Participants at the inaugural township rental dialogue, held on 25th November in Johannesburg, urged government and other stakeholders to better support developers of small-scale rental housing. [Johannesburg, 26th November 2025]
Township rental markets are thriving in many South African cities and towns, despite the glaring absence of public sector support. Every month, thousands of homeowners and entrepreneurial micro-developers build affordable rental accommodation to meet the needs of a fast-growing urban population and to help tackle to housing backlog. While the township property boom presents new possibilities for inclusive cities and economic development, it also poses challenges around safety, infrastructure overload, tenant rights and sustainable neighbourhoods.
To respond to these challenges and opportunities, the Development Action Group, PlanAct and the NRF Chair in City-Region Economies at the University of the Free State convened a Township Rental Dialogue on 25th November at the Parktonian Hotel in Johannesburg, followed by a Small-Scale Rental Housing Construction Expo hosted at PlanAct’s offices on the 26th of November. The public dialogue brought together more than 60 actors from government, the private sector, financial institutions, civil society and academia to explore how township rental markets can better contribute to inclusive growth and vibrant cities.
The event was officially opened by Mr Zama Mgwatyu from the Development Action Group, who emphasised the urgent need for action to support the growth and gradual formalisation of the sector. He stressed that government can no longer postpone critical actions because people are building regardless. Government must acknowledge, engage, collaborate and lead in shaping rental markets to maximise the contribution to township economic and social development. He challenged participants to not just articulate the challenges but “to get their hands dirty and co-create solutions as everyone has a role to play in strengthening the sector”.
His opening remarks were followed by a keynote address from Prof Ivan Turok, NRF Chair in City-Region Economies at the University of the Free State. Prof Turok highlighted the enormous significance of township rental markets to housing and economic development in South African cities, discussed the key trends and transformations underway in the sector, and called for urban partnerships to work together in addressing the obstacles to progress. Drawing on recent reforms and support initiatives in the City of Cape Town, he reflected on what has been achieved to date, the limitations of current approaches, and what more needs to be done. According to Prof Turok, “we need a stronger, more compelling vision for the sector to convince politicians, government and financial institutions to take it more seriously”.
The keynote set the scene for three panel discussions featuring experienced practitioners from all sectors of society:
- “What is holding back the pace of reform, and how can these obstacles be overcome?”
This session included representatives from the Gauteng Township Developers Forum, City of Ekurhuleni, Cities Support Programme of the National Treasury, Development Action Group and University of the Witwatersrand. Panellists discussed the achievements of different stakeholders and unpacked the key internal and external barriers slowing down governance reforms, including misaligned policy frameworks and regulations, resource constraints and limited political will. - “How can government and civil society better support the sector?”
Panellists from the National Department of Human Settlements, City of Johannesburg, Western Cape Township Developers Forum and PlanAct built on this discussion and elaborated further on the most important reform and support initiatives that are underway in the sector. Participants were encouraged to hear about recent developments at national and local government levels, as well as the important role civil society actors play in building trust, advocating for change, improving grassroots capacity and co-designing solutions. - “How can we mobilise affordable finance for the sector?”
In the third panel discussion, representatives from two commercial banks and two housing micro-finance institutions reported on their recent innovations for the small-scale rental sector and deliberated on the challenges and opportunities for expanding access to affordable finance. The session emphasised the important role of intermediary bodies and the need for better evidence to reduce the risks to lenders and to make the market more legible to financial institutions.
In the concluding session, Prof Turok synthesised the main insights from the event and highlighted three priority actions going forward:
- Create a more supportive and enabling policy and regulatory environment for homeowners and micro-developers. Co-develop appropriate planning and building control regulations, norms and standards, and streamline administrative procedures to promote compliance. Linked to this is the urgent need for title deed reforms and alternative ways of recognising tenure.
- Identify new ways of funding infrastructure investments in rapidly densifying neighbourhoods. We urgently need innovative financing models blending public and private capital to improve public spaces, amenities and bulk infrastructure provision in townships, especially those where rental markets are growing.
- Strengthen civil society initiatives to increase capacity, technical skills and knowledge among homeowners and developers in the sector. Mobilise new technologies and innovative social engagement practices to reach developers. Support township developers in establishing forums to organise and collectively engage with government and other stakeholders.
Participants welcomed the dialogue as an important platform to share experiences, learn from each other and identify practical interventions. Many emphasised the value of bringing together voices from different spheres of government, the private sector and civil society to build a shared agenda for township rental reform.
A recording of the event is available on Planact’s YouTube channel:
A brief summary report of the dialogue and expo will be made available on https://www.planact.org.za/
For media inquiries, please contact:
Zama Mwatyu, Programme Manager, Development Action Group (DAG) zama@dag.org.za|073 754 3698
Chelsea Ndlovu, Information and Resources Coordinator, Planact – chelsean@planact.org.za | 071 938 0577
Prof Ivan Turok, NRF Chair in City-Region Economies at the University of the Free State [Turok@hsrc.ac.za | 079 668 4120