Challenges Facing South African Local Government in Shaping Housing-Driven Economic Development in Townships

Abstract

Democratic efforts to provide township housing in South Africa have made significant strides but largely failed to integrate local economic development. The disconnection between housing provision and economic strategies has perpetuated a fragmented urban landscape where township residents continue to endure inadequate living conditions and limited access to sustainable economic opportunities. This paper examines challenges faced by Mangaung Metropolitan Municipality in expediting coordinated township housing and economic development, with specific focus on the local governance characteristic. The municipality’s struggle to uphold the constitutional right to adequate housing while fostering vibrant local economies underscores the broader national challenge of aligning housing policy with economic development goals. Drawing from the lens of top-down and bottom-up urban renewal approaches, the paper underscores the importance of harmonizing government-led strategies with community-driven initiatives to achieve sustainable outcomes.

Employing a qualitative research design, the study utilized purposive sampling to conduct in-depth interviews with key stakeholders including municipal officials, human settlements practitioners, and academics. Thematic analysis was applied to identify and categorize systemic barriers impending effective integration of housing and economic development. Findings reveal that despite a robust policy framework, significant institutional weaknesses undermine progress. These include inadequate administrative and technical capacity among officials, restrictive regulatory frameworks and persistent political instability. Resource constraints such as chronic funding shortages and mismanagement, insufficient infrastructure and a lack of technical expertise, further exacerbate the challenges. Additionally, there are critical stakeholder-related issues including poor interdepartmental coordination and limited community engagement. These deficiencies hinder participatory planning, foster mistrust and contribute to social resistance towards the local government.

The paper argues that these systemic barriers undermine not only the municipality’s capacity to deliver adequate housing but also its ability to leverage housing as a catalyst for local economic development. In response, the paper proposes a set of local governance reforms designed to enhance service delivery, build institutional and stakeholder capacity and promote housing-led economic development. Recommendations include streamlining regulatory frameworks, improving interdepartmental coordination and institutionalizing community participation mechanisms. By addressing these structural deficiencies and leveraging both top-down and bottom-up approaches, the paper contends that it is possible to transform township housing development into a platform for economic empowerment, thereby advancing urban development and promoting social equity. Finally, the findings contribute to a growing body of scholarship that emphasizes the critical need for integrated approaches to housing and economic development in the pursuit of sustainable and inclusive urban futures in South Africa.