President Ramaphosa sets ambitious plan in motion to solve housing backlog

President Cyril Ramaphosa has outlined a transformative vision for South Africa’s construction sector to combat the nation’s looming housing crisis.

Speaking at the Innovative Building Technologies Summit, held over two days at Johannesburg's Nasrec Expo Centre, Ramaphosa highlighted the need for innovative approaches to address a staggering housing backlog of more than 2 million units.

This challenge is exacerbated by traditional construction methods that struggle against rising urbanisation and the demands of climate change.

The summit, which convened more than 500 leaders from government, industry, and community sectors, served as a platform for exploring pioneering alternatives such as modular homes and 3D printing technologies.

Amidst critical discussions, the reality struck hard: just 17,000 low-income homes were built in the previous year, a dismal figure compared to the target of 63,000.

President Ramaphosa celebrated the government’s efforts thus far, citing an impressive creation of over 5 million housing opportunities via a range of policies—one of the continent’s most ambitious social programmes. However, he candidly acknowledged a paradox within this progress: “Despite this progress, more than 2.5 million families are still on the waiting list for housing throughout the country,” he remarked.

The obstacles of inadequate supply, limited land availability, rising construction costs, and project delivery delays continue to thwart the nation’s housing ambitions.

In a proactive response to these systemic challenges, Ramaphosa announced the establishment of a new Social Compact. This initiative aims to better integrate innovative technologies while safeguarding existing jobs within the construction sector. Illustrating a commitment to rejuvenating the sector, the government proposed a clear roadmap that spans from 2026 to 2030, focusing on funding solutions and regulatory frameworks.