Development finance institution the International Finance Corporation (IFC), which is part of the World Bank Group, has made a R1-billion, or $58-million, facility available to JSE-listed residential property developer Balwin Properties to support the development of more than 14 500 affordable apartments for buyers at Mooikloof Smart City, in Tshwane.

The IFC's local currency R1-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 40 km from Johannesburg, and help to increase the supply of affordable housing in the country.

Further, Mooikloof Smart City was earmarked as a Presidential Strategic Integrated Project, and 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 an effort by the government to create employment and boost economic growth through infrastructure development, Balwin Properties said in a statement.

The homes will meet IFC’s Excellence in Design for Greater Efficiencies (EDGE) Advanced certification, ensuring reduced energy and water consumption while lowering long-term costs for homeowners.

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.

“Housing is a catalyst for individual well-being, strong communities and overall economic growth, making it a key priority for IFC,” said IFC Southern Africa regional director Cláudia Conceição.

“The 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,” she said.

The IFC 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.

Additionally, the IFC loan facility will complement government’s investment in the bulk services infrastructure required to unlock the entire development.

An estimated 66% of South Africa’s population resides in urban areas, and this is projected to rise to 71% 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.

Additionally, the 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, the IFC said.

“The support from the IFC not only enables us to expand the availability of affordable housing, nut reinforces our dedication to green building practices,” said Balwin Properties CEO Steve Brookes.

Balwin's EDGE Advanced certified apartments enable savings of more than 40% in energy and 20% in water and in terms of 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.”

This investment also will stimulate job creation, economic growth and local supply chains, strengthening the surrounding community and contributing to South Africa’s broader development goals, he said.

“Balwin is considering applying for Green Star Precinct Ratings at our Riverwalk and Mooikloof developments in Tshwane,” he added.