The “Urban Renewal Programme (URP)”, adopted in 2001 and designed for a period of 10 years, is to ensure that sector programmes on poverty alleviation, violence prevention, urban up­grading, economic growth and environmental sustainability are imple­mented in an integrated manner. KfW supports the South African Government in implementing URP. After a feasibility study carried out by AHT in 2002, a first allocation of Euro 7.5 million out of the German-South African Financial Cooperation has been made available for the imple­mentation of the project “Urban Upgrading in Khayelitsha, Cape Town”.

The project approach is essentially based on establishing urban sub-centres of priority intervention that provide a variety of social and commercial services as well as community space and recreational facilities to the population in a safe and secure environment. The design of each sub-centre with regard to size and services to be offered is planned and decided upon together with the population and their representatives, depending on the specific needs and demands.

The programme concept is complemented by area-based interventions: A Social Development Fund operates on an application basis and provides the most deprived groups in Khayelitsha with funding for investments in their immediate neighbourhood. Such investments would be in the field of physical infrastructure, social and cultural activities or income generating activities.

Supporting Measures are also envisaged to ensure that the programme objectives are achieved. These measures comprise the strengthening of general capacities and competencies of existing neighbourhood organisations, enhancement of community structures, specific training and capacity building measures, awareness campaigns, counselling activities etc.