DEPARTMENT OF HUMAN SETTLEMENTS ANNUAL PERFORMANCE PLAN - JULY 2020 2020 2021
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DEPARTMENT OF HUMAN SETTLEMENTS
ANNUAL PERFORMANCE PLAN
2020 – 2021
JULY 2020
PR187/2020
ISBN: 978-0-621-48550-9
OUR HOMES IN HILLSIDEVIEW, BLOEMFONTEIN
1
STATEMENT OF THE EXECUTIVE AUTHORITY
The Annual Performance Plan is tabled
in the 6th Administration, and is hinged on
the context of the broader policies,
theme and key priorities for government
in this era. The decade of unity and
renewal: Towards a social compact for
cohesion and nation building. Tabled
in the context of commemoration of the
65 years of the Freedom Charter and the
birth of the United Nations all within the
country’s celebration of Youth Month,
this plan is a reflection of the context in
which our work is aimed. This Annual
Performance Plan is also tabled in the
period meant to recognise one of the
most committed citizens of our country
Nelson Mandela, the Mandela Month.
Which accentuates the values that he
stood for – unity and justice among
others.
This Annual Performance Plan (APP) is
developed taking into account the
challenges of the 6th Administration and
focusing on the theme: Let’s Grow
South Africa Together. This is a theme
that must underline all government work
MEC MOTSHIDISE KOLOI
and messages to achieve this goal –
growing South Africa together through
unity
Our Annual Performance Plan would be incomplete if it does not take into account the current
COVID-19 that befell the country in the last quarter and thus changed the way government does
business. In our work henceforth, we will take into account lessons learnt here to prevent any
future catastrophe from having an unprecedented impact such as the one experienced with
COVID-19.
This APP is also guided by the theme, discussions and resolutions of the Human Settlements
Indaba held on 6 March 2020 which sought to pave the way for an integrated and collaborative
approach in providing human settlements. This Indaba brought all stakeholders together to make
way for this social compact in order to ensure that all contributions towards human settlements
development are taken into account. This as we sought to ascertain that our goal to provide
integrated human settlements and improved quality of household life is achieved significantly.
2
KEY PRIORITY AREAS OF THE SECTOR
“Housing is a foundation upon which all rights rest! Without stable shelter, everything else falls
apart!” Minister Sisulu at the Human Settlements Indaba. Human Settlements development too, is
a key pillar in achieving sustainability goals as illustrated in the impact it makes on economic
transformation, environmental sustainability, job creation, health, education and training, skills
development etc.
Our overall strategy as human settlements development mandate adheres to a different strategic
approach that seeks to meet a variety of needs in human settlements. As a result, we had to rethink
our approach to strategy to development of human settlements and nationally consider:
• Spatial transformation and consolidation (place-making) of human settlements
• Focus on building integrated communities (racially, economically, functionally)
• Densification in urban settlements
• Shift focus towards provision of serviced sites to enable self-build
• Upgrade informal settlements on well-located and safe land
• Take advantage of solar energy technologies, rainwater harvesting and internet connectivity
• Upscale innovative building technologies and materials to ensure cheaper and faster rollout
• Sector transformation through women and youth set-asides and material supply chain
TRANSLATING KEY PRIORITIES INTO OUR KEY FOCUS FOR THE YEAR, AND TERM OF
ADMINISTRATION (MTSF)
Key priorities of this era must guide and visibly underlie the focus of our work. These must be
translated and envisioned in the value chain of the work of the department. This approach will
enable us to consciously and coherently contribute to the achievement of these priorities as we
seek to accomplish what is mostly needed the world, in Africa, in South Africa, and the Free State.
Our work supports priorities of the United Nations’ Chapter on human settlements development as
expressed through the Habitat Agenda.
Our consolidated focus and approach seek to contribute to achievement of the national goal through
the following targets for the MTSF (2019-2024). Our provincial targets are clearly illustrated under
each programme.
a. Spatial transformation through multi-programme integration in 94 Priority Development
Areas and rezoning of acquired land for human settlements development.
b. Adequate housing and improved quality living environments, through 470 000 housing
units, 300 000 serviced sites, 30 000 social rental units, 12 000 community residential units,
and 1 500 informal settlements formalised
3c. Security of tenure, through issuing title deeds and eradicating the title deeds backlog. This
has received much attention in the past term and will equally be focused on for improved
performance as we seek to make an impact on land ownership.
The sixth administration calls for a truly different approach, a way of working that is conscious of
an evolved public, a critical opposition and a strive torn environment with much competition for
attention in the public space. Facing the local government election next year, an election that could
change the landscape of government, our message, our voice and therefore our work, need to seek
to anchor the message and work of government as the sole reality.
We will use the value chain of our work to make significant contribution towards the achievement
of our national key priorities as outlined above. This year too, we will illustrate our commitment to
good governance and excellent performance as we deliver all our targets mainly, to provide homes
for our people.
MA KOLOI
EXECUTIVE AUTHORITY
17 JULY 2020
4STATEMENT OF THE ACCOUNTING OFFICER
Overview
Vision
Integrated and Sustainable Human
Settlements
Mission
The department will develop cohesive,
sustainable and integrated human
settlements in the Free State through:
• Sound administration and engagement
of all spheres of government and
social partners
• Functional settlements that are
spatially, socially and economically
integrated
• Provision of affordable housing
• Increased access to basic services
• Acceleration of land tenure rights
Core values and responsibilities
The Department’s inherent values as
informed by, amongst other, Batho Pele
principles are:
• Professionalism, Integrity and
ACTING HOD: ADV. TSHEPO TSUAELI
Leadership
• Quality
• Resilience
• Compassion and Empathy
• Restoration of Dignity
• Value for Money
Main Services
To manage and administer housing subsidies and oversee construction of housing units
To facilitate the eradication of the informal settlements and reduce buffer zones
To manage the technical aspects of all housing programmes regarding the quality, quantity,
norms and specifications
To promote, manage and regulate the Social Housing, Medium Density and Hostel
Redevelopment Programme in the Province.
To promote, manage and regulate the rental housing market.
To manage, implement and monitor the Housing Capacity Building Programme and establish
sustainable partnerships.
