Recently, the author joined dozens of thousands of Johannesburg residents in a public march through the city streets with a close companion. During the walk, they visited areas they usually do not frequent and saw the streets where taxis and buses transport passengers from remote settlements to Gandhi Square and other transport hubs.
The fate of Johannesburg was sealed in February 1886 when George Harrison, an Australian prospector working as a builder, discovered gold ore on Langlaagte farm. This discovery initiated the exploitation of what was then the world's largest gold-mining district and contributed to the growth of Johannesburg. The author noted that the city's name likely derives from two officials of the time named Johannes, and the suffix 'burg' means city or fort in Dutch, which, in the author's opinion, is not an inspiring history.
The gold rush caused mass migration of people seeking fortune, while workers from neighboring South African countries agreed to work in harsh conditions in the mines. Hugh Masekela's song 'Stimela' vividly conveys the train journey, the living conditions of workers in mine hostels, as well as the pain of separation from families and homes. The movement of these and other Black people from rural areas of South Africa was regulated by the pass law, which ensured the white population's control over the core of Johannesburg. These political decisions were reflected in the forced relocation of 65,000 Black, Coloured, Indian, and Chinese residents of Sophiatown, located near the city center, to segregated settlements like Soweto, Eldorado Park, and Lenasia on the outskirts, which the apartheid government renamed 'Triumph' in Afrikaans.
Johannesburg is a major economic hub, accounting for 16% of the country's GDP and providing 12% of the workforce. It hosts over 70% of corporate headquarters, including the Johannesburg Stock Exchange, which ranks among the top 20 globally by market capitalization. The city is literally and figuratively a place of gold, as local languages call it—Egoali in isiZulu and Gauteng in Sesotho. The city covers an area of 2300 km², comparable to Los Angeles. It is the only major city in the world that was not founded near a significant water source. A large part of its water supply comes from the Lesotho highlands, located more than 500 km to the south, via the Vaal Dam. The city's population ranges from six to twelve million people depending on the boundaries used for this urban cluster, most of whom appear to be under forty years old.
The author admits that he moved to the city to study at Wits University during the latter years of formal apartheid and remained there. He found friends among other internal migrants from KwaZulu-Natal and the Western Cape, believing they comforted each other as foreigners in their adopted city. While acknowledging that some local residents took time for them, the author notes that such people were not very numerous.
The author believes that Johannesburg deeply affects a person. Although it is far from a beautiful city, it possesses a special energy that makes it an interesting place to live. The city gave the author a career and the opportunity to meet the most interesting people, shaped his political consciousness, and gifted him music and culture, while also causing him pain several times.
The author regrets the decay he observed in several areas during the walk, as well as the politicians who fight for gain while trash piles up on the sidewalks. Nevertheless, this city always instills in him hope for something better. He understands why people continue to migrate here despite the risk of encountering xenophobic outbreaks, crime, and displacement. During the walk, one of the huge trucks for ore dumping carried a banner inscribed with 'Building the Jozi of our dreams.' The author hopes this will happen and that the city will regain the energy and excitement of this African melting pot.
Financial security through housing goes beyond simply providing loans; essentially, it is aimed at building the middle class. South Africa requires housing finance models capable of balancing prudent risk management with the national goal of expanding economic inclusivity.
RB Property Group noted that while risk-based pricing plays a vital role in responsible lending, it must consider not only past financial failures but also positive financial behavior. The company argues that if the local financial sector helps more South Africans become successful homeowners, it will lead to growth not only in the real estate market but in society as a whole.
RB Property Group emphasized that its article 'Reimagining Housing Finance in South Africa: Why Risk-Based Pricing Alone Cannot Build an Inclusive Economy' is not a criticism of the South African banking sector, which remains one of the strongest and most respected in the world. Instead, the company calls for innovation, pointing out that South Africa possesses one of the most developed banking systems in the developing world, valued for its prudence, sound regulation, and adequate capital.
One of the foundations of modern banking is risk-based pricing: clients with excellent credit histories are offered lower interest rates, while borrowers presenting higher credit risk pay higher rates. From a financial risk perspective, this approach seems logical and fair. However, when viewed through the lens of economic development, financial inclusion, and social mobility, a question arises: does increasing interest rates for financially vulnerable households truly reduce risk, or does it unintentionally create additional risks?
The company believes it is time to review whether the current model leads to the long-term outcomes that South Africa urgently needs. The paradox is that banks reward clients with good credit histories with preferential rates, while clients with poor histories often bear significantly higher borrowing costs. This occurs due to a higher assumed probability of default, the need for greater capital allocation by banks, increased credit losses, and rising administrative expenses.
Although this is understandable from a banking perspective, the group notes a significant paradox: a client who is already experiencing financial difficulties is forced to pay higher monthly payments, more interest over the life of the loan, and carries a significantly larger debt burden compared to a more financially stable borrower. Instead of helping people recover financially, the system often hinders this process.
An example shows that a first-time homebuyer with an excellent credit score receives a rate 10% lower on payments, whereas a borrower with poor credit faces a 14% increase in payments. The borrower with a weaker financial standing now faces increased monthly payments, reduced disposable income, less ability to absorb financial shocks, a higher probability of delinquency, and an increased likelihood of default. RB Property Group points out that the pricing mechanism designed to compensate for risk can itself contribute to additional stress during repayment.
The company clarifies that this does not mean every low-credit-score borrower will default. Rather, it suggests that substantially higher borrowing costs can intensify pressure on households already in a vulnerable financial position. RB Property Group acknowledges that the credit score is important, but it 'largely reflects the past.' Many South Africans have experienced layoffs, income loss due to Covid-19, divorces, medical emergencies, business closures, and temporary unemployment, and are now rebuilding their financial lives. The company insists that a client who has responsibly rebuilt their credit profile over two years should be viewed differently from one who continues to exhibit poor repayment behavior, because 'financial recovery deserves recognition.'
