Abstract
The paper examines the progress made since 1994 to reduce the deep social and spatial divisions in South African cities, focusing on the impact of current development trends in Cape Town. Basic public services are gradually being extended to the historically neglected townships. However, the character of economic and social development differs markedly across the city. Private-sector investment and jobs continue to be concentrated in the affluent north and west, while low-income subsidised housing is focused on the poorer south-east. Institutional practices and market forces are tending to reinforce spatial divisions, with costly consequences for the poor majority of the population and for the wider urban economy and society. The broad statements from policy-makers about the need for urban integration are not being translated into consistent action, apparently because of a lack of political will and institutional capacity. The new Unicity authority provides scope in principle for a more coherent approach, based in part on a strategic framework to manage land development in the interests of the whole city, and a more proactive approach towards building a stronger employment base in the south-east.