development of affordable housing opportunities for the lower-middle-income market.

 

The Restructuring Zones (RZs) are government-designated areas, particularly in South Africa, for implementing social housing projects to create more integrated, sustainable human settlements. The programme addresses the spatial, social, and economic inequalities caused by decades of apartheid. Within the KwaDukuza Municipality, restructuring zones (RZs) are linked to the development of human settlements, specifically social and low-cost housing projects. The Municipality, with support from the provincial and national governments, identifies areas for these projects to address housing shortages, manage urban growth, and formalize informal settlements.

 

The overarching goal of RZs is to undo the legacy of segregation by reversing spatial distortions and bringing marginalized populations closer to urban opportunities. This is achieved through three specific objectives, which are: 

• Spatial restructuring which aims to bring lower-income residents into areas with access to economic opportunities, jobs, transportation, schools, and other essential services.
• Social restructuring which promotes a mix of different racial and economic classes to encourage a more integrated society.
• Economic restructuring which supports access to economic opportunities and boosts job creation through new construction and increased local spending

 

The key initiatives include:

·      The creation of Restructuring Zones in areas where there are economic and infrastructure opportunities to provide affordable rental housing through the delivery of Social Housing projects. 

·      The acquisition and packaging of land in strategic areas like Hyde Park, Vlakspruit, in the case of KwaDukuza. 

·      The incubation programme to create small-scale developers by training them through the property development process and creating links with funding agencies and banks

• First Time Home Finance (ex-Finance Linked Individual Subsidy Programme)
• Working hand in hand with the Social Housing Regulatory Authority, which deals with the accreditation and funding of Social Housing Institutions
• Designating areas in the Municipality in Hydepark/Stanger and Ballito/Shakaskraal as Priority Human Settlements Development Areas in order to drive and direct investment and development of affordable housing in those areas
• Land Release programme, where municipal land is made available for the development and packaging of affordable housing projects.

 

One of the key issues this Summit will be seized with relates to support for Black developers. As a Municipality we have packaged the following:

 

• Strategic Land Release: this is done by reserving municipal and state-owned land specifically for emerging Black developers, especially for affordable housing projects. 
• Facilitate Access to Finance by partnering with development finance institutions, private sector companies, and donors to mobilize capital for projects led by emerging Black developers. Arrangements are made for differentiated funding options to help establish funding options and facilitate capital flows into the sector, similar to initiatives by organizations like the National Housing Finance Corporation, Ithala Bank, etc.
• Supportive Regulatory Frameworks by streamlining the approvals process and development rights to empower Black developers, not just to compete but to become industry leaders

 

Government has developed the concept of Priority Housing Development Areas (PHSHDAs). These are specific zones within South Africa designated by the Minister of Human Settlements for targeted housing development, intending to address residential requirements and advance integrated human settlements. This initiative seeks to enable spatial transformation, address apartheid spatial patterns, and reinvigorate urban environments by expediting housing provision in locations where demand is highest, including among low-income populations in metropolitan districts or regions identified for “urban renewal”.  

 

In the case of KwaDukuza, we have identified a highly competitive space due to the coastal N2 corridor, connected with the inland R102 corridor, which functions as a major collector for the Municipality as a whole. This will provide affordable housing in strategic locations within the KwaDukuza Town/Hyde Park Nonoti Area. This will encourage efficient service delivery and economic enhancement in KwaDukuza Municipality.

 

As a Municipality we are aware that property development goes beyond the scope I have outlined above. The sector includes building of shopping malls and centres and other infrastructure necessary for decent human settlements. This Summit is one important platform that will be used to explore ways and means to ensure participation of emerging Black developers in this sector.

 

Programme director and distinguished guests,

 

As I conclude, I am proud to mention that KwaDukuza Municipality has been recognised and was accorded the prestigious award for service delivery and governance at the  South African Property  Owners Association 2025 Convention held in Sun City last week. This is testimony that KwaDukuza is full of opportunities. Ours is to harness the potential of this local economic space for the benefit of everyone, including the previously marginalised.

 

On behalf of Council and the people of KwaDukuza, I wish you success in your deliberations. 

 

Thank you.