Housing Pre-Finance in Nelson Mandela Bay

Back To Projects

Focus Areas: Housing

This project takes place in the Govan Mbeki settlement in the Nelson Mandela Bay Metropolitan Area in the Eastern Cape. Land has been acquired and divided into 298 plots. 31 houses have been constructed and are the first batch of a continuous housing process. All beneficiaries have acquired serviced sites. Houses are 50m2 brick and mortar structures with ceilings. Finished houses have plastering, electrification, painting as well as installation of baths, hand basins, sinks, and toilets. this is an in situ project with the beneficiaries already having serviced erf’s. Roads have also been provided where necessary, mixed gravel, and tarr. Housing development in the project is following the Peoples Housing Process (PHP) approach to community development. Daily management of the construction process is handled by the community members elected from within the beneficiary group to form the Community Construction Management Teams (CCMT). Slow reimbursement from Government has been a major challenge. In 2012 funds of USD 183 878 were given to construct a further 17 houses in the area. 

Location: Govan Mbeki, Nelson Mandela Bay, South Africa
Bunita Kohler sdi@courc.co.za (+27) 21 689 9408 View Website
Project social media channels:

Project information updated: 20 March 2014

Project in depth

Detailed Information

This project was initiated by the South African Alliance of Community Organisation Resource Centre (CORC), Informal Settlement Network (ISN), Federation of the Urban Poor (FEDUP) and uTshani, the national urban poor fund, in 2011. This was done as a result of an MoU being signed at the International Slum Dwellers’ Conference in May 2006.  This saw FEDUP, the National Department of Housing, and SDI sign to eradicate informal settlements in the country (by providing houses). This translated into the Housing department pledging 1000 housing subsidies to the Federation per province. Before the project started, the Eastern Cape Department of Housing signed the contract.
The building and labour work force for this project are drawn from the community. This means that there are economic benefits for the members as they are remunerated for their labour. This allows for saving, of which there are four groups. Participation in saving has improved but not to the desired level to support the mobilisation process, especially in view of there being non-FEDUP beneficiaries within the project. Sustainability depends on securing an adequate system of pre-financing and on greater capacity within the communities. Within the subsidy system the expectation is that pre-financing will have a recovery rate of 90 – 100%. Currently the procrastinated process of the Provinces honouring claims is placing uTshani under financial strain and affecting the roll-out of scale. The model will be sustainable provided payments are received within the stipulated frame of 30 days. This will enable site progress to improve and the desired number of unit outputs to increase. Skills were transferred through the project, including plastering; construction and electricity reticulation, which can be used in the future and help with maintenance.

Funding Information



Implementing Partners

Federation of the Urban Poor (FEDUP)

Community Organisation Resource Centre (CORC)

uTshani Fund

Norway Ministry of Foreign Affairs