On Saturday, 28 March 2026, Sithembele Sidzumo and his team from Kaya Properties officially broke ground on Ubuntu Terrace 1. This is the first TUHF funded project to receive Affordable Rental Flats (ARF) approval in Cape Town, where 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, TUHF (uMaStandi) Client Coverage Consultant, 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.”
The groundbreaking ceremony for Ubuntu Terrace 1 is particularly significant as it represents a watershed in township development. Though municipal by-laws, zoning requirements and complex, slow processes historically made it challenging for property entrepreneurs to receive approvals and gain traction, the City of Cape Town's amendment to its Municipal Planning By-law is showing its effectiveness. The amendment came into effect on 1 September 2025 and was a big step towards unlocking affordable housing potential in the townships.
“This journey started in 2020,” Nomfundo says. “We wanted the City of Cape Town to recognise and support the township landlords who were already driving a quiet rental revolution. After years of back-and-forth discussions, expert input, and relentless advocating throughout the process, we are proud of the role uMastandi played to find solutions and promote affordable housing developments that comply with City regulations.”
Though not without its challenges, the approval process for Ubuntu Terrace 1 was smoothed by working through the newly established Local Planning Support (LPS) Office. Formed to assist developers with navigating the approval process for ARFs – and staffed by professionals such as architects and quantity surveyors – collaboration between the LPS, TUHF’s uMaStandi team and Kaya Properties made this project’s approval possible.
“The lesson is that it is important to liaise with the LPS team to ensure the process is correctly followed,” Nomfundo explains. “Working with the LPS also ensures the revised by-laws are correctly interpreted by both the professional team and the property entrepreneur.”
The first of many
City officials, including the Deputy Major of Cape Town, as well as the team from TUHF were present at the ground-breaking ceremony to support Sithembele and his team. Nomfundo 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,” Nomfundo says. “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 that not only provides decent affordable rental housing but stimulates the local economy and uplifts the neighbourhood and community. Compliant, sustainable developments like the planned Ubuntu Terrace precinct have a positive impact on property values, ultimately enabling families to build generational wealth from properties that could otherwise be considered dead equity.
“I’m excited to see the construction of Ubuntu Terrace unfold and to walk this journey with Sithembele and his team,” Nomfundo says. “Acknowledging the importance of compliance and taking the necessary steps to meet the guidelines is what makes quality property development in the townships. TUHF is ready to support entrepreneurs as they set out on their journeys to build successful property businesses.”