IFC has announced a ZAR 1 billion (US$ 58 million equivalent) investment in South Africa’s Balwin Properties to support the property developer to build more than 16,000 houses for low-and-middle income buyers near Johannesburg, helping increase the supply of affordable housing in the country.
IFC’s local currency ZAR 1 billion loan for Balwin Properties will facilitate the construction of Mooikloof City, a housing development to be located east of Pretoria and about 40 kilometres from Johannesburg consisting of 16,468 housing units.
The houses will be built to high environmental standards, and include energy-efficient appliances, water-saving equipment, and insulation to minimize temperature fluctuations, enhancing sustainability and supporting South African’s transition to a lower-carbon economy. Each house will be certified by IFC’s Excellence in Design for Greater Efficiencies (EDGE) tool.
IFC’s investment is expected to promote job creation and economic growth through its impact on the local community and surrounding areas, deepening local supply chains, and improving business and residential infrastructure.
Steve Brookes, CEO of Balwin Properties commented, “The support from IFC not only enables us to expand the availability of affordable housing but also reinforces our dedication to green building practices. Balwin is the world’s largest developer of EDGE Advanced certified apartments, enabling savings of more than 40% in energy and 20% in water and embodied energy in materials compared to conventional building methods. Homeowners save on monthly utility charges through lower consumption as well as through potential lower bond repayments thanks to our Green Bonds with most major banks.
“As urbanisation accelerates, we recognise the critical role the private sector must play in addressing the housing shortfall and we are proud to be part of the solution. Beyond housing, this investment will stimulate job creation, economic growth and local supply chains, strengthening the surrounding community and contributing to South Africa’s broader development goals.
“Balwin is continuously innovating when it comes to sustainable development, and we are considering applying for Green Star Precinct Ratings at our Riverwalk and Mooikloof developments in Tshwane.”
Cláudia Conceição, IFC’s Regional Director for Southern Africa said, “IFC’s strategic investment in Balwin underscores our commitment to expanding access to quality housing for low- to middle-income households, directly supporting South Africa’s National Development Plan. Housing is a catalyst for individual well-being, strong communities, and overall economic growth, making it a key priority for IFC.”
An estimated 66 percent of South Africa’s population resides in urban areas, a figure projected to rise to 71 percent by 2030. To effectively address the country’s large housing shortfall, it is essential for the private sector to play a meaningful role in complementing the government’s construction efforts.
IFC’s investment in Balwin aligns with the World Bank Group’s strategic focus in South Africa, which aims to leverage private finance to help bridge social infrastructure backlogs, including the shortage of housing.