RB Property Group emphasizes that housing finance is not just about dispensing money; it is about building the middle class. Countries with large and growing middle classes typically demonstrate higher domestic demand, as middle-income households spend money across a wide range of sectors. The middle class invests in housing, education, healthcare, vehicles, insurance, telecommunications, retail, financial services, as well as savings and investments. Every new middle-class family stimulates multiple sectors of the economy, with housing often becoming the first major action launching this path of wealth accumulation.
RB Property Group notes that despite some recent improvements, the World Bank continues to classify South Africa as one of the most unequal societies in the world. Economic growth over the last decade has been too weak to significantly improve employment and living standards, while the unemployment rate remains exceptionally high. Studies also show that strengthening the middle class increases household consumption, investment, and long-term economic resilience. Expanding the middle class contributes to increased tax revenue, improved household welfare, strengthened property markets, increased private investment, enhanced consumer confidence, and better financial inclusion.
Conversely, the company warns that if economic growth consistently lags behind population growth, the average standard of living stagnates or declines, making it difficult for households to accumulate wealth. Homeownership remains one of the most effective mechanisms for intergenerational wealth creation, as the homeowner accumulates equity, financial discipline, savings, security, and retirement assets. By financing first-time homebuyers, banks are financing future taxpayers, entrepreneurs, investors, and consumers. Therefore, perhaps the conversation should move beyond the question: 'What is the client's current credit score?' Instead, lenders could ask: 'How much has this client improved?' Behavioral improvement can be as important as historical performance. Examples of such metrics include consistent debt reduction, maintaining twelve months of perfect payments, completing recognized financial literacy programs, demonstrating stable employment, increasing savings, and improving solvency. RB Property Group believes that such indicators can complement traditional credit scoring without replacing prudent underwriting checks.
Potential solutions for South Africa include implementing progressive interest rates, mortgage lending programs for financial recovery, incentives for credit score improvement, public risk sharing, expanded creditworthiness assessment models, pre-approval financial literacy training, and shared responsibility.
Meanwhile, while rising cement prices continue to put pressure on small construction businesses, a new circular cement entrepreneurship program allows young builders and bricklayers to reduce production costs, strengthen their businesses, and adopt more sustainable construction methods. The nine-month Circular Cement Youth Entrepreneurship Program aims to support 100 entrepreneurs in building stronger and more profitable businesses while helping South Africa transition to a more circular construction economy. The program is designed for B-BBEE candidates under 35 who already run a construction or bricklaying business, combining practical technical training, business optimization support, and access to innovative construction methods developed through research at Stellenbosch University.
Developed by Fix Forward and Impact Hub Cape Winelands in collaboration with Stellenbosch University, this program is funded by the Presidential Youth Employment Intervention (PYEI), administered through the Industrial Development Corporation (IDC), and supported by the Department of Employment and Labour. It addresses several pressing issues in the South African construction sector, including rising material costs, youth unemployment, and the need for more sustainable building methods.
The Durban City team has evolved beyond just a promoted side aiming to establish itself in the upper echelons. It is now a full-fledged squad that needs to find ways to compete against Africa's best teams.
Winning the Nedbank Cup last season was both a blessing and a curse. While it was a blessing for obvious reasons, it became a curse due to the demands associated with participating in the CAF Confederation Cup while simultaneously playing in the local league and subsequent cup tournaments, including MTN8, Carling Knockout, and Nedbank Cup.
Last season, the team's defense appeared complete, even strong enough to secure a 0-0 draw against Orlando Pirates at Orlando Stadium. The club's defense demonstrated composure beyond the players' age. However, the team struggled precisely in the final third of the pitch.
Over the last ten matches of the previous season, Durban failed to secure a victory, raising serious questions about the attacking unit. Joslin Kamatuka started the season in good spirits, but injuries struck this Namibian forward, forcing Jean Lubumba onto the field. By the end of the season, Lubumba seemed to pick up pace, scoring in a run of games, but then the momentum slowed. Durban looked like a team lacking a playmaker or a capable number nine striker who could win matches and utilize a solid defense.
Following the recent KZN Premier's Cup, which served as a warm-up before the start of the season this weekend, the newly appointed Durban coach, Khalil Ben Youssef, expressed the view that the club still lacks creativity in its attacking approach. Ben Youssef, a former assistant coach for Kaizer Chiefs, is well aware of the difficulties of playing in Africa, which was the main reason for his recruitment to the club.
After Durban City was eliminated from the Premier's Cup via penalties by Richards Bay, Ben Youssef stated that the club lacks squad depth, arguing that the team needs two or three more players with experience in CAF competitions. He noted: 'The team played very well in the first and second thirds. Unfortunately, in the final third, I feel we need some creativity and more decisiveness.'
He continued: 'I am satisfied with the team, but we still need about two or three players to help the squad—just to be more confident in the team. We will participate in many competitions this season, and we need more players in the squad for rotation.'
Durban parted ways with former assistant coach Pitso Dladla but managed to acquire players with CAF experience: Bandile Shandu, Gastón Sirino, and Tashreeq Morris. Ben Youssef believes this trio will play a vital role in guiding the Durban team through its first CAF experience. Now it depends on him whether he can integrate the new players into the Durban squad.
Last season, Durban demonstrated huge potential and resilience. If they can combine this with Ben Youssef's experience, it could be another fruitful season. However, if they fail to sort out their game in the final third of the pitch, the season could turn into a disappointment.
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