5 To manage, implement and regulate legal advisory services to the Member of the Executive
Council (MEC), Head of Department and the Department in general on housing related civil
legal suits.
To manage and administer housing contracts fairly, equitably and transparently while promoting
housing delivery.
To manage and monitor the inclusion of the EPWP principles in selected housing contracts.
To formulate housing policies and the monitoring of the impact of their implementation.
To manage and administer the housing assets (rental stock) of the Department.
To ensure safe, salubrious, economic and environmentally friendly development.
To submit all applications for land development and land use changes to the Townships Board
for consideration and in turn submit the recommendations of the Townships Board to the MEC.
To ensure the upgrading of land tenure rights in the Free State, conduct investigations and
lodge deeds of transfer in terms of the Conversion of Certain Rights into Leasehold or
Ownership Act, 1988 (Act 81/1988).
To facilitate the opening of township registers as well as assisting municipalities and to access
available state land for developmental purposes.
Overall focus during the previous financial year and the key accomplishments of the
institution during this period.
The department set out to carry out its primary mandate in the previous financial year. Our
performance was not as planned due to various challenges. These vary from contractor and labour
related issues to teething problems of new contractors, financial shortfall as a result of over
commitment by the department. Progress was made
in most projects, leading to completion of some while others would be completed in the current
financial year - in some cases as multi-year projects.
Land acquisition, infrastructure installation in view of developing new settlements in various towns
was also significantly achieved.
In the pre the following achievements could be highlighted:
• land was acquired for human settlements development
• erven planned and surveyed for development
• new sites were connected to basic water and sanitation services as part of the Integrated
Residential Development Programme
• households were connected to basic services as part of the Informal Settlements Upgrading
Programme
• To ensure quality of our houses, projects were enrolled with the National Home Builders
Registration Council (NHBRC)
As part of our contribution to subsidized rental accommodation, the following items were achieved
• Progress was made with CRU in the process of being upgraded
• Similarly, new affordable Social Housing rental units were completed.
Our Finance linked Individual Subsidy Programme provided homes for over 100 beneficiaries and
much marketing as well as consumer education was conducted on this programme to create
awareness of this subsidy.
6This is a slow programme due to various reasons including availability of housing stock or houses
within a desirable price range, qualification criteria that still leaves out many would have been
beneficiaries in the GAP market, financial institutions that are reluctant to become partners in the
programme due to among others, credit ratings of most beneficiaries.
Nationally title deeds have been prioritised as part of home ownership coupled with land ownership.
Though a slow progress has been made, the department achieved distribution of title deeds to
various communities throughout the province. Human Settlements is about ensuring a secure future,
and this is what we are building towards.
Strategic focus for the next financial year and the medium term period ahead
The department will align itself to the priorities as set out in the national human settlements strategic
framework for this term as well as for targets in this financial year. These were outlined in the Human
Settlements Indaba as priorities for the sector and partners involved.
KEY PRIORITY AREAS
Transforming the economy and creating jobs - Job creation through Human Settlements projects
value chain.
Stepping up the fight against corruption - Managing our procurement processes, projects etc.
Advancing health and education - the overall role of human settlements development i.e.
ensuring sustainability, livelihood and improved settlements that support good health and overall
wellbeing of communities including improved self-perception and dignity]
Fighting drug abuse, gangsterism and Gender Based Violence (GBV), issues of space and
dignity. Stability in individuals and in homes, contribute to reduction of these. Well planned and
homely neighbourhoods make for safer spaces
Building a capable state - working better, contributing to government priorities and making
government credible
Fostering greater social cohesion - integration of communities
Building a better Africa and a better world – ‘housing is a foundation upon which all rights rest!
Without stable shelter, everything else falls apart!’ – Minister Sisulu.
Our contribution through human settlements – poverty eradication, creating peaceful
communities
Acknowledgements and indicate the institution’s commitment to the implementation of the
Annual Performance Plan.
We commit to implementing our Annual Performance Plan and achieve our set targets. We also
commit to contributing to a vision of using human settlements value chain to create employment
opportunities so as to reduce inequality and poverty, to achieve other sustainability issues and overall
improve lives of fellow South Africans.
ADV. TSHEPO TSUAELI
ACTING: ACCOUNTING OFFICER
17 JULY 2020
7Official Sign-Off
It is hereby certified that this Annual Performance Plan:
Was developed by the management of the Department of Human Settlements under the
guidance of Ms M.A Koloi
Takes into account all the relevant policies, legislation and other mandates for which
Department of Human Settlements is responsible
Accurately reflects the Impact, Outcomes and Outputs which the Department of Human
Settlements will endeavour to achieve over the period 2020/ 2023 MTEF period.
Mr Ben Leeuw:
Acting-Programme Manager: Housing Programmes Implementation
Ms Carol Tlali:
Programme Manager: Human Settlements Development Planning
Ms N Molikoe
Chief Financial Officer
Ms M.J Ramakatsa:
Head Official responsible for Planning
Mr Thabiso Makepe:
Acting-Programme Manager: Project Management Unit
8Official Sign-Off (continued)
It is hereby certified that this Annual Performance Plan:
Was developed by the management of the Department of Human Settlements under the
guidance of Ms M.A Koloi
Takes into account all the relevant policies, legislation and other mandates for which
Department of Human Settlements is responsible
Accurately reflects the Impact, Outcomes and Outputs which the Department of Human
Settlements will endeavour to achieve over the period 2020/ 2023 MTEF period.
