Looking back on 2024
In 2024, South Africa witnessed the formation of an unprecedented Government of National Unity (GNU) after the national elections in May. The African National Congress (ANC) lost its parliamentary majority for the first time since 1994, securing only 40% of the vote. This political shift led President Cyril Ramaphosa to form a coalition with several parties, including the Democratic Alliance (DA) and the Inkatha Freedom Party (IFP). The aim was to ensure political stability and focus on pressing issues such as economic reform, poverty alleviation, and addressing corruption.
Overall, while the GNU is a promising step toward addressing South Africa’s challenges, its long-term success will depend on sustained collaboration, effective policy implementation and responsiveness to the needs of the population.
We anticipate that the GNU will promote stability within the property sector, paving the way for sustainable growth.
Municipalities in South Africa play a critical role in the property sector, as they are the primary agents for service delivery and local development. However, many face challenges that undermine their effectiveness, including financial mismanagement, corruption and a lack of technical capacity. Auditor-General reports consistently highlight poor financial controls in several municipalities, with a significant number failing to submit proper financial statements or achieve clean audits. Persistent issues such as water shortages, inadequate housing, and crumbling infrastructure contribute to service delivery protests, reflecting growing frustration among residents.
On the positive side, some municipalities have implemented innovative solutions to address local challenges, including renewable energy projects and improved waste management systems. Collaborations between local governments and private stakeholders have also shown promise in driving urban development. Nevertheless, systemic reforms, better oversight and skilled leadership are essential for municipalities to fulfil their mandate and meet the needs of South African communities effectively.