Africa-Press – South-Africa. An affordable rental flats project, Ubuntu Terrace 1, has officially broken ground in Cape Town, marking a milestone in township housing development.
On Saturday, 28 March 2026, Sithembele Sidzumo and his team from Kaya Properties officially broke ground on Ubuntu Terrace 1, the first TUHF-funded project to receive approval for affordable rental flats (ARF) in Cape Town.
The City of Cape Town has been engaging with micro-developers and property owners who aspire to meet the demand for affordable rental housing.
“Ubuntu Terrace 1 is not just a development,” said Nomfundo Molemohi, who serves as a client coverage consultant to TUHF subsidiary uMaStandi for the Cape region.
“It’s a powerful example of what it means to build with purpose and impact. It points the way forward for other entrepreneurs to develop safe, compliant, sustainable, affordable housing solutions in Cape Town’s townships.”
Municipal by-laws, zoning requirements, and complex, slow processes have historically made it challenging for property entrepreneurs to obtain approvals and gain traction.
However, the City of Cape Town’s amendment to its Municipal Planning By-law, which came into effect on 1 September 2025, is showing its effectiveness.
This amendment was a big step towards unlocking the potential for affordable housing in the townships. The groundbreaking ceremony for Ubuntu Terrace 1, in particular, represents a watershed in township development.
“This journey started in 2020,” Molemohi said. “We wanted the City of Cape Town to recognise and support the township landlords who were already driving a quiet rental revolution.”
She explained that this project has been the product of years of back-and-forth discussions, expert input, and relentless advocating.
“We are proud of the role uMastandi played to find solutions and promote affordable housing developments that comply with City regulations,” Molemohi said.
Though not without its challenges, the approval process for Ubuntu Terrace 1 was streamlined through the newly established Local Planning Support (LPS) Office.
The LPS was formed to assist developers with navigating the approval process for ARFs and is staffed by professionals such as architects and quantity surveyors.
Collaboration between the LPS, TUHF’s uMaStandi team and Kaya Properties made the approval of this project possible.
“The lesson is that it is important to liaise with the LPS team to ensure the process is correctly followed,” Molemohi explained.
“Working with the LPS also ensures the revised by-laws are correctly interpreted by both the professional team and the property entrepreneur.”
Paving the way for affordable property growth
City officials, including Deputy Mayor of Cape Town Eddie Andrews, and the TUHF team were present at the groundbreaking ceremony to support Sithembele and his team.
Molemohi believes that, now that it is simpler to comply with city by-laws and quicker to achieve plan approvals, more entrepreneurs are likely to come forward to invest in township property developments.
“Ubuntu Terrace 1 not only creates housing where it is most needed, but also creates opportunities, dignity and real change in the community,” she said.
“This milestone is just the beginning for Kaya Properties and township property entrepreneurs in general.”
TUHF has already approved funding for two additional phases of Ubuntu Terrace. The three developments combined will create a safe, well-maintained precinct.
It will not only provide decent, affordable rental housing but also stimulate the local economy and uplift the neighbourhood and community.
Developments like the planned Ubuntu Terrace precinct have a positive impact on property values and ultimately enable families to build generational wealth from properties that could otherwise be considered dead equity, Molemohi said.
“I’m excited to see the construction of Ubuntu Terrace unfold and to walk this journey with Sithembele and his team,” she said.
“Acknowledging the importance of compliance and taking the necessary steps to meet the guidelines is what makes quality property development in the townships.”
She added that TUHF is ready to support entrepreneurs as they set out on their journeys to build successful property businesses.
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