At the present rate, it will take the Eastern Cape government more than a decade to provide decent houses for the 62,000-plus people on its approved beneficiary list. The province will need more than R16bn to deal with the backlog, while its annual budget to address the housing crisis is just over R1.5bn. This was revealed by human settlements MEC Siphokazi Lusithi in a recent report to the Bhisho legislature, in response to questions posed by DA MPL Chantel King.
According to the department’s website, the total housing needs backlog in the province stood at more than 774,700 in October. More than R27bn would be needed to eradicate it. However, in her response to King, Lusithi said the total housing needs backlog was “not yet committed” and needed to go through a qualifying [criterion] process in terms of housing policy”.
“The total projected expenditure to service the 62,000 approved beneficiaries will require R16bn,” Lusithi said. Asked by King how many years it would take her department to clear this backlog, the MEC said it would take at least 11 years. “The department’s current annual budget allocation, as per the human settlements development grant (HSDG), to implement various subsidy programmes averages approximately R1.5bn.
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“Based on this allocation, it is estimated that addressing the existing housing backlog identified through the housing needs register would take approximately 11 years, assuming all listed beneficiaries meet the eligibility criteria outlined in the national housing code and comply with the requirements of the housing subsidy system. “Given the financial constraints resulting from declining budget allocations over the years, the department continues to prioritise destitute households, vulnerable groups, military veterans and child-headed households, in alignment with current budgetary trends and policy directives.” Asked whether any portion of the R1.5bn annual grant allocation had ever been reprioritised, underspent or committed to projects outside the approved human settlements development plan, Lusithi said this had not happened. “However, the department had only reprioritised funds in response to the June 2025 flood disasters, with R60m redirected from the HSDG to finance temporary residential units required to address the needs of disaster-affected victims.”
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