Overview of the International Relations Commitments of the

Department of Human Settlements

Presentation to the Portfolio Committee on Human Settlements,

24 August 2011

Presentation Outline1. Rationale for international Relations Commitments2. Approach 3. Overview of Existing International Commitments:

• Cuba• Netherlands• Denmark• China• YouthBuild International• IBSA• Angola• UN-HABITAT• AMCHUD• Cities Alliance

4. Co-operation with Norway on Co-operative Housing

1 Rationale for International Co-operation in Human Settlements

• To receive technical assistance and knowledge on international best practice

• To influence our policies and practices arising from international policy prescripts and best practice

• To form part of international debates on human settlement issues to: • Shape the debate on human settlements as an urgent

global priority• Defend our constitution and policies• Provide leadership and an example

2 Approach to International Co-operation:• International programme for the Department of Human

Settlements has a dual function• Serving the interest of the Department in achieving its

mandate of creating sustainable human settlements• Serving the interest of the country through international

advocacy and technical assistance• Context: South African Foreign Policy priorities

• Consolidation of the African Agenda• Strengthening South-South co-operation• Strengthening North-South co-operation• Participation in the Global System of Governance• Strengthening Political and Economic Relations

Holistic 4- pronged approach:

1. Pursuing and building relationships with partners/donors

2. Active participation in the international multilateral arena for implementation of the Habitat Agenda

3. South-South Co-operation with like-minded countries

4. Seeking partnerships for building institutional capacity in Africa to deal with human settlements issues

2. Approach to International Co-operation, cont.

3 Overview of International Commitments of the Department of Human Settlements

• Angola -Memorandum of Understanding (MoU) on Co-operation in the field of Human Settlements, signed 2009

• China- Contract on implementation of the China-Assisted 170 Dwelling Unit Economical Housing project in Thaba Chweu, 2010

• Cuba- Agreement on Employment of Cuban Technical Advisors by relevant South African Provincial Departments of Housing, 2007

• Denmark- an Agreement for the Mainstreaming of Energy Efficiency in the Low Income Housing Sector in South Africa, 2005

3 Overview ( continued)• Democratic Republic of Congo- Co-operation in the field of

Human Settlements signed, February 2006 ( expired)

• India- Brazil- South Africa (IBSA)- a Memorandum of Understanding on co-operation in the field of Human Settlements, October 2008

• Netherlands- Arrangement on co-operation in the field of Social Rental Housing, extended June 2010

• YouthBuild International A Social Compact entered with and between the Department of Housing, Youth Build International and UMSOBOMVU Youth Fund, February 2008

Memorandum of Understanding with Cuba Benefits derived:• 53 Cuban Engineers and Architects working in 7 provinces in Phase 1, and

45 in phase 2• Contribution to PHP through development of manuals to guide

beneficiaries, assistance to PHP projects• Innovative housing designs adapted for local conditions and guidelines for

house designs in adverse environmental conditions• Training manuals for builders

Commitment required:• Provinces bear all costs related to Cuban Technical Advisors employed for

three year contracts• Resolve all issues related to the implementation of the Cuban Technical

Support programme• Manage the content of the programme through a national committee to

insist that the envisaged skills transfer takes place

Arrangement on Co-operation in the field of Social Rental Housing with the Netherlands

Benefits derived:• Over R1 billion in guarantees, loans and investments into the social housing

sector in South Africa• 4 long term technical advisors to assist in policy development and capacity

building• 4 short term advisors to assist on specialist tasks• Learning from the Dutch model and experience

Commitment required: • Prepare and Implement Annual Implementation Plans• Participate in the Annual Review meetings of the Co-operation Arrangement• Fund the in-country costs for short term technical advisors (e.g. accommodation,

transport)• Hold regular Oversight Committee meetings on implementation of annual

implementation plan

Memorandum of Understanding with Denmark

Benefit derived:• R 20 million for the energy-efficiency in low-income housing project on N2

Gateway project• Test a model for making energy-efficient improvements in low-income housing

which should greatly contribute to the improvement of beneficiaries’ quality of life

• Mainstream these approaches into low-income housing • Find innovative ways in which to finance energy-efficient improvements

Commitment required:• Project manage the implementation on N2 Joe Slovo phase 3, and mainstream

project findings into an energy-efficiency policy and programme in the department

• Jointly oversee the project with the donor through a Project Steering Committee• Deal with difficult implementation issues due to pilot project location and the

context of human settlement development in N2

Exchange of Notes on the China Assisted low-Income Housing project in Graskop

Benefit derived:• 170 low-income houses constructed “free” by Chinese government to be sold by

municipality as affordable housing. Proceeds to fund further low-income housing projects in Thabachweu Municipality

• Learning from Chinese construction techniques in terms of reducing waste, reducing errors, high quality construction for low cost

Commitment required:• Oversee project implementation as Thabachweu Municipality has failed to make

significant progress in the 10 years the agreement has been in place • Agree to reduce the number of units to be constructed from 400 to 170 for

housing project in Graskop to accommodate quality improvements and escalating input costs