Adv. Tshepo Tsuaeli:
Acting-Accounting Officer
17 July 2020
Approved by
Ms M.A Koloi
Executive Authority
17 July 2020
9TABLE OF CONTENTS
PART A: OUR MANDATE 11
1. Updates to the Relevant Legislative And Policy Mandates 11
2. Updates to Institutional Policies And Strategies 15
3. Updates to Relevant Court Rulings 15
PART B: OUR STRATEGIC FOCUS 16
1. Updated Situational Analysis
16
2. External Environment Analysis 16
3.Internal Environment Analysis 17
PART C: MEASURING OUR PERFORMANCE 32
1. Programmes 32
1.1 Programme 1: Administration 32
1.2 Programme 2: Housing Needs, Research and Planning 33
1.3 Programme 3: Housing Development 36
1.4 Programme 4: Housing Assets Management 42
2.Explanation of Planned Performance over the Medium Term Period 42
3.Programme Resource Consideration 44
4.Updated Key Risks and Mitigations 49
5.Public Entities 49
6. Infrastructure Projects 50
7.Public-Private Partnerships 61
PART D: TECHNICAL INDICATOR DESCRIPTIONS 61
Annexures to the Annual Performance Plan 61
Annexure A: Amendment to the Strategic Plan 61
Annexure B: Conditional Grants 62
Annexure C: Consolidated Indicators 65
Annexure D: District Development Model 65
10PART A: OUR MANDATE
1. UPDATES TO THE RELEVANT LEGISLATIVE AND POLICY MANDATES
Constitutional The Department derives its mandate from section 26(1) of the Constitution of
Mandate the Republic of South Africa, Act 108, 1996
Legislative Mandates
Public Finance Establishes the duties and responsibilities of government officials in charge
Management of finances. The Act aims to secure transparency, accountability and
Amended Act, 1999 sound financial management in government and public institutions
(Act 29 of 1999)
Public Service Act, To provide for the organisation and administration of the public service of the
1994 (Act 103 of Republic, the regulation of the conditions of employment, terms of office,
1994) discipline, retirement and discharge of members of the public service, and
matters connected therewith.
Skills Development To provide an institutional framework to devise and implement national, sector
Act, 1998 (Act 97 of and workplace strategies to develop and improve the skills of the South African
1998) work force; to integrate those strategies within the National Qualifications
Framework contemplated in the South African Qualifications Authority Act,
1995; to provide for Iearnership which lead to recognised occupational
qualifications; to provide for the ‘financing of skills development by means of a
levy-grant scheme and a National Skills Fund; to provide for and regulate
employment services; and to provide for matters connected therewith.
Labour Relations Act, The purpose of the labour relations act is not only to protect everyone
1995 (Act 66 of 1995) in the workplace but to also promote economic development,
fair labour practices, peace, democracy and social development
Division of Revenue To provide for the equitable division of revenue raised nationally among the
Act (Act 16 of 2019 national, provincial and local spheres of government for the 2019/20 financial
year; to provide for reporting requirements for allocations pursuant to such
divisions; to provide for the withholding and the delaying of payments; to
provide for liability for cost incurred in litigation in violation of the principles of
co-operative governance and intergovernmental relations; and to provide for
matters connected therewith.
Public Service Laws To amend the Public Service Act, 1994, so as to further define, to substitute or
Amendment Act, 1997 to delete certain expressions; to further regulate the application of the said Act;
(Act 47 of 1997 and to provide for the readjustment of the functions of the Public Service
86 of 1998) Commission and the circumscription of the functions of the Minister for the
Public Service and Administration and an executing authority; to make other
provision in connection with the management, administration and functions of
the South African Management and Development Institute and the
administration of the Training Fund; to make further provision in connection with
the implementation or limitation of actions affecting the public service or its
members; to enable the said Minister to have access to certain documents and
information; to make further provision in connection with the power of the
President to amend Schedules 1 and 2 to the said Act; to make other provision
in connection with the inclusion of posts in, or the exclusion of posts from, the
A or B division; to make further provision in connection with appointments,
promotions and transfers; to make further provision in connection with the
discharge of officers; to further regulate inefficiency and misconduct; to further
regulate the receipt of unauthorised remuneration; to make other provision in
connection with the reduction of salaries of officers; to make further provision
11in connection with grievances of officers and employees; to empower the said
Minister to make regulations; and to empower the said Minister to assign certain
functions to officers or employees of his or her department; and to repeal or to
amend other laws relating to the public service so as to remove obsolete
provisions or to effect certain consequential amendments arising from the
readjustment of the functions of the said Commission; and to provide for
incidental matters.
Preferential To regulate procurement of goods and services for the Department in
Procurement Policy compliance with section 217 of the Constitution by ensuring that all
Framework Act, 2000 procurement processes are fair, transparent, equitable, competitive and cost
(Act 5 of 2000) effective.
Conversion of Certain This Act provides for the conversion of certain rights of occupation issued to a
Rights into holder of a site situated in a township whether such township has been
Leaseholds or formalized or not- established under the now revoked Black Communities Act
Ownership Act, 1998 4 of 1984, into leasehold or ownership. The Act therefore makes provision for
(Act 81 of 1988 the determination of affected sites or persons; an inquiry into affected sites;
grievance (appeal) procedures; and the issuing of leaseholds or transfer of
ownership.
Black Communities The Act was repealed save for Chapter 6 and the Regulations thereto. As will
Development Act, appear from the above paragraph, this Act is the principal Act 81 of 1988 and
1994 (Act 4 of 1984) makes provision for the designation of certain areas as development areas and
makes provision for township establishment
Upgrading of Land This Act makes provision for the upgrading of informal rights, viz., and the
Tenure Rights Act, deeds of grant, leaseholds and quitrent title permission to occupy
1991 (Act 112 of
1991)
Interim Protection of This Act recognizes certain informal rights to land. One of the functions of the
Informal Land Rights section is to resettle people who are unlawfully occupying land. In the process,
Act, 1996 (Act 31 of it is incumbent on the section to ensure that the informal rights to land are
1996) recognized in the process of such resettlement.
The Housing Act, Through this legislation, existing and future, and the Housing Code, the
1997 (Act 107 of Department of Housing is carrying out its legislative imperative as set out in the
1997) Housing Act, 1997. Section 2 of the Housing Act, 1997 (Act No. 107 of 1997)
compels all three spheres of government to give priority to the needs of the
poor in respect of housing development (section 2(1)(a)). In addition all 3
spheres of government must ensure that housing development provides as
wide a choice of housing and tenure options as is reasonably possible:
Prevention of Illegal The Prevention of Illegal Eviction from and Unlawful Occupation of Land Act
Eviction from and was promulgated in 1998. The Act repeals the Prevention of Illegal Squatting
Unlawful Occupation Act No. 52 of 1951 and makes provision for a fair and equitable process to be
of Land Act, 1998 (Act followed when evicting people who have unlawfully invaded land, from their
19 of 1998) homes. The Act also makes it an offence to evict legally without due process of
law.
