This report focuses on residential facilities/old age homes for old people in South Africa and includes information on the funding of facilities with a focus on those that are subsidised by government. There are profiles of 27 companies, NGOs and associations including Rand Aid, Algoa Bay Council for the Aged, Flower Foundation Retirement Homes, Botshabelo Haven, Free State Care in Action and Life Esidimeni.
Residential Facilities for the Elderly
South Africa’s elderly population aged 60 and over continues to increase as a percentage of the population and currently sits at 5.4 million people. There is much demand for accommodation and care for the elderly, and not enough supply, especially for affordable care, and old people continue to lack access to adequate healthcare, social support, and other basic services. Government’s social grant payments for old people and subsidies provided to residential care facilities are insufficient to cover increasing costs, forcing many facilities to close.
Hundreds of organisations providing social care services across South Africa are struggling financially and have had subsidies cut. Various associations and non-profit organisations’ funds are insufficient to cover the costs of providing services to elderly citizens and they came under increased pressure as fund-raising activities did not take place due to the pandemic. This has resulted in growing deficits and closures. Only a small percentage of South Africans are financially able to retire comfortably. The development of private retirement accommodation and care is a growing sector.
Demand for care among the elderly is expected to escalate, but South Africa is ill prepared and there is a shortage of affordable residential facilities. The shortage of trained and experienced nurses, and care workers places further challenges on the sector and various associations and old aged homes have called on government to review its funding model.