Human Settlements Minister Thembi Simelane has hailed the Emerging Developer Incubator and Post-Investment Support Programme, which aims to empower emerging developers.
Launched in Sandton, Gauteng, the incubator programme will catalyse the transformation of the built environment and assist the Department of Human Settlements in achieving its five-year targets.
The department’s 2025/2030 Medium Term Development Plan (MTDP) seeks to deliver over 200 000 housing units, including 237 000 serviced sites, and 15 000 social housing units. The plan also seeks to upgrade over 4000 informal settlements.
The technical support programme, a brainchild of the department’s agency, the National Housing Finance Corporation (NHFC), will present an opportunity for contractors and emerging property developers to participate and play an active role in assisting the department in housing the nation.
Speaking at Friday’s launch, Simelane commended the NHFC for initiating the “indispensable and bespoke” incubation programme, noting that working together in the human settlement value chain, they can “move the needle as far as transformation is concerned”.
The Minister highlighted that the initiative is intrinsically linked to one of the priorities of the government of driving inclusive growth and job creation, and a transformative three-year initiative designed to promote inclusivity and sustainability within the housing sector.
Recognising the challenges faced by emerging developers, including weak balance sheets, limited access to finance, and inadequate technical expertise, Simelane said the NHFC has strategically introduced this programme to address these barriers directly, by providing structured support to aspiring developers, with a keen focus on majority Black-owned and designated groups.
“What is particularly outstanding is that the three-year programme aims to support aspiring developers from majority Black-owned and designated groups by providing non-financial support and facilitating project sustainability through skills transfer and built industry technical assistance.
The Minister noted that the human settlement sector is currently beset with a myriad of challenges of blocked projects abandoned by contractors and developers, with capacity to manage projects, and access to finance being among the few contributing factors to these challenges.
The introduction of the initiative is to ensure an increased delivery of housing units within the sector; grow the participation of aspiring developers in the housing value chain, with an added focus on designated groups (women, youth and people with disability), and ease access to funding from the NHFC and from other financiers.
Monitoring
The Minister also assured that the launch of the programme is not a rhetorical statement.
“We are not here for a talk-shop, we must be intentional and deliberate in driving transformation and in empowering the mentioned designated groups. At the core of the programme is capacity building, which ensures that emerging developers gain essential skills to manage and deliver successful projects.
“The incubator offers hands-on on and off-site support throughout the project lifecycle, from feasibility studies to financial modelling and compliance with statutory regulations, as well as construction monitoring. We are doing away with the tendency of launching projects of this magnitude and design without post-project monitoring and evaluation to measure impact and success.”
She emphasised that a key risk mitigation strategy embedded within the programme is the post-investment technical monitoring function, which ensures that the projects maintain quality and efficiency standards, while developers receive ongoing oversight and advisory services.
The NHFC will collaborate closely with the appointed incubator service provider experienced in contractor and developer support, ensuring adherence to industry best practices and skills transfer to the NHFC itself.
“This Emerging Developer Incubator Programme is designed not only to provide immediate support, but to cultivate a new generation of capable and self-sustaining developers who will contribute meaningfully to the housing sector.
“By aligning with best practices and leveraging past lessons, the department and the NHFC are setting the stage for long-term transformation and economic inclusion,” Simelane said. – SAnews.gov.za
Watch a Incubator programme to empower emerging developers related video:
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