The Housing The Act provides for the establishment of a statutory regulating body for
Consumers Protection homebuilders. The National Home Builders Registration Council will register
Measures Act, 1998 every builder and regulate the home building industry by formulating and
(Act 95 of 1998) enforcing a code of conduct. The implementation of the Act is monitored
continuously.
12The Rental Housing This Act repeals the Rent Control Act of 1976 and defines Government’s
Act, 1999 (Act 50 of responsibility for rental housing property. It creates mechanisms to promote the
1999) provision of rental housing and the proper functioning of the rental housing
market. To facilitate sound relations between tenants and landlords, it lays
down general requirements for leases and principles for conflict resolution in
the rental-housing sector. It also makes provision for the establishment of
Rental Housing Tribunals and defines the functions, powers and duties of such
Tribunals. Provincial housing departments are establishing Rental Housing
Tribunals
Home Loan and The Act provides for the establishment of the Office of Disclosure and the
Mortgage Disclosure monitoring of financial institutions serving the housing credit needs of
Act, 2000 (Act 63 of communities. It requires financial institutions to disclose information and
2000) identities discriminatory lending patterns. The act will come into operation
during 2003.
Subdivision of This Act is used for Town Planning advice to the Department of Land Affairs on
Agricultural Land Act, the subdivision of agricultural land.
1970 (Act 70 of 1970)
The Townships This Ordinance is used for the establishment of towns, subdivision and
Ordinance No. 9 of consolidation, amendment of the general plan and the amendment of town-
1969 planning schemes. The townships board is also instituted in terms of this
ordinance
Disestablishment of The winding down of the South African Housing Trust and the transfer of
South African Trust functions relating to financial obligations were completed during the end of 2002
Limited Act, 2002 (Act and the beginning of 2003 in terms of Act 2002: Disestablishment of SA trust
26 of 2002) Limited Act, 2002.
Public Audit Act, 2004 Regulates the audit of Government Departments and State Owned Enterprises
(Act 25 of 2004)
Social Housing Act, Regulates the Social Housing Market
2008 (Act 16 of 2008)
Spatial Planning and This Act provides a framework for the monitoring, coordination and review of
Land Use the spatial planning and land use management system. It also provides for the
Management Act, establishment, functions and operation of Municipal Planning Tribunals.
2013 (Act 16 of 2013)
Housing Development The Act establishes the Housing Development Agency; provides for its
Agency Act, 2008 (Act functions and powers; and provides for matters connected therewith.
23 of 2008)
The objects of the Housing Development Agency are to:
Identify, acquire, hold, develop and release state, communal and privately
owned land for residential and community purposes and for the creation of
sustainable human settlements
Project manage housing development services for the purposes of the
creation of sustainable human settlements
Ensure and monitor that there is centrally coordinated planning and budgeting
of all infrastructure required for housing development, and
Monitor the provision of all infrastructures required for housing development.
13Implications
The Free State Department of Human Settlements has concluded a
Development Agreement with the HDA, and any future agreements should be
aligned to the objects of the Agency.
National The National Environmental Management Act (Act No. 107 of 1998) (NEMA)
Environmental provides for co-operative environmental governance by establishing principles
Management Act, for decision-making on matters affecting the environment, institutions that will
1998 (Act 107 of promote cooperative governance and procedures for co-ordinating
1998) environmental functions exercised by organs of state; for certain aspects of the
administration and enforcement of other environmental management laws; and
for matters connected therewith.
Implications
All housing developments require an environmental authorization before the
development or any construction activities may precede, which may include an
environmental impact assessment process.
Policy Mandates
National Development Chapter nine of the NDP (Transforming Human Settlements) addresses the
Plan various housing/settlement issues South Africa is currently facing. In terms of
transforming human settlements, the NDP states the following objectives:
Strong and efficient spatial planning system, well integrated across the
spheres of government.
Upgrade all informal settlements on suitable, well-located land by 2030.
More people living closer to their places of work.
Better quality public transport.
More jobs in or close to dense, urban townships.
National Spatial The National Spatial Development Perspective (NSDP) became national
Development policy in 2002 and was revised 2006. The key objectives of the NSDP are to:
Perspective
Provide a framework for discussing the space economy taking
deprivation, resources, infrastructure and potential economic activity into
account;
Establish a common reference point for national, provincial and local
government to analyse and debate the development potential of different
places in the country;
Identify key areas of tension and/or priority in achieving positive spatial
outcomes with government infrastructure investment and development
spending; and
Provide national government’s strategic response to the above for a given
timeframe.
The Housing Code, Government has introduced a variety of programmes which provide the poor
2009 households access to adequate housing in terms of the Housing Act, 1997 (Act
No 107 of 1997). The policy principles set out in the White Paper on Housing
aim to provide poor households with houses as well as basic services such as
potable water and sanitation on an equitable basis.
The National Housing Code; 2000 was substantially revised and consequently
the new National Housing Code, 2009 was introduced. The 2009 Code is aimed
14at simplifying the implementation of housing projects by being less prescriptive
while providing clear guidelines.
The National Housing Code, 2009 further sets the underlying policy principles,
guidelines, norms and standards that apply to Government’s various housing
assistance programmes introduced since 1994 and subsequently updated.
Comprehensive Plan The Comprehensive Plan also focuses on Informal Settlement Upgrading to
for Sustainable meet the Millennium Goals of the United Nations to improve the lives of slum
Human Settlements dwellers.
(BNG)
Free State Growth and Driver 9: Facilitate sustainable human settlements of the FSGDS states that
Development Strategy the status of human settlements is mostly extremely low densities, low levels
of efficiency and long distances between places of employment and places of
work. In order to improve economic efficiency, the FSGDS proposes that
efficient resource use should be prioritised
Provincial Spatial The Free State Provincial Spatial Development Framework (PSDF) is a
Development provincial spatial and strategic planning policy that responds to and complies
Framework with the relevant legislation and policy. SPLUMA provides for all spheres of
government to compile and publish a spatial development framework. The NDP
encourages all spheres of government to prepare SDFs that promote a
developmental state in accordance with the principles of global sustainability.
