The Importance of Good Governance in South Africa’s Growing Community Schemes

Community housing schemes are becoming increasingly popular worldwide, offering residents a sense of security, convenience, and belonging. South Africa has seen rapid growth in this industry and is now estimated to have over 70,000 community schemes, contributing significantly to the nation’s economy and job creation. Therefore, good governance is critical to ensuring the continued success of these schemes.

The Diversity of Community Schemes in South Africa

Community schemes include various residential arrangements, such as high-rise buildings, townhouse complexes, gated villages, and housing for retired persons. Different associations like body corporates, share block companies, and homeowners’ associations manage these properties. Due to South Africa’s diverse population, community scheme governance must address challenges related to cultural, religious, and linguistic differences among residents.

The Importance of Inclusive Governance

The Community Schemes Ombud Service (CSOS) hosted an inaugural indaba to promote good governance and strengthen the administration of community schemes while providing education to occupiers. The constitution of South Africa supports the right of individuals to enjoy their culture, practice their religion, and use their language. Therefore, inclusive governance is necessary to reduce conflicts and disputes related to cultural diversity.

Factors Contributing to the Growth of Community Schemes

The rapid growth of community schemes in South Africa can be attributed to factors such as urban migration, scarcity of land, security concerns, and affordability. The rising Black middle class is also increasingly opting for community scheme living. Additionally, community schemes contribute significantly to the total value of residential property in the country.

The Role of Community Schemes in Job Creation

The services required by community schemes are significant contributors to job creation, mainly sourced from small and medium enterprises (SMEs). However, the sector needs transformation to be more inclusive and provide opportunities for emerging Black SMEs. Transparency and fair procurement practices must be implemented to ensure market access to new players and avoid favoritism or nepotism.

The Role of CSOS in Promoting Good Governance in Community Schemes

The Community Schemes Ombud Service (CSOS) is mandated to promote good governance, provide dispute resolution services, and raise awareness about community schemes’ rights and obligations. The organization is working to improve its services, communicate its existence and mandate more effectively, and expand its footprint across the country.

The Importance of the Inaugural CSOS Indaba

The inaugural CSOS indaba is a timely event addressing the critical issues facing community schemes in South Africa. Topics discussed during the indaba include accelerating transformation in the sector, reducing disputes through efficient governance, compliance with the Protection of Personal Information (POPI) Act, and improving CSOS services.

Community schemes play a vital role in providing affordable housing with social and economic benefits to South Africans. To ensure the continued success of this industry, stakeholders must prioritize good governance, transparency, and inclusivity to maintain harmony, security, and social cohesion within these residential communities.