• Facilitate visas and customs clearances for materials

Social Compact with YouthBuild InternationalBenefit derived:• Opportunity to pilot the Youth in Human Settlements programme with the

National Youth Development Agency, YouthBuild International (A US organisation funded by the US Dept. of Labor) and Habitat for Humanity in Gauteng

• 76 houses constructed by youth volunteers in Ivory park

Commitment required:Together with the partners of the social compact, Youth and Women Mobilisation unit in the Department to:

• Undertake activities to mobilise and train youth in construction and related skills

• Encourage further learning through completion of matric• Provide life skills support• Engender a spirit of community service and ubuntu • Roll-out model beyond Gauteng

Benefits derived:• Participate in international debate and obtain a finer more nuanced

understanding of human settlement issues that does not rely on North perspectives and expertise

• Participate in meaningful exchanges and learning with like-minded countries • Give practitioners and academics and community organisations the

opportunity for knowledge exchange and networking platforms• Build a South knowledge base to strengthen our voice in the decision making

on global resource allocation for human settlements

Commitment required:• Participate in Working Group meetings in accordance with the IBSA schedule of

meetings• Host seminars and meetings and undertake actions as determined by the work

plan of the Working Group

Memorandum of Understanding with India and Brazil under IBSA

Memorandum of Understanding with AngolaBenefit to be derived:• Support an earnest attempt to address human settlements

challenge in a fellow Southern African country• Providing opportunities for growth of South Africa’s

construction and property development sector

Commitment required:• Co-operate in human settlements policy development,

capacity building, technical knowledge exchange• Facilitate human settlements development in Angola• Manage co-operation through establishing a working group • Exchange visits, knowledge and expertise

United Nations Programme on Human SettlementsBenefit derived:• Translate international policy direction into South Africa’s human settlements

policy• Legitimacy, as we subscribe to UN Habitat norms and standards• Take advantage of knowledge and expertise on human settlements issues• Support for South-South initiatives such as AMCHUD and IBSA

Commitment required:• Annual voluntary contribution of US$ 45 000• Develop responses to draft resolutions• Negotiate resolutions• Oversee UN Habitat’s work through the Committee of Permanent

Representatives• Finance work programme of UN Habitat representative in South Africa

UN-HABITAT

African Ministers’ Conference on Housing and Urban DevelopmentCommitment Required:

• Support the Bureau in developing and implementing a work plan• Complete a body of work on monitoring African countries implementation

of AMCHUD decisions, establishing a permanent secretariat, obtaining sustainable funding for the organisation and developing a proposal for the establishment of a fund for slum upgrading

• R 5 million to support implementation of these activities

Benefit Derived:• Leading a process whereby Africa drives its own initiatives to deal with its

human settlements challenges as a component of development• Creating knowledge networks and promoting shared understanding• Supporting South Africa’s foreign policy while simultaneously contributing

to the achievement of the MDG

Honorary co-chair and Secretariat for AMCHUD

Member of the Cities Alliance and member of Cities Alliance Executive Committee

Benefit derived:• R 3.7 million in grant funding for various municipal and national projects• Expertise and support for the National (informal settlements) Upgrading

Support Programme• Access to expert and knowledge and learning networks• Opinion maker: Opportunity to significantly influence donors and institutions

on ways to meaningfully support urban development in developing countries

Commitment required:• US$ 50 000 annual contribution• Approve work programme and grant funding proposals • Exercise oversight over the governance of Cities Alliance• Provide knowledge, expertise and experience

Cities Alliance

4. Co-operation with Norway on Co-operative Housing

• Agreement entered into between South Africa and Norway in 1994 to pilot the co-operative model in South Africa

• Norwegian Federation of Co-operative Housing Associations (NBBL) was tasked with being the implementation partner on the Norwegian side

• Cope Affordable Housing was identified as the development partner in South Africa

• The co-operation proceeded over two phases from 1997 to 2001 and from 2001 to 2005

4. Co-operation with Norway on Co-operative Housing Main Achievements

• 1000 units developed• 7 Housing Co-operatives registered• Access to finance through a donation from NORAD

(Norwegian Aid Agency) of NOK 13.5 million /R17 million

• Initial work undertaken to develop a suitable legal framework for housing co-operatives

• Manual on standard documents and procedures developed for housing co-operative model

• Target beneficiaries: HH with R1200 – R3500 income, female-headed households especially targeted, monthly charges = ave 22% of HH income

4. Co-operation with Norway on Co-operative Housing Challenges

• Viability of co-operative model• Sustainability of Cope• Turn-around strategy attempted• 7 Cope members faced problems of financial and social

sustainability• Over reliance on donor funds• NGO origins led to difficulty in the transition to running as a

business• History of poor financial management, neglect of administrative

and financial systems• Donor environment changed, making access to donor funding

more difficult• Without substantial funding Cope could not become sustainable• Decision of the Board that Cope should be wound up – 2005/6

Thank You