Other
Human Settlements Strategy for the Free State Province
The purpose of the Free State Human Settlements Strategy is to guide a longer term spatial and investments
perspective that will inform the programming of human settlements projects in the Province.
Intergovernmetal structures
(a) President’s Coordinating Council
The Forum provides for the engagement at National level of relevant stakeholders to ensure that the
national government objectives are realised.
(b) Premier’s Coordinating Forum
The Forum provides for the engagement at Provincial level of relevant stakeholders to ensure that the provincial
government objectives are realised.
Provincial Specific Programme
(a) Operation Hlasela
This is a specific provincial programme focusing on intergrated service delivery. All the departments activities
are coordinated to ensure intergrated human settlements.
2. UPDATES TO INSTITUTIONAL POLICIES AND STRATEGIES
None
3. UPDATES TO RELEVANT COURT RULINGS
None
15PART B: OUR STRATEGIC FOCUS
1. Updated situational analysis
The department renders Human Settlements services to the community in the Province. There are
internal factors impacting negatively and positively in the rendering of Human Settlement Services. The
Situational analysis will be focusing on the following matters (External and Internal Environment analysis,
in situational arrangement and performance delivery environment
2. External Environment Analysis
The Department of Human Settlement deals with the internal and external stakeholders in both has direct
and indirect influence in the Departmental programmes and projects. This analysis is done on regular
basis with a motive of tracking changes in stakeholder attitudes over time.
Stakeholder Analysis
Stakeholder Internal/External Stakeholder Influence Interest Linkages
Role/Responsibility High/ High/Low with other
/Low stakeholders
AGSA External Oversight High Low (can’t Treasury
be Audit
consulted Committee
during PROPAC
planning) SCOPA
Municipalities External Broader Planning High Low Surveyor
(IDP aligned with the General
Business Plan) Dept. of water
The custodian of and sanitation
land which is utilised ESKOM
for human
settlements
Bulk Available
Metro (Water and
Sewer)
NHBRC External Registers houses High High Municipalities;
and projects of the Contractors
Department
Banking External Provides housing High Low FLISP
Institutions loans to beneficiaries (Don’t to Beneficiaries
of FLISP be
consulted
during the
planning
process
HAD External Give support to the High High Surveyor
Department in the General
land planning and Municipalities
development Land Owners
programme
16Surveyor External Approves the High High Municipalities
General general plan which HDA
includes sites where
BNG houses are
constructed
Contractors External They are the service High High Municipalities
providers NHBRC
responsible for
constructing housing
units
Conveyancers External Registers title deeds High High Municipalities
of the beneficiaries Deeds Office
SARS
Eskom External Service provider of High High Municipalities
electricity to the Beneficiaries
houses constructed
by the Department
Beneficiaries External Individuals receiving High Low Municipalities
(community) services from the Contractors
Department
Military External Beneficiaries of the High High Municipalities
Veterans houses specifically Beneficiaries
allocated for military
veterans.
3. Internal Environmental Analysis
Department Structure
The departmental structure was discussed on the 28 February 2020. During the strategic planning
session, the department and districts proposed a better way of functioning structurally. The structure was
further referred to different stakeholders for inputs.
A
Human Resource
The Department has filled 401 posts in the structure and has 78 vacant funded post that needs to be filled.
Currently the vacancy rate is 16%.
Information technology
The unit continues to provide, maintain and support information management systems in the Department
of Human Settlements. The Department uses a Housing Subsidy System (HSS) and other National
controlled systems. To date no system failure has been reported to have hampered service delivery in
the Departments of Human Settlements
The status of the institution regarding compliance with the BBBEE Act
The primary purpose of the BBBEE Act and the Codes is to address the legacy of apartheid and promote
the economic participation of Black People in the South African economy.
The department has developed an exclusive women and youth database in order to facilitate the
participation of women and youth and other pillars of BBBEE Act
17The Department will ensure that 30% of HSDG grant spent on women and 10% of HSDG grant spent on
youth, HDI, women and youth representation, for human settlement development. To date 31.38%
Women and 24,09% Youth have participated.
The status of the institution regarding women and people with disabilities
women
The table below indicates the statistics of women as per department’s workforce as well as female SMS
members:
WORKFORCE
01/04/2019 31/03/2020
M F TOTAL M F TOTAL
187 230 417 180 227 407
% 45% 55% % 44% 56%
SMS
01/04/2019 31/03/2020
M F TOTAL M F TOTAL
16 10 26 15 10 25
% 62% 38% % 60% 40%
The department has established an Employment Equity Committee which reports quarterly to DPSA and
department of Labour on equity statistics. The committee is at the final stage of developing the
departmental Equity Plan which is to be approved by the HOD. The plan if implemented as envisaged will
address the imbalances of gender in the department.
The table below indicates the statistics of women who benefitted in the acquisition of Skills development
in the department:
2019/20 FINANCIAL YEAR
F M TOTAL
Bursaries 14 6 20
70% 30%
Short Courses 26 29 55
47% 53%
Workshops/ 13 9 22
Conferences 59% 41%
18The table below is mainly on young women below the age of 35 who have benefitted from the department.
F M YOUNG
WOMEN
Part Time Bursaries 14 6 6
70% 30%
Activities organized and coordinated by Special Programmes in championing the emancipation of women
issues in the department.
30 Women in the department attended International Women’s Day in Ladybrand
5 out of 10 Female SMS attended PSWMW in August 2019 and there was panel discussion on women
empowerment issues.
Deputy Director Labour Relations is a sexual harassment advisor and is sharing reports with Special
Programmes on presentations made during information sessions and reports which are submitted to
DPSA annually on sexual harassment.
Employee Wellness report indicates the following:
12 young women in the department participate in different sporting codes like netball (6), Aerobics
(3), Chess (1), and Jukskei (2)
Priority and intervention reports that 7 young women in the department are beneficiaries of FLISP (Finance
Linked Individual Subsidy) in the period under review.
Due to budgetary constraints female SMS members could not attend the 3 rd Annual leadership
Development Conference and the program is then deferred to 2020/21 financial year.
