Build It—a building material retailer with more than 275 stores in South Africa, Lesotho, Namibia, Swaziland and Mozambique—partners with housing microlenders to provide in-store housing microfinance. In South Africa, its predominant market, Build It has four preferred lenders that each store can choose to work with. This moves credit risk away from Build It to the lenders and increases access to housing microfinance for households, while it also allows lenders to access the market that is Build It customers and ensure that lending is specifically for housing . This case study explore this business model, while looking at the opportunity (and constraints) for Built It and the four microlenders to offer a remittance product for housing. We hope that this case study, and the other case studies in the series, contribute to the development of imaginative solutions by housing finance practitioners across the continent, assisting them in adapting initiatives to manage the vast array of challenges they face daily.
This case study was prepared with the support of FinMark Trust