1. STEVE TSHWETE LOCAL MUNICIPALITY, MPUMALANGA PRESENTATION BY CLLR E P NKOSI, MEMBER OF THE MAYORAL COMMITTEE BUILDING HOUSES OR SERVICED LAND THE HOUSING CONUNDRUM 1

2. BACKGROUND Situated in Mpumalanga ± 130 km from Pretoria Approximately 160 km from Johannesburg Population 182 000 Main centres : Middelburg & Hendrina Climate : Cool winters, moderate summers 2

3. VISION TO BE THE LEADING COMMUNITY DRIVEN MUNICIPALITY IN THE PROVISION OF SUSTAINABLE SERVICES AND DEVELOPMENTAL PROGRAMMES 3

4. MISSION WE ARE COMMITTED TO THE TOTAL WELL BEING OF ALL OUR CITIZENS THROUGH: RENDERING AFFORDABLE, COST-EFFECTIVE, ACCESSIBLE, EFFICIENT AND QUALITY SERVICES; EFFECTIVE MANAGEMENT SYSTEMS, PROCEDURES, SKILLED AND MOTIVATED WORKFORCE; MAXIMISING INFRASTRUCTURAL DEVELOPMENT THROUGH THE UTILIZATION OF ALL AVAILABLE RESOURCES; IMPROVING THE QUALITY OF LIFE BY CO-ORDINATING YOUTH, GENDER AND SOCIAL DEVELOPMENT PROGRAMMES; 4

5. MISSION (continued) CREATING AN ENABLING ENVIRONMENT FOR ECONOMIC GROWTH AND JOB CREATION; ENSURING EFFECTIVE COMMUNITY AND RELEVANT STAKEHOLDER PARTICIPATION AND CO-OPERATION; COMPLIANCE WITH THE BATHO-PELE PRINCIPLES; TO STRIVE TO SUSTAIN THE FIDUCIARY POSITION OF THE MUNICIPALITY TOWARDS ACHIEVING CLEAN AUDIT 5

6. CORE VALUES To always treat everyone with dignity and respect; To perform our duties with integrity, honesty and diligence 6

7. ACHIEVEMENTS WINNING HAS BEEN OUR TRADITION AS A MUNICIPALITY 2009/10 and 2010/11- Clean Audit Report 2011 First runner-up National Greenest Municipality Competition 2011 Provincial Champions Greenest Municipality Competition 2011 -2012 Seven Blue Drops in respect of potable water (drinking water) 2010 Best Work Learning Place Award 7

8. ACHIEVEMENTS (continued) 2010 Cleanest/Greenest Champions 2009 Cleanest/Greenest Champions 2008 Govan Mbeki Housing Awards 2007 Provincial 1st Runner-up Cleanest Town Competition 2007 National Vuna Awards (Project Consolidate) 2007 National Vuna Awards (KPA Financial Viability) 2007 National Vuna Awards (1st Runner-up) 8

9. ACHIEVEMENTS (continued) 2007 Mpumalanga Provincial Winners 3rd place in the National Cleanest Town Competition 2006 Provincial Cleanest Town Champions 2006 Vuna Awards National Project Consolidate Champions 2006 Vuna Awards Provincial Champions 2006 Komanani Excellence Award 2005 Provincial Cleanest Town Runner-up 2005 9

10. ACHIEVEMENTS (continued) Provincial Cleanest Town Runner-up 2004 Vuna Awards Provincial Runner-up 2004 Provincial Cleanest Town Champions 2003 Vuna Awards Provincial Champions 2003 Provincial Cleanest Town Champions 2002 10

11. PROVISION OF HOUSING More than 10 000 subsidies secured over 15 years Reason – availability of serviced stands It continuously happens that subsidies are awarded to municipalities which are unable to provide the necessary serviced stands on which the houses can be built. 11

12. PROVISION OF HOUSING (continued) Province then lands up in a situation where the allocated funds need to be committed urgently in order to avoid having to hand it back to the national treasury and be labelled as a non performer. A municipality where serviced stands are available, is then approached to make those stands available for the utilization of the available funds. Steve Tshwete has, in this way, been able to obtain large numbers of subsidies which were originally earmarked for other municipalities in the Province. 12

13. DEALING WITH CRISIS'S Serviced stands enables municipality to deal with crisis that may arise Eviction of 450 informal residents Land Affairs prepared to acquire the land Servicing impractical Serviced stands provided as alternative Immediate security of tenure Subsidies provided for in sithu upgrading 13

14. CURRENT WAITING LIST Presently at 15 000 50% backyard dwellers A few months ago 250 of the backyard dwellers invaded vacant municipal land. We interacted with them and informed them that they were on the housing waiting list but that it will, due to lack of funding, still take many years before they would receive their houses. 14

15. CURRENT WAITING LIST (continued) They then made it absolutely clear that life in the backyards of others was becoming unbearable to them. They had no security of tenure, could be kicked out at any time and them and their children were constantly subject to verbal abuse from landlords. They made it abundantly clear that their immediate need was for a piece of land that they could call their own and on which them and their children can live in peace without being at the mercy of anybody else. 15

16. HOUSING OR SERVICED LAND A housing subsidy presently stands at R54 650 for the top structure only. To this amount the cost of land and services amounting to ± R26 000 has to be added. This means that for the same cost that a house can be provided, three fully serviced stands with running water, water borne sewerage, electricity and proper roads can be made available. 16

17. HOUSING OR SERVICED LAND (continued) In this way we would be able to ensure that residents obtain security of tenure and a sense of belonging which will go a long way in avoiding the service delivery protests that we are currently experiencing. These protests are to a large extent caused by the frustration of individuals who have nothing to lose. The danger of such protests will be greatly reduced if a citizen at least has ownership of a properly serviced stand. 17

18. HOUSING OR SERVICED LAND (continued) At Steve Tshwete we are surrounded by coal mines. These mines are, by law, required to invest relatively large amounts in social projects in the areas within which they operate. We find it difficult to convince them to service land which the municipality is prepared to provide. 18

19. HOUSING OR SERVICED LAND (continued) They prefer to build houses because such projects are obviously more visible and provide the mining company with more publicity. However, the municipality will insist that at least a large portion of their available funding is used for the servicing of stands for our people. 19

20. RECOMMENDATION Let us provide our communities with fully serviced stands as quickly as is humanly possible in order to ensure that every South African, rich or poor, will be the proud owner of his own piece of this beautiful land of ours. Housing can then follow at the pace we can afford. 20

21. CONCLUSION Program Director, I hope that the above experiences of our municipality will provide some food for thought and that it will ensure some discussion around the question of the provision of serviced land as opposed to the building of houses over a longer period of time. 21

22. I THANK YOU ! 22