PEOPLE WITH DISABILITIES
The table below indicates the statistics of people with disabilities in the department:
31/03/2019 31/03/2020
M F TOTAL M F TOTAL
2 1 3 1 1 2
As of the end of 2019/20 financial year the department stands at 2/407 which constitutes 0,5%
representation of people with disabilities in the department’s workforce.
Recommendation has been made in the department’s Employment Equity Plan as to what HR has to do
in terms of meeting equity targets as per the threshold.
One male official who have declared his disability status on PERSAL has passed on in March 2020.
Deaf Organizations and PANSALB were engaged during 2019 DRAM
19(Disability Rights Awareness Month) to provide the department with Sign language training for officials.
Skills development and Deaf Organizations are finalizing processes for the training to be rolled out in
2020.
The department started with the process of procuring the assistive device (Hearing Aid) for a
female official who have declared her disability on PERSAL
External/Internal Strengths Weaknesses Opportunities Threats
Political Political Head Ways of working: Government Service delivery protests
Lack of Policy
Strong integration and Positive
administrative coordination contribution by
leadership other
Non-existence of stakeholders
Presence and job descriptions (Portfolio
support within Committees)
districts Provision of office
space Critical systems
in place and
Operation
Hlasela
Economical Departmental Spending pattern Infrastructure Low economic growth
Resource not in line with the investment High rate of
Allocation prescribed norms Revenue unemployment
collection
(through tax
admin)
Social Diverse staff Low staff moral Available supply Public perception on the
compliment Non-compliant of people scares delivery of services
Human skills High of
Resources poverty/unemployment
practices
Technological Regulated IT Inadequate 4th Industrial Cyber attack
government Funding revolution (going
systems Lack of green/paper less/
infrastructure Wi-Fi; APPS)
integration
Legal Departmental Non-compliance Less litigations Pressure groups
policies in with policies National challenging the
place Legislation government challenging
Advocacy by departmental policies
NGOs
Environmental Organisation Insufficient office Less Water scarcity
health and accommodation environmental Type of soil
safety catastrophes
mechanisms (tornados; floods;
in place etc.
20Institutional Arrangement
The Constitution assigns housing as a concurrent function of national and provincial government. The
Housing Act (1997) outlines the responsibilities of national, provincial and local government for housing
delivery. The national Department of Human Settlements develops policy and strategy, determines
delivery goals, monitors and evaluates sector performance, establishes a national funding framework for
housing development, and allocates the housing subsidy budget to provincial departments and public
entities.
Performance Delivery Environment
SOPA Commitments
During the State of the Province Address, the honourable Premier of the Free State Province announces
Government commitment in relation to Priority 4: Spatial Integration, Human Settlements and Local
Government. The following commitments were pronounced.
COGTA to develop a dedicated training programme for Municipal Planning Tribunals.
Low-income families into urban centres that offer the same opportunities to high-income earners.
A targeted number of serviced sites to be planned and delivered
A targeted number informal settlements to upgraded
A targeted number of new developments in green field areas.
Internal reticulation in forty-three informal settlements which are at various stages of implementation.
Completion of eight township establishment projects in the six municipalities:
o In Masilonyana - Slovo Park Winburg Baipeing • In Nala - Khalinkomo Vergenoeg • In Mantsopa
- Marikana Palamenteng R1, R2 and R4 Green Fields • In Mohokare - Refengkgotso Ezibeleni
• In Setsoto - Masaleng (Senekal) Clocolan • In Kopanong - Ipopeng Riverside
Commit to accelerate land redistribution in the province underway.
Negotiations with municipalities to release land and allocate sites to citizens
The Department of Human Settlements service is critical in providing basic services, amongst others, housing,
water and sanitation and land tenure. During the strategic planning session held by the Department, an
agreement was made on a better vision and mission and fully aligned strategy. The department also looked at
the risks exposure and came up with mitigation strategies for all identified risks. The Department vowed to
create a culture of informed planning, monitoring and reporting performance. All plans have been aligned our
plans the January 8, MTSF, NDP, Provincial and Sectoral plan, allocated budget as well as the District Model.
21The new framework for developing the Strategic plans and the Annual Plans indicates that a focus must be on
the “outcomes”. Priority 4: Spatial integration, Human Settlements and Local Government is the Department’s
main priority. Women (30%) and Youth (10%) contractors are planned to benefit in Human Settlements
projects.
The following factors inform the departmental planning and service delivery:
Household Infrastructure
Drawing on the household infrastructure data of a region is of essential value in economic planning and
social development. Assessing household infrastructure involves the measurement of four indicators:
Access to dwelling units
Access to proper sanitation
Access to running water
A household is considered "serviced" if it has access to all four of these basic services. If not, the
household is considered to be part of the backlog. The way access to a given service is defined (and how
to accurately measure that specific Definition over time) gives rise to some distinct problems. IHS has
therefore developed a unique model to capture the number of households and their level of access to the
four basic services.
A household is defined as a group of persons who live together and provide themselves jointly with food
and/or other essentials for living, or a single person who lives alone.
HOUSEHOLDS BY DWELLING UNIT TYPE - FREE STATE AND NATIONAL
The characteristics of the dwellings in which households live and their access to various
services and facilities provide an important indication of the well-being of household members.
It is widely recognized that shelter satisfies a basic human need for physical security and
comfort.
22Figure 8.1: Percentage of households that lived in formal, informal and traditional dwellings by
province, 2018 (Stats SA; General Household Survey: 2018).
100%
90%
80%
70%
60%
50%
40%
30%
20%
WC EC NC FS KZN NW GP MP LP RSA
Other 1,4 0,5 0,2 0,1 0,2 0,0 1,9 0,0 0,0 0,8
Informal 19,0 6,3 11,7 12,4 6,7 18,6 19,8 8,4 4,9 13,1
Traditional 0,0 20,5 0,7 2,2 12,6 0,5 0,2 3,9 2,2 5,0
Formal 79,6 72,8 87,3 85,2 80,5 80,9 78,2 87,7 93,0 81,1
More than eight-tenths (81,1%) of South African households lived in formal dwellings in 2018, followed by
13,1% of those that lived in informal dwellings, and 5,0% in traditional dwellings. In terms of the Free State
by 2018 households living in formal dwelling were at 85.2% whereas those living in informal and traditional
dwellings were at 12.4% and 2.2% respectively. As a result, the department will have to double their effort
in assisting with the formalization of the settlements; construction of houses and registration of title deeds
to those living in formal and informal dwelling whilst a different approach is needed for those living in
traditional dwellings.
