Wednesday, July 15, 2026

Western Cape Returns R821m to Treasury While Blaming Housing Failures on Under-Funding

Date:

Why Housing Numbers Are Dropping in the Western Cape

The MEC’s Claim

Western Cape MEC for Infrastructure Tertuis Simmers said the province is building fewer homes because the national government isn’t giving enough money. He also pointed out that building a small two‑bedroom house today costs more than building a one‑bedroom house did twenty‑two years ago.

What He Left Out

Simmers didn’t mention that the Western Cape actually gave back R821.5 million that was set aside for housing. This money was split into two parts:

  • R664.3 million for free basic houses
  • R157.2 million for upgrading informal settlements

These funds were for the 2023/24 and 2024/25 financial years, but the province didn’t spend them and had to return them.

The Real Numbers

Over the last six years, housing delivery has fallen sharply:

  • 2019/20: 8,038 homes built
  • 2024/25: 3,046 homes built

That’s a drop of more than 60 %.

Waiting List Crisis

The province’s housing waiting list now holds over 680,000 names. About 450,000 of those people are waiting for a home in Cape Town. The list doesn’t even count everyone who needs a place but doesn’t qualify for a free house, so the real need is even bigger.

Money Misplaced

While housing funds were returned, the province chose to spend money elsewhere:

  • R2 billion over six years on the City of Cape Town’s private police force (LEAP)
  • Another R1.14 billion budgeted for LEAP in 2026/27

During the same period, no discretionary money went to housing. Instead, the province lost the R821.5 million it could have used to build homes.

What the Constitution Says

Housing is a shared responsibility between national and provincial governments. Metropolitan municipalities, like Cape Town, can run their own housing programs and don’t have to rely solely on the province. Policing, however, is a national function.

Better Choices

If the province treated housing like essential infrastructure, it could:

  • Use long‑term loans to build public rental housing
  • Use rental income to pay back the loans and maintain the buildings
  • Offer a mix of housing types: BNG homes, informal‑settlement upgrades, social housing, and “First Homes” for first‑time buyers

This model worked in the past (though only for certain groups) and shows that funding is possible when there’s political will.

Conclusion

The Western Cape’s housing shortfall isn’t just about missing national funds; it’s about the choices made locally. By returning housing money and spending it on policing instead, the province is ignoring a growing crisis that leaves hundreds of thousands waiting for a safe place to live. Teens and young adults deserve a government that prioritizes homes over headlines and puts real solutions ahead of excuses. Only then will the waiting list start to shrink and more young people find a place they can call home.

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