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Govt to require 2% of housing grants to go to innovative building technologies

Human Settlements Minister Thembi Simelane

Human Settlements Minister Thembi Simelane

21st January 2026

By: Darren Parker

Deputy Editor Online

     

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The Department of Human Settlements (DHS) will require provinces and metropolitan municipalities to allocate at least 2% of their 2026/27 housing grants to innovative building technologies (IBTs), signalling a push to accelerate housing delivery and improve resilience in disaster-prone areas.

Human Settlements Minister Thembi Simelane confirmed this during a briefing on January 21, which preceded the DHS’s hosting of the Innovative Building Technologies Summit from February 3 to 4, at Nasrec, in Gauteng.

The summit, under the theme ‘Mainstreaming Innovative Building Technologies for Sustainable Human Settlements’, will provide a national platform for government, industry and civil society to explore and assess scalable construction solutions that support the delivery of dignified housing and the eradication of the more than 4 700 informal settlements and mud house settlements across the country.

“The summit will be a national platform dedicated to advancing and showcasing innovative, sustainable and scalable construction solutions that support the delivery of dignified houses, the eradication of informal settlements and mud houses. It will also strengthen our capacity to respond to housing emergencies stemming from disasters,” Simelane said.

The summit forms part of broader strategic interventions aimed at addressing South Africa’s persistent housing challenges, including backlogs, the continued prevalence of informal settlements and the vulnerability of mud houses in rural and disaster-prone provinces.

Simelane stated that extreme weather events, including floods and droughts, regularly displaced communities and damaged housing infrastructure, as well as schools, hospitals, clinics and roads.

Rapid urbanisation and population growth would also require new approaches to housing delivery that were faster, safer and more cost-effective, environment-friendly and climate resilient, she explained.

The summit seeks to identify solutions to these problems that can be deployed at scale, bringing together government spheres, industry leaders, developers, investors, professionals in the built environment and research institutions.

A key focus of the summit would be the role of IBTs in accelerating housing delivery while maintaining quality, safety and regulatory compliance. Simelane emphasised that the department’s Eric Molobi Housing Innovation Hub had been testing technologies including modular and prefabricated construction systems, alternative and locally produced building materials, climate-resilient designs, green energy solutions and smart construction methods that reduced construction time and costs.

“The continued existence of mud houses, particularly in rural provinces, remains a critical concern. These structures are often highly vulnerable to extreme weather conditions, including heavy rains and flooding, posing serious risks to the safety and wellbeing of occupants.

Through the summit, the DHS aims to promote IBTs that offer durable, affordable alternatives that can be rolled out rapidly, while supporting local manufacturing, skills development and ultimately us participating in the second priority of the seventh administration, which is ensuring that we create jobs,” Simelane said.

The summit would also address the on-site upgrading of informal settlements, seeking alternatives for communities that had settled in areas unsuitable for formal housing or where relocation was difficult. Simelane explained that government aimed to reduce congestion, introduce permanent housing solutions and improve the quality of human settlements without displacing residents unnecessarily.

“Rapid construction . . . is of importance, and the development of permanent, dignified housing that improves quality and brings back the dignity of our people, and also prevents them from any of the disasters. The summit will examine how modular and prefabricated and repeat, deployable housing systems can be used to respond to emergencies,” she said.

She said the DHS would align innovative solutions with the country’s regulatory framework, including building standards, safety requirements and environmental regulations.

Discussions will explore how the certification and approval process can be strengthened to enable wider adoption of IBTs. The summit will feature an exhibition of technology solutions, allowing developers and implementing agents to assess suitability for large-scale housing projects.

Simelane stressed that IBTs also supported economic transformation and inclusive growth by creating opportunities for local production, enterprise development, skills transfer and job creation.

She said summit attendance had been confirmed by 505 delegates so far from 43 departments, with 30 exhibitors presenting IBT solutions. Simelane said the DHS expected the summit to transition from discussion to actionable projects, ensuring that allocations for IBT projects were budgeted at the start of the next financial year in April.

“The summit will bring together all three spheres of government, industry leaders, developers, investors, professionals in the built environment and research institutions to engage on practical solutions that can support the development of safe, resilient and integrated human settlements.

“A key focus of the summit will be the role of IBTs in accelerating housing delivery while maintaining quality, safety and compliance with regulatory standards,” Simelane said.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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