Micro developers in Cape Town’s townships are ready and motivated to build solutions to the pressing demand for affordable housing. Until recently, municipal by-laws, zoning requirements and complex, slow processes have posed significant challenges. This has made development slow or simply led to developments that don’t comply with regulations – a risk to property owners and their tenants.
uMaStandi, TUHF’s specialised finance vehicle for property entrepreneurs in townships, has long been a vocal advocate for policy change to ease the red-tape burden and empower aspiring property entrepreneurs to rise to meet the demand for affordable rental housing. The City of Cape Town's amendment to its Municipal Planning By-law, which was announced in July 2025, is a big step towards unlocking affordable housing potential in the townships.
“This journey started in 2020,” says Nomfundo Molemohi, Western Cape Portfolio Manager, uMaStandi. “We wanted the City of Cape Town to recognise and support the township landlords who were already driving a quiet rental revolution - and we have continued to engage with the City on our clients’ behalf to find solutions that would promote affordable housing developments that comply with City regulations.”
After years of back-and-forth discussions, expert input, and relentless behind-the-scenes work with uMaStandi Portfolio Managers actively pushing and advocating throughout the process, this approval of the Municipal Planning By-law amendment is a major breakthrough. Officially gazetted on 8 August, the Municipal Planning By-law amendment will come into effect on 1 September 2025.
Nomfundo explains: “In many township areas, the current zoning is SR1 or SR2, which only allows up to three dwellings per plot. If a landlord wanted to build more, they would have to go through a long, technical and costly rezoning process. It has been a real barrier for landlords and micro developers. But with the new Municipal By-law amendment, landlords and aspiring micro developers will be able to submit building plans for 8 to 12 units depending on the plot size without having to rezone. This saves time, cuts out expensive professional fees, and helps get affordable housing into the market much quicker.
To help small-scale developers navigate the process more easily, the City of Cape Town has also developed prototypical building plans for bachelor and one-bedroom units; ready-made designs that meet regulatory standards. These plans will help fast-track building approvals, reduce the need for costly professional services, and cut down on delays. It is a practical tool that makes compliance more affordable and accessible, especially for emerging landlords and micro developers.
For uMaStandi, ensuring that the projects it finances are fully compliant has always been a top priority and these plans are a welcome support in achieving and sustaining that.
“We work with our clients to make sure their developments are compliant, but until now the process had been slow and challenging,” says Nomfundo. “The availability of pre-approved prototypical building plans opens the door and will create significant opportunities for new rental developments. And just as importantly, it also creates an opportunity for existing landlords who simply opted out of meeting compliance requirements to now formalise and regularise their developments.”
This matters because compliant properties have higher values and can even be leveraged to unlock refinancing. “Our core mission at uMaStandi is to drive real development impact by helping our clients unlock dead equity in township property and build generational wealth. The fast-tracking of approvals and reduction in professional fees represents a powerful shift that will transform Cape Town’s landscape, particularly in historically excluded areas and a win for both micro developers and the broader housing sector," she says.
Township residents, too, can only benefit from these regulatory changes as demand for decent, affordable rental housing is pressing. uMaStandi has financed 134 units across several micro developments so far, and all are fully tenanted with waiting lists. “Our clients are ready and willing to develop more projects,” Nomfundo says. “The by-law amendments will allow up-and-coming developers, who have been eager to get building, to step forward and make an impact.”
For uMaStandi, it’s about more than simply building new developments. “Our clients are aspiring property entrepreneurs, who want to build successful affordable rental housing businesses. So, we provide formal training and hands on mentorship to support our clients every step of the way; on everything from securing plan approvals to registering companies to sustainability.”
Landlords and micro developers will also benefit from the TUHF Programme for Property Entrepreneurship (TPPE): a comprehensive training programme in partnership with the University of Cape Town. This certified programme empowers entrepreneurs - clients and non-clients alike - with the tools to succeed in property.
Most uMaStandi projects incorporate water and energy efficiency measures, as well as backup systems like solar power installations or JoJo tanks for rainwater harvesting, to alleviate dependence on municipal services. Self-contained units with their own ablution facilities, Wi-Fi, security and on-site laundromats are just some of the other features that make uMaStandi funded projects attractive to township residents.
“We are proud of the fact that, through our engagement with the Mayor and City of Cape Town officials, our clients’ voices have been heard and the barriers preventing them from investing more in the townships they live in – and love – have been eased,” says Nomfundo. “We’re looking forward to supporting micro developers as they develop safe, compliant, sustainable affordable housing solutions much more quickly than ever before.”