Sandton: Human Settlements Minister Thembi Simelane emphasized the significance of investing in formal housing and transforming informal settlements as pivotal to infrastructure development and economic growth during the Urban 20 (U20) Mayors Summit.
According to South African Government News Agency, Simelane addressed the summit, which aims to enhance engagement between the G20 and cities and elevate urban issues on the G20 agenda. The U20 provides a platform for cities to develop a collective message to inform G20 negotiations. During a panel discussion on ‘Local Economies as Engines of Inclusive Development: A New Vision for Governance and Informality through Equitable Climate Action and Public Service Provision,’ Simelane urged a shift in how investors and financial institutions view informality, recognizing its economic potential.
Simelane highlighted that investments in township economies contribute to economic growth, with potential benefits such as job creation and improved living standards. She warned against the financial exclusion of informal enterprises, which hampers growth and innovation, leaving many unable to scale or compete with formal businesses. She advocated for addressing these barriers through micro-investment ecosystems to unlock sustainable township economic development and inclusion in national growth.
To advance local economic development and address informality in cities, Simelane pointed to the 2024 White Paper for Human Settlements, which supports developmental interventions. These include infrastructure projects targeting areas with Transit-Oriented Development, transforming townships into sustainable human settlements, and eliminating spatial monotony to improve living environments and unlock the township residential property market.
Simelane also called on municipalities to shape their economies proactively, involving inclusive stakeholder participation in developing strategic plans like integrated development models. She noted that municipalities continue to face economic and spatial disparities, rooted in historical injustices linked to apartheid and geographical realities. Despite these challenges, cities must take initiatives to share economic benefits with their residents, as outlined in the Constitution.
Simelane emphasized that cities should connect people not only for employment but also for opportunities in housing, better living conditions, skills development, and entrepreneurial endeavours to promote and protect their human potential.