Nedbank Corporate and Investment Banking (NCIB) today announced that is has made the first disbursement from an innovative R120 million Sustainable Affordable Housing finance facility that was put in place through the collaborative efforts of Nedbank’s Affordable Housing Development Finance division, and South Africa’s Green Fund.

Richards Bay is one of South Africa’s fastest developing cities, with the country’s second biggest harbour and largest coal export facility in the southern hemisphere, stimulating rapid industrial and commercial expansion and in turn driving urban development. 

Nedbank Corporate and Investment Banking (NCIB) and the Green Fund which is managed by the Development Bank of Southern Africa (DBSA) on behalf of the National Department of Environmental Affairs (DEA), concluded an agreement to jointly fund the development of approximately 400 affordable green housing units in the Western Cape and Gauteng Provinces.

Recent studies suggest that while the demand for affordable housing is on the rise, affordability remains a barrier for millions of South Africans in this segment, resulting in renting increasingly becoming a more feasible option than buying.

While there has been an increase in the volume of land coming on stream for affordable housing developments over the last few years, there are a number of challenges that need to be overcome in order to sustain this trend.

Watergate estate in Mitchell's plain continues on growth path

With over 900,000 people seeking affordable and social housing annually, and only around 25,000 new units becoming available each year, the market for affordable housing shows immense potential for investors.

The European Investment Bank (EIB), Europe’s long-term lending institution, has agreed to provide a further R2bn for investment in affordable and social housing in South Africa. 

Today saw the official launch of the Rugby development by the City of Cape Town, Nedbank and developer, Inframax.  

An effective public and private sector partnership between Nedbank, a local developer and the City of Cape Town has resulted in the development of much needed new affordable housing in the suburbs of Rugby and Silvertown.