The University of the Free State (UFS), in partnership with the Development Action Group (DAG) and Planact, has taken a leading role in shaping South Africa’s urban future by convening partners, practitioners, and policymakers to unlock the potential of township rental markets as engines of inclusive growth.
This one-day Public Dialogue and Learning Exchange brough together key actors from government, the private sector, academia, financial institutions, civil society, and property developers to explore how township rental markets can contribute to building more inclusive and vibrant cities.
Scale and significance of township rental activity
Township rental markets are expanding rapidly as homeowners and micro-developers respond to rising urban housing demand. This growth holds significant promise for improving livelihoods, stimulating local economies, and strengthening neighbourhoods – but it also presents challenges around regulation, infrastructure, safety, and tenant protection. Recognising these complexities, the UFS has helped organise and convene the dialogue around how collaborative solutions can build more equitable, sustainable communities.
In his keynote address, Prof Turok – NRF Chair in City-Region Economies at the UFS – set the strategic tone for the event. He highlighted the scale and significance of township rental activity and emphasised the need for partnerships that combine research, policy reform, and community-driven innovation.
Drawing on recent insights from UFS-led research and reforms underway in Cape Town, Prof Turok underscored that “a stronger, more compelling vision for the sector is essential to mobilise political will and unlock investment”.
Three panel discussions expanded on this call to action, bringing together practitioners from government, civil society, financial institutions, and academia. Prof Scheba facilitated the session on strengthening support systems for micro-developers and homeowners – an area where evidence, trust-building, and community-level engagement are crucial. Participants highlighted promising reforms at national and local government levels and stressed the importance of civil society organisations in bridging gaps between communities and institutions.
According to Prof Scheba, “policy reforms across different spheres of government are encouraging, but we need more meaningful spaces for citizens to engage if we are to truly co-create solutions”.
Financial inclusion emerged as another priority. Representatives from commercial banks and housing micro-finance institutions shared new approaches to expanding access to affordable finance, emphasising the need for better data, reduced lending risk, and intermediaries that can connect township developers to formal financial ecosystems.
Zama Mgwatyu from DAG 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 said.
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”.
An important platform
In his closing remarks, Prof Turok identified three urgent actions that can accelerate progress, including creating a more enabling regulatory environment through clearer building standards, streamlined planning procedures, and tenure reforms that support compliance and safety.
“Another urgent action is innovation in infrastructure financing to ensure that rapidly densifying neighbourhoods gain access to reliable services, amenities, and public space upgrades. We also need to invest in capacity-building for township developers, drawing on new technologies, peer networks, and civil society partnerships to strengthen local skills and knowledge,” he concluded.
Participants welcomed the dialogue as an important platform for breaking silos, aligning priorities, and building a shared roadmap for township rental reform. The event demonstrated the role that the UFS plays, not only as a research institution, but also as a convenor that brings diverse voices together to co-create practical, inclusive solutions for South Africa’s cities.