Is it working?

Since Operation Vulindlela 2.0 was only launched in May 2025, it's too early to assess efficacy on this reform area. However, there are some promising signs, such as Cape Town's reforms enabling formal small-scale rental housing. While this reform area has potential for significant impact, it faces systemic barriers especially at the municipal level. Current regulatory regimes have fostered informality, with the majority of small-scale developments being non-compliant. There is an absence of protocols and systems to strengthen coordination between metros and provinces as well as a coherent framework that support metro projects across the project lifecycle. This contributes to significant planning approval delays, with some awaiting approval for over a decade. These systemic gaps would take a long time to address and require sustained political commitment across multiple electoral cycles, substantial institutional capacity building at municipal level and coordinated legislative reform spanning national, provincial and local government spheres.

Actions

Operation Vulindlela phase 2’s latest progress report confirms completion of a national review of laws, policies and regulations across all spheres of government to identify reforms that reduce development costs in urban areas. The goal is to support affordable housing, promote densification and accelerate the release of public land and buildings for housing development.

Key reforms are already under way. Amendments to the National Building Regulations Act have restored municipal autonomy over appeals and by-law approvals, aligning the framework with the Spatial Planning and Land Use Management Act (SPLUMA). The Department of Human Settlements’ 2024 White Paper, approved by Cabinet in January 2025, establishes the policy base for reform, including an Inclusionary Housing Policy requiring developer contributions to affordable housing.

At municipal level, Cape Town has led by granting automatic use rights for affordable rental flats in designated zones, removing lengthy land-use approvals. The city introduced a new land-use right permitting affordable rental flats (up to eight units with a dwelling house, or 12 units without) in 194 designated areas, primarily former townships. The by-law came into effect 1 September 2025 and includes support measures: pre-approved building plans, development charge discounts, and utility discounts for social housing. Other metros have introduced development charge exemptions for serviced subsidised projects. Operation Vulindlela is coordinating these regulatory reforms, with the Cities Support Programme managing technical support procurement.

Are there plans?

Yes, with Operation Vulindlela 2.0 and the 2024 White Paper for Human Settlements providing the core policy frameworks. These initiatives aim to streamline zoning, land use and building regulations that currently make low-cost development in well-located areas costly or unviable. Cape Town has taken the lead at municipal level with draft by-law amendments that support higher-density affordable rental development.

Is it on the agenda?

Included in Operation Vulindlela 2.0 and the DHS' White Paper for Human Settlements. President Ramaphosa specifically committed in the 2025 Sona to "review land use, building and other regulations to enable low-cost property development, including backyard housing".

Goals

This reform aims to modernise South Africa’s housing regulations to lower development costs, streamline approvals and attract private investment in affordable housing. It targets the regulatory barriers that make such housing financially unviable, particularly for small-scale developers facing high compliance costs.

References

• Reference Link One

Departments / Govt Institutions

Department of Human settlements Department of Public Works and Infrastructure National Treasury The Presidency