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South Africa is urbanising swiftly, as is the continent. In the last decade, the urban population has expanded at a 2% yearly rate, and by 2030, 71% of South Africa’s population will live in cities. Despite supplying roughly 3 million state-sponsored homes to low-income households since 1994, the government hasn’t kept up with the metropolitan population’s housing needs. In 2018, 26% of urbanites lived in slums. While rural income poverty is higher (81%) than urban (41%), urban poverty is often worse.
South Africa’s GDP is R6.8 trillion (US$418 billion), and its population is 60 million. After declining 6.4% in 2020, the economy expanded 4.9% in 2021 due to the progressive reopening of the economy following COVID-19 laws and movement limitations, increased global demand for South African exports, and high commodity prices. First-quarter 2022 GDP grew by 1.9%. Global recession fears pulled down commodity prices, and load shedding contributed to a 0.7% dip in second-quarter GDP growth. Residential and commercial construction declined 2.4% in the second quarter of 2022. Since April 2022, the rand has fallen due to recession, worldwide inflation, and interest rate hikes. SARB hiked repo rates to combat inflation. The latest repo rate hike in July 2022 to 5.5% adds to household pressure from rising food and gas prices. It’s 9.5%.
Extreme weather and climate change threaten South Africa. Flooding and landslides in Kwa-Zulu Natal harmed 40 000 people in April 2022.By 2025, natural disasters are expected to cost the government and economy 37%.
Recently built two-bedroom homes begin at R679 000 (US$41 374).Your monthly payments would be R6 000 (US$366) with 9% interest and no deposit.With a FLISP subsidy, an R20,000 (US$1,219) household could afford this. Even with a FLISP subsidy, these home prices are out of reach for those earning less than R18 000.
South Africa’s financial system includes mutual, cooperative, and foreign banks. Standard Bank, First National Bank, ABSA, Nedbank, and Capitec dominate the industry. Residential mortgages totaled R1.12 trillion (US$68.2 billion) at the end of March 2022, with 1.6 million borrowers representing 4.1% of the 15- to 64-year-old population.
Despite rising interest rates, South Africa’s housing industry is experiencing more mortgage lending and homebuying. Home improvement and expansion projects deserve microlending and investment. Lower-income consumers may prefer green mortgages with lower interest rates and electricity expenditures. Off-site modular homes are another option.
Find out more information on the housing finance sector of South Africa, including key stakeholders, important policies and housing affordability:
- Access to finance
- Housing supply
- Property markets
- Policy and Legislation
- Availability of Data on Housing Finance
- Green Applications for Affordable Housing
Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2022 edition, which has up-to-date profiles for 55 African countries.
Akin to the rest of the continent, South Africa is rapidly urbanising. The urban population has been growing on average by 2% per year for the last decade, and it is estimated that by 2030, 71% of South Africa’s total population will be living in urban areas and cities. Although the government has delivered more than three million state-sponsored houses to low-income families since 1994, it has not been able to keep up with the growing urban population in terms of adequate housing provision. In 2018, an estimated 26% of the urban population lived in slums. While income poverty, measured as the proportion of the adult population living below the upper bound poverty line (UBPL) of R1 335 (US$77) per month, is much higher in rural areas (81%) than in urban areas (41%), the intensity of poverty in urban areas is often considered to be higher.
South Africa is the second largest economy in Africa, with a Gross Domestic Product (GDP) of R6.8 trillion (US$418 billion) and a population of 60 million. After a 6.4% contraction in 2020, the economy grew by 4.9% in 2021,  driven by the gradual reopening of the economy after COVID-19 regulations and mobility restrictions, an increase in global demand for South African exports, and high commodity prices. This growth continued in the first quarter of 2022, as GDP expanded by 1.9%. However global fears of a recession put downward pressure on commodity prices, and a massive resurgence in load shedding contributed to a decline of 0.7% in GDP growth during the second quarter. The construction industry declined by 2.4% in the second quarter of 2022, which saw a decrease in residential buildings and construction work.
Uncertainties in global capital markets, fuelled by fears of a recession, international inflation, and interest rate hikes, as well as geopolitical events such as the Russia-Ukraine war, have caused the rand to plummet, especially since April 2022. On 8 September 2022, the rand weakened against the dollar to R17.52, the weakest level since 2020. This has contributed to a significant hike in consumer price inflation, which stood at 7.8% in August 2022, the highest in over a decade. Akin to central banks across the globe, the South African Reserve Bank (SARB), in an effort to rein in inflation, has implemented a series of repo rate hikes. The latest repo rate increase of July 2022 to 5.5%, the largest in twenty years, puts tremendous pressure on homeowners already burdened by cost-of-living increases in food and petrol. The prime lending rate now sits at 9%.
