The International Finance Corporation (IFC), part of the World Bank Group, has announced a R1 billion ($58 million) facility to be made available to South Africa’s Balwin Properties to support the development of over 14,500 affordable apartments for buyers in Tshwane, helping increase the supply of affordable housing in the country.
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IFC’s local currency ZAR 1 billion loan for Balwin Properties will facilitate the construction of apartments within the Mooikloof node, a mixed-use lifestyle precinct located east of Pretoria and about 40km from Johannesburg.
Mooikloof Smart City was earmarked as a “Strategic Integrated Project” (SIP) in terms of Government Gazette No. 43547 published on 24 July 2020. In essence, this means that the Department of Public Works and Infrastructure will pay for all external bulk services installations such as water, sewer, electricity, roads and stormwater in respect of Mooikloof Smart City. This is in an effort by the government to create employment and boost economic growth through infrastructure development.
Investment into bulk services infrastructure
The apartments will be built to high environmental standards and include energy-efficient appliances, water-saving equipment, and insulation to minimise temperature fluctuations, enhancing sustainability and supporting South African’s transition to a lower-carbon economy. Each apartment will be certified by IFC’s Excellence in Design for Greater Efficiencies (EDGE) tool.
The availability of the IFC’s loan facility 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. The IFC loan facility will complement government’s investment into the bulk services infrastructure required to unlock the entire development.
Expanding access to quality housing
Cláudia Conceição, IFC’s Regional Director for Southern Africa commented: “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.
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.
Green Star Precinct Ratings
“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.”
Balwin’s green bonds offering currently affords clients an interest rate reduction of between 0.25% to 0.75% by most of the major financial institutions. The reduced interest rates received by Balwin’s clients on mortgage bonds due to the green certification of apartments has resulted in savings of approximately R80 million for clients on apartments sold in the Group’s financial year ended
28 February 2025 when quantified over the duration of their mortgages.
Top picture: Cláudia Conceição, IFC’s Regional Director for Southern Africa and Steve Brookes CEO and founder of Balwin.
