Western Cape Infrastructure MEC Tables R9.86 Billion Budget to Tackle Rising Housing Demand and Accelerate Urban Land Reform

MEC Tertuis Simmers announces R2 billion for Western Cape housing projects including Welmoed and Ithemba. Read about inner-city land reform plans here.

By: AXL Media

Published: Mar 25, 2026, 6:31 AM EDT

Source: The information in this article was sourced from Eyewitness News

A Fiscal Push for Provincial Expansion

The Western Cape government is preparing for a significant scaling up of its housing and infrastructure capabilities. On Tuesday, March 24, 2026, MEC for Infrastructure Tertuis Simmers tabled a R9.86 billion budget for the upcoming 2026/2027 financial year. A critical pillar of this budget is the allocation of more than R2 billion to the Human Settlements Department, a move designed to address the province's burgeoning population growth and the resulting strain on the housing market. Simmers framed the budget as a commitment to "the acceleration of dignity and opportunity," signaling a shift toward more aggressive legislative reforms to streamline delivery.

Large-Scale Developments: Welmoed and Ithemba

Central to the MEC’s announcement are two flagship projects intended to provide thousands of new homes. The Welmoed development, situated near Stellenbosch, is currently under construction and is slated to provide over 10,000 housing units upon completion. Meanwhile, the Ithemba Project in Eerste Rivier is expected to deliver approximately 2,400 housing opportunities. Unlike traditional housing projects, these developments are being planned as integrated communities, featuring dedicated spaces for services and community facilities to ensure long-term social sustainability.

Unlocking the Inner City

In a strategic move to combat the legacy of spatial apartheid, Simmers highlighted the province’s efforts to unlock high-value land within the Cape Town city center. Projects at Prestwich, Leeuloop, and Founders Garden are specifically aimed at creating affordable housing in close proximity to major transport hubs and economic centers. By bringing residents closer to jobs, the provincial government hopes to reduce the financial and logistical burden of long commutes, though these projects have faced intense scrutiny from activists calling for faster implementation.