Water and sanitation
There a steady improvement at the national level with regard to the percentage of households
with access to piped or tap water in their dwellings, off-site or on-site; however; a decline was
observed in five provinces between 2002 and 2018. The largest declined was observed in
Free State (-4,5 percentage points- from 91.6 in 2002 to 91.1 in 2018) followed by
Mpumalanga (-4,0 percentage points) and Gauteng (-1,6 percentage points). However; in
terms of the percentage of households that have access to improved sanitation per province
from 2002–2018; the Free State showed a significant improvement by 2002 was at 64.7 and
85.5 by 2018 (Stats SA; General Household Survey; 2018).
The proper plan between the department and the municipalities on areas of concerned will
have to be developed and captured in the IDP’s so that the department does not put
infrastructure where there is no bulk water.
23Population
This model estimates that the number of households in South Africa increased from 11,2 million in 2002 to
16,7 million in 2018.
Table 2.2: Number of households per province, 2002–2018
Total population (Thousands)
WC EC NC FS KZN NW GP MP LP RSA
2002 1 217 1 506 247 679 2 070 767 2 785 801 1 121 11
194
2003 1 251 1 518 252 692 2 105 789 2 882 827 1 144 11
459
2004 1 287 1 526 257 703 2 137 812 2 982 851 1 164 11
718
2005 1 323 1 530 261 715 2 168 834 3 088 876 1 181 11
977
2006 1 360 1 532 266 726 2 198 858 3 202 902 1 199 12
243
2007 1 396 1 541 272 738 2 240 881 3 305 929 1 222 12
522
2008 1 432 1 551 277 751 2 284 906 3 416 956 1 247 12
819
2009 1 469 1 561 282 763 2 331 930 3 537 984 1 272 13
128
2010 1 507 1 571 287 775 2 382 956 3 668 1 013 1 298 13
456
2011 1 547 1 580 293 787 2 434 982 3 807 1 043 1 324 13
797
2012 1 585 1 596 299 801 2 495 1 008 3 938 1 074 1 357 14
152
2013 1 626 1 611 305 815 2 556 1 037 4 075 1 105 1 390 14
521
2014 1 670 1 624 311 830 2 619 1 067 4 220 1 138 1 424 14
904
2015 1 718 1 636 318 845 2 683 1 099 4 377 1 172 1 459 15
307
2016 1 771 1 648 325 862 2 752 1 135 4 546 1 208 1 495 15
744
2017 1 823 1 667 333 882 2 827 1 172 4 709 1 248 1 537 16
199
2018 1 877 1 685 342 901 2 905 1 210 4 884 1 289 1 579 16
671
There is a steady increase of the population influenced by the number of reasons; emigration to other
provinces amongst others (Stats SA; General Household Survey: 2018).
The South African mid-year estimates by population group and sex was at 58,8 million. The
24black African population is in the majority (47,4 million) and constitutes approximately 81% of
the total South African population. The white population is estimated at 4,7 million, the
coloured population at 5,2 million and the Indian/Asian population at 1,5 million. Just over fifty-
one per cent (30 million) of the population is female (Stats SA; Mid-year population estimates:
2019).
Table 5: Mid-year population estimates by population group and sex, 2019 (Stats SA; Mid-year
population estimates: 2019).
% of total % of
male total % of total
Number population Number Number
female population
population
Male Female Total
Population
group
Black African 23 124 782 80,7 24 318 477 80,8 47 443 259 80,7
Coloured 2 513 221 8,8 2 663 530 8,8 5 176 750 8,8
Indian/Asian 768 594 2,7 734 413 2,4 1 503 007 2,6
White 2 266 151 7,9 2 385 855 7,9 4 652 006 7,9
Total 28 672 747 100,0 30 102 275 100,0 58 775 022 100,0
The slow population growth in the province and migration has a huge impact in terms of the allocation of
budget. The In-migrates were at 114 624 and Out-migrates were at 154 573 with a net migration of 39
948 (Census 2011 as cited by Stats SA; Mid-year population estimates: 2019). The department planned
to meet the divergent needs of the Free State population for proper houses, amongst others the installation
and connection basic infrastructure (water, running water and electricity) jointly with the relevant
stakeholders like the Department of Water and Sanitation, municipalities, Eskom, etc.; the registration and
allocation title deeds, provision of FLISP related subsidies; rental houses for those who would prefer to
tent rather that to own a house.
Unemployment
According to Quarterly Labour Force Survey by Stats SA: 2018; in 2009, there were a total number of 4.3
million unemployed people in South Africa and it increased by to 6.7 million by the end of the second
quarter in 2019 which represent 29.0% unemployment rate. The Free State province by Quarter 2 of 2019
stood at 34.4% unemployment rate Quarterly Labour Force Survey (Stats SA: 2018)
25Income
The South African economy grew by 1.3% in 2017 and 0.8% in 2018. The World Bank projects 2019
growth at 1.3%, accelerating further to 1.7% in 2020. Given population growth, gross domestic product
(GDP) per capita growth has been close to nil since 2014, leaving little room to reduce poverty.
South Africa is one of the most unequal societies in the world due to the segregation policies of the past.
Furthermore, with respect to reinforcing spatial integration, investing an additional 1% of GDP every year
into collective transportation systems and social housing would reduce their price, and accelerate GDP
growth through higher labor supply. This would lift an additional 0.5 million people out of poverty. The Gini
coefficient was 0.63 in 2015; therefore; Gini index of inequality would lower further by 0.7 point with
vulnerable households and transient poor being the main beneficiaries (The World Bank in South Africa;
2019). Therefore, the department’s plan of constructing amongst others to low-cost housing, provision of
basic services and the construction of rental houses will be done in the spirit of advancing the integrated
spatial planning; providing work opportunities and contributing towards the emergence of the new
entrepreneurship cadres contributing and reducing the levels of poverty.
Spatial investment
The National Development Plan encapsulates the national priorities and the Provincial Spatial
Development Framework (PSDF) helps in advancing the transformation agenda through coordinating and
aligning the national and provincial departmental programmes.
