SA Affordable Housing March - April 2019 // Issue: 75 | Page 33

FINANCE MATTERS
Facing the many challenges
of urban development
What are the main challenges in urban development and
how are ‘massive small’ projects geared for the future?
By Paul Jackson, chief executive officer of TUHF
U
rban development has the main aim to upgrade the
lives of South African citizens but government faces
many challenges in achieving this such as urban
sprawl, providing access to economic opportunities,
decent public infrastructure and general economic and
spatial dislocation.
Our cities are dysfunctional and many of our housing and
city development policies have accelerated apartheid
planning. For example, poor people still live far from places
of work and opportunities.
Government’s urban development plans need to deal
directly with combatting urban sprawl by promoting urban
densification through small projects and increased multi-
storey builds.
To create efficient cities there needs to be spatial, social
and economic integration and this objective is unlikely to
www.saaffordablehousing.co.za
be achieved through mega projects, which take place on the
urban peripheries. It is more likely to be achieved through
many small builds and medium-sized projects.
As an SME financier, our mandate at TUHF is to finance
property entrepreneurs who provide affordable and low-
income housing that transform the complexion of property
ownership, empower PDIs (previous disadvantaged
individuals) and therefore actively contribute to urban land
reform. As well as create efficient cities through urban
densification to create economic activity in urban areas.
We support initiatives that are geared towards inclusive
growth and transformation. Government must remove
hurdles to allow ordinary South Africans to get their foot in
the door. When we talk about the scale of massive small, we
are talking about 10 000 x 20-unit projects a year within
city areas.
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