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DRIVING CHANGE - HOW THE SOCIAL HOUSING REGULATORY AUTHORITY (SHRA) IS SHAPING THE FUTURE OF AFFORDABLE HOUSING IN SOUTH AFRICA
In a year of economic uncertainty and mounting social challenges, the Social Housing Regulatory Authority (SHRA) emerged resiliently. With a clear focus on governance, delivery,
and impact. SHRA not only achieved a clean audit for the first time since its inception but also delivered thousands of affordable housing units - driving both economic participation and social transformation across the country.
Lebowa Letsoalo, Acting CEO of SHRA, describes the year as a turning point, explaining that the clean audit signals more than financial compliance, it reflects an organisation ready to lead, innovate, and build a future where affordable housing transforms lives, “Our success is a story of resilience, collaboration, and commitment to South Africa’s people.”
SHRA’s achievement of a clean audit, an unqualified report with no material findings, highlights the organisation’s rigorous financial controls, accountability, and strategic decisionmaking. At a time when trust in public entities is often under scrutiny, this
milestone reinforces SHRA’s ability to manage public funds with integrity. “The clean audit wasn’t achieved by accident,” Letsoalo says. “It’s the result of strong leadership, capable teams, and a focus on delivering value for every rand we invest. Trust is a valuable currency, and this milestone proves we’re managing it wisely.”
"Every unit we deliver brings more than just shelter. It creates opportunities for families to access jobs, education, and healthcare while reducing travel costs." – Lebowa Letsoalo, Acting CEO of SHRA
The SHRA’s progress demonstrates a tangible contribution to affordable housing delivery. With South Africa’s housing backlog hovering at approximately 2.4 million units, the demand for affordable rental homes remains urgent. Over the past financial year, SHRA delivered 3,066 social housing units, a number that, while just shy of the annual target of 3,200, represents steady upward momentum. This achievement brings the total number of units delivered over the past five years to 13,900, underscoring SHRA’s consistent progress in addressing housing needs for lowto middle-income families. Equally promising is the social housing pipeline, which currently consists of 72 active projects that will deliver more than 36,000 units. This investment is valued at approximately R15 billion.
“Every unit we deliver brings more than just shelter,” Letsoalo explains. “It creates opportunities for families to access jobs, education, and healthcare while reducing travel costs. This is how we address spatial inequality and unlock economic potential for South Africans.”
Beyond housing delivery, the SHRA’s initiatives are driving meaningful transformation. In the past year, the organisation directed 41% of its procurement spend, amounting to approximately R16 million, to femaleowned enterprises. This targeted spend signals SHRA’s commitment to economic inclusion and empowerment while ensuring Social Housing Institutions (SHIs), who are the key delivery agents, receive the support they need to remain sustainable.
However, challenges persist. Rental boycotts, project high jackings, delayed approvals, and the emergence of construction mafias (criminal groups extorting developers and disrupting project timelines) add a dynamic of complexity to delivery efforts. SHRA has responded by strengthening collaboration with stakeholders, enhancing oversight, and pursuing innovative funding models to protect public investments.
“We cannot ignore the challenges, but we also cannot let them define the future of the sector,” Letsoalo asserts. “Innovation and partnerships are our weapons against disruption. We’re working with municipalities, private sector funders, and government agencies to create sustainable solutions that deliver results.”
The economic impact of SHRA’s work also deserves attention. Social housing projects serve as economic engines, stimulating local economies, creating employment opportunities, and supporting small businesses. In the past year alone, SHRA supported projects created 9,516 jobs, demonstrating how investments in housing ripple across communities. This aligns with South Africa’s Economic Reconstruction and Recovery Plan (ERRP), which identifies infrastructure development as a key driver of economic revival.
Looking to the future, SHRA remains focused on accelerating delivery, expanding the housing pipeline, and enhancing governance. With over R7.9 billion already contracted for ongoing projects and additional investments secured, the organisation is positioned to address backlogs while fostering urban transformation. Sustainability will remain a guiding principle. Rising utility costs and broader economic pressures demand innovative approaches to ensure that social housing remains a viable, affordable solution for years to come. Letsoalo emphasised that SHRA will continue to think differently, exploring new funding models and forging strategic partnerships to protect affordability for tenants.
The SHRA’s achievements reflect a broader story of leadership, accountability, and resilience. The clean audit, housing delivery milestones, and focus on transformation affirm its role as a trusted steward of public investment and a driver of change in South Africa’s social housing landscape. “Our work is far from done,” Letsoalo concludes. “But we’ve proven that with strong governance, focused execution, and collaboration, we can deliver housing solutions that change lives. This year has laid a foundation for an even brighter future.”