Land release projects
The department has already secured 92,9204ha pieces of land for human settlements development during
the 2016/2017 financial year.
Catalytic and Provincial Priority Projects
The Department will embark on the following Catalytic projects:
Baken Park Project – Bethlehem
Sasolburg subdivision for 7000 sites – Sasolburg
Caleb Motshabi project – Bloemfontein
Vista Ext 2 & 3 Infrastructure – Bloemfontein
Estoire (Airport Node) – Bloemfontein
26Organizational Environment
A department is geared towards the achievement of strategic goals and its objectives. It will
engage in the process of restructuring in order to comply with the Public Service Regulations which
advocates for the reviewing of the organizational structures after every five years.
Management Performance Assessment Tool
The department scored 33% on MPAT 1.8. During 2019, no MPAT assessment was done as per
DPME instruction, however the Department continued to improve in the areas which there was
regress in the past assessment. The quarterly performance improvement plans with the relevant
source documents were submitted quarterly to the Office of the Premier for monitoring and
evaluation.
The department recorded the following human settlements delivery performance outputs at the
end of the 2019 financial year (not yet audited)
5855 Houses were enrolled with NHBRC.
1653 New housing units completed (BNG)
10287 Households have been provided with consumer education
508 Work opportunities were created through human settlements.
6985 Households were connected to basic services as part of the informal settlements upgrading
programme
2602 New sites connected to basic water and sanitation services as part of the Integrated
Residential Development Programme
291 Finance Linked Individual Subsidies Programme (FLISP) delivered, performance on FLISP
has significantly since 2017 and 2018 financial years.
214ha Number of hectares of well-located land acquired or released for human settlements
developments by March 2020
14 Municipalities were supported for the expansion of the National Upgrading Support
(Mangaung, Matjhabeng, Moqhaka, Metsimaholo Dihlabeng, Maluti –a-Phofung) an
exemption was made to other 9 municipalities
4711 Post -1994 title deeds (Act 107 of 1997) were registered
335 Post -1994 title deeds (current) (Act 107 of 1997) were registered
302 Pre-1994 title deeds (Act 81 of 1998) were registered
13 Municipalities were supported towards pre-accreditation - (Matjhabeng, Moqhaka,
Metsimaholo, Dihlabeng, Maluti –a-Phofung
27Challenges affecting the departmental performance:
New housing units have been completed in the province across all programmes
Delay of verifications on incomplete houses affected progress in the housing delivery.
Title deeds (Post 94 Housing Stock: TRG (Restoration Projects) and HSDG (Current Projects) and
Pre- 94 Housing Stock/Act 81/1988
Delays in the registration of title deeds. The Department of Human Settlements identified 4 293 disputes
(amongst of these, are family disputes), some of these cases, are where the HSS approved the beneficiary and
the title deed holder is not the same person. The Provincial Department of Human Settlements drafted and
approved provincial standard operating procedures (SOP)/guidelines to address this matter. Since the inception
of these SOP conveyancers have submitted 519 dispute resolution reports to the Department
The Conveyancers are working with Departmental Legal Services in dealing with the disputes. Dispute
resolution cases were conducted in Mohokare Local Municipality, Metsimaholo Local Municipality, Ngwathe
Local Municipality, Mangaung Metro Municipality and Setsoto Local Municipality
The Department conducted consumer education programmes in the following Municipalities: Metsimaholo
Local Municipality, Mangaung Metro Municipality, Moqhaka Local Municipality, Tswelopele Local
Municipality, Mafube Local Municipality and Matjhabeng Local Municipality. The purpose of the consumer
education programme is to emphasize the importance of reporting deceased estates to the Magistrates
Court or the Master of the High Court. During the third quarter of the 2019/2020 8380 beneficiaries were
educated.
SWOT (STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS) ANALYSIS
During the Strategic Planning session held by the Department in February 2019 the strengths,
weaknesses, opportunities and threads affecting the Departmental performance were constructively
analysed and recommendations were made for implementation. During the Strategic Planning session,
held in February 2020, the Department took upon itself to reflect progress made in the implementation of
those recommendations. Here below is the template reflecting progress made in the implementation of
the action plan made regarding SWOT in 2019.
28STRENGHTS ACTIONS REQUIRED PROGRESS TO DATE RESPONSIBLE PERSON
Organizational structure Review structure according to Proposed structure developed Director DPPM
national benchmarking and
consultation with other
provinces
District model Plan: One district, one plan, The Department to implement district PMU
one budget model
To coordinate – district
manager to make model work
Partnership with Maintain and review MTOP Department is continuously engaging All programme managers
stakeholders (MEDIUM TERM with HDA. On matters of Human
OPERATIONAL PLAN) Settlements
Expand partnership with other
stakeholders such as SITA
Critical IT system Derive lessons learned and IT Officials are continuously Office services – Xhariep
apply elsewhere engaging with their counterparts district will be closed.
for benchmark purpose. Leases be communicated
with public works
Use of Internal audit and Recommendation of internal Improvement in reporting All programme managers
audit committee and external audit
implemented
SOP and institutional Develop SoPs (Standard DPPM
memory Operating Procedures) and
knowledge management be
functional
WEAKNESSES ACTIONS REQUIRED PROGRESS TO DATE RESPONSIBLE PERSON
Non – Structure review process The reviewed structure presented to DPPM Director
Implementation all SMS and MMS
organizational
structure
Lack of Standard Each unit must develop SOP and be Communicated to the meeting on DPPM Director
Operating made available in the internet importance of developing SOPs
Procedures (SOPs)
System down time Upgrade infrastructure Ongoing, funds be availed IT
Low staff moral Survey to find the root cause of the Ongoing All managers
problem
Exit interviews be used to find the
root cause
Inadequate Request be taken in to action Ongoing All Managers
resources /tools of
trade
website updates (IT) Update regular basis ongoing IT
not updated regularly
Aging infrastructure Funding Ongoing IT
Weakness in HSS – processes
should be controlled within the
department thus skills transfer
should take place. Attention to be
paid to accuracy of data capturing
Poor audit outcome Consequence management Improve quality of documents All managers
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