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Integrating Poor Populations in South African Cities - Agence ...

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7. Access to Hous<strong>in</strong>g: The Ma<strong>in</strong> End Goal of Urban Development Policies<br />

to build entire neighbourhoods of BNG houses. To allow promoters to <strong>in</strong>vest <strong>in</strong> this<br />

area of construction, a f<strong>in</strong>ancial <strong>in</strong>stitution, the NURCHA, has the role of offer<strong>in</strong>g loans<br />

at advantageous rates to promoters that get <strong>in</strong>volved <strong>in</strong> build<strong>in</strong>g houses for the poorest.<br />

The new BNG houses (photo 5) are slightly larger and are somewhat better made.<br />

Indeed, the amount of the subsidy was <strong>in</strong>creased to allow for this improved quality<br />

and rose progressively from 12,500 rand to nearly 40,000 rand <strong>in</strong> 2004. 40<br />

Photo 5.<br />

BNG Houses<br />

98<br />

Photo credit: Tamlyn Little and Dylan Little, Tyme Photography.<br />

Thus, this policy of provid<strong>in</strong>g home ownership is the most widespread <strong>in</strong> <strong>South</strong><br />

Africa and corresponds to the solution most frequently utilized by the government to<br />

house populations that are unable to acquire a home with their own funds. A large<br />

percentage of the population expresses the desire to obta<strong>in</strong> this type of hous<strong>in</strong>g. There<br />

are two primary reasons for this desire. First, this hous<strong>in</strong>g policy has become part of<br />

the culture, and the people still liv<strong>in</strong>g <strong>in</strong> <strong>in</strong>formal conditions want to benefit from it.<br />

Second, the homeowner model attracts a large number of households. The taste for<br />

40. 12,500 rand = 957 euros; 40,000 rand = 3,060 euros.<br />

<strong>Integrat<strong>in</strong>g</strong> <strong>Poor</strong> <strong>Populations</strong> <strong>in</strong> <strong>South</strong> <strong>African</strong> <strong>Cities</strong> © AFD 2009

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