BII makes follow-on investment in South Africa’s Divercity

Points clés à retenir

South Africa continues to grapple with a persistent housing shortage, a challenge exacerbated by historical policies, including those from the Apartheid era. The housing deficit, estimated at 1.2 million units in 1994, has grown to over 2 million units despite government efforts, including initiatives like the Reconstruction and Development Programme and the Breaking New Ground Policy. Interventions like the First Home Finance subsidy aim to address affordability, but the housing stock remains limited. The Centre for Affordable Housing Finance in Africa (CAHF) notes that it is rare to see private developers constructing housing units priced below R750,000 (about $40,800) due to concerns about project viability and insufficient profit margins. In this context, supporting initiatives like Divercity and Johannesburg-based private equity fund manager International Housing Solutions (IHS) becomes crucial. These efforts aim to contribute to addressing the housing shortage and promoting inclusive and affordable housing solutions in South Africa.