In order to reduce the South African housing backlog the government has established a number of Social Housing Institutions but its social housing provision has still not lived up to its promises. While supply of social housing increased. The government is trying to close the gap between the supply and demand of social housing in South Africa and government policy has regarded the need for affordable housing as a material consideration for planning. The municipality does have housing problems such as affordability, overcrowding, poor quality housing, unsafe conditions and Planning authorities choose to allow additional developments in rural areas to provide affordable housing. In order to address these problems development of a low cost housing process should be introduced speedily to reduce housing shortages.
Public Involvement Programs (PIPs) that accommodate all role players in development are not fully understood and have contributed to an increase in the backlog of houses, especially in historically disadvantaged areas such as Mbashe. This study recognizes the fact that there are other areas in the Eastern Cape that lack housing developments, however this study concentrates on the Mbashe local municipality, and spans from the time of democratic elections in 1994 until 2008, specifically. The study provides a history of the area and problems that have led to a lack of housing development. It examines provincial, local and national government policies, which relates to housing. There are 3 also other interrelated problems that should be pointed out with regard to the issue of housing and land provision in rural and urban areas of South Africa, for example, the role of traditional leaders in rural areas, civic organizations and local councils in urban areas, which should be clarified.