WC Department of Infrastructure Requests Reasons for National Government’s Housing Budget Cuts

Following the National Department of Human Settlement’s (NDHS) decision to cut R300 million from the Western Cape’s grant allocation of R1.987 billion for human settlements in the 2024/55 financial year and in the baseline over the MTEF, the Western Cape Department of Infrastructure (DOI) has written to the NDHS requesting that they provide the documentation that was used to inform their decision.

Western Cape Minister of Infrastructure, Tertuis Simmers, said, “It is critical that the National Department of Human Settlements engages with us and shows us how they came to this decision. We have to come to a resolution, because there is simply too much at stake for housing beneficiaries in this province. This R300 million budget cut puts current projects and hundreds of housing opportunities in the Western Cape at risk.”

The DOI submitted its adjusted 2024/25 business plan in September 2024, confirming that the department was on track to spend the full R1.987 billion human settlements grant allocation. The NDHS approved this business plan in January 2025. However, despite this approval, the R300 million budget cut was issued under the Division of Revenue Act on 3 March 2025, leaving the DOI unable to process over R179 million in existing payments for projects currently underway, with additional payments anticipated.

The following multi-year projects are directly affected due to the unilateral budget cuts:

• City of Cape Town: Gugulethu Infill, Macassar, Edward Street & Forest Village
• Witzenberg: Vredebes
• Swellendam: Railton
• George: Metro Grounds
• Hessequa: Stilbaai Melkhoutfontein
• Knysna: PHP projects
• Oudtshoorn: Dysselsdorp & Bongolethu
• Matzikama: Klawer & Vredendal
• Saldanha Bay: Laingville

“From our side, we believe that we have given all the evidence needed to show that we are on track to spend our full human settlements budget allocation and deliver the housing opportunities we have committed to. Qualifying beneficiaries must be able to move into the homes they rightfully deserve. I am committed to engaging our national counterparts to urgently resolve this matter,” Minister Simmers concluded.