South Africa faces several climate change risks, especially in terms of extreme weather events. Droughts are a common phenomenon in the country and are often followed by a water and food security crisis, especially for households that depend on agriculture for their livelihoods. Likewise, flooding in some areas has negatively impacted infrastructure, housing and food security. In April 2022 for instance, flooding and landslides in Kwa-Zulu Natal displaced approximately 40 000 people, destroyed 12 000 homes, and caused severe damage to schools, roads, and health centres. The fiscal impact of natural disasters on the government budget and overall economy is likely to grow as future climate-related disasters are expected to rise globally by 37% by 2025.
 SANSA. (2019). SANSA Policy Brief: The role of satellite-based remote sensing technologies in support of urban spatial planning.
 The World Bank. (2018). Population living in slums (% of urban population) – South Africa. https://data.worldbank.org/indicator/EN.POP.SLUM.UR.ZS?locations=ZA (Accessed 15 September 2022)
 Statistics South Africa. (2017). Poverty Trends in South Africa. Pg. 68.
  Alexander, M. (2021). Mapping Poverty in South Africa. South African Gateway.
 Kamer, L. (2022) Statista. Economy & Politics. Economy. GDP of African countries, 2021. 17 May 2022. African countries with the highest Gross Domestic Product (GDP) in 2021 (in billion US dollars). Statista 2022. April 2022. https://www.statista.com/statistics/1120999/gdp-of-african-countries-by-country/ (Accessed 19 July 2022)
 Rolland, S. Marais, H. and Spangenberg, H. (2022). South Africa: Betting on foundational changes for higher growth. Deloitte, 16 March.
 Statistics South Africa (2022) PO141 Consumer Price Index (CPI), July 2022 24 August 2022.
 Gitahu, M (2022) Homeowners and house buyers to feel the pinch of the repo rate hike. Cape Argus. 25 July 2022.
 Stoddard, E. SA Reserve Bank pulls trigger with a 75-basis point rate hike to curb surging inflation. 21 July 2022. Daily Maverick.
 Joubert, L. (2022). The Effects of Climate Change in South Africa. South Africa Online (Pty) Ltd.)
 Reliefweb. (2022). South Africa: Floods and Landslides – Apr 2022. https://reliefweb.int/disaster/fl-2022-000201-zaf (Accessed 6 September 2022).
 Patel, F. (2022). Natural disasters set to increase by 37% globally by 2025- Report. 14 March 2022. The Citizen.
Access to finance
South Africa has a sophisticated banking system, with a variety of banks, including mutual banks, cooperative banks, and foreign banks. However, five commercial banks, namely Standard Bank, First National Bank (FNB), ABSA, Nedbank, and Capitec dominate the banking industry. Fifteen banks finance household mortgages to the residential sector as does a mortgage finance company, SA Home Loans. However, ABSA and Standard Bank tend to be the largest mortgage lenders to properties in the entry (valued under R300 000 (US$18 280)) and affordable market (valued up to R600 000 (US$36 560)), often accounting for more than 50% of bonded transactions in these market segments.
At the end of March 2022, residential mortgages amounted to R1.12 trillion (US$68.2 billion) with 1.6 million mortgage holders, who comprise 4.1% of the adult population aged 15 to 64. The overwhelming majority (88%) of all mortgages granted in the first quarter of March 2022 exceeded R700 000 (US$42 600), which indicates the low proportion disbursed to households in the affordable housing sector. Home loan advances have increased year-on-year to May 2022 by 7.2% possibly due to prevailing low interest rates. New residential mortgages granted with a loan-to-value ratio less than or equal to 80% decreased from 53% in 2019 to 44% in 2021, indicating a relaxation of deposit requirements. This of course raised the credit risk for banks and the high interest rate environment is expected to significantly weaken mortgage affordability.
The value of consumer credit increased year-on-year by R20.35 billion (US$1.23 billion) by March 2022, totalling 3.8 million accounts.  While this is an increase of 14.66% on year-on-year basis, it is nevertheless a decrease of 5.55% compared to the previous quarter that ended December 2021, reflecting the increased credit risk environment that accompanied 2022. The level of credit indebtedness has increased dramatically as the number of accounts increased by almost 20% year-on-year. Non-performing mortgage loans stood at 4.3%, showing a year-on-year decrease of 7% to March 2022, possibly reflecting the relief brought by reduced interest rates to financially strained households during COVID-19.
South Africa has made significant progress in recent years toward financial inclusion. A recent report showed that the number of women purchasing homes in their own right are increasing faster than men. In 2019 for instance, 27% of homeowners were single women, compared to 26% of single men. In 2020, 185 070 mortgages (30%) were approved for historically disadvantaged women in and below the gap market, out of a total of 622 286 home loans approved overall. 
There is a ready supply of microfinance institutions in the country: over 1 300 microfinance provider offices, represented by MicroFinance South Africa, are currently registered with the NCR. These institutions constitute an important credit line for low-income households who struggle to obtain housing finance through commercial banks. Microfinance institutions providing housing finance typically focus on incremental loans for home building or home improvements, and are often funded by the National Housing Finance Corporation (NHFC). These include Kanga Finance (previously Lendcor), which offers loans of up to R75 000, and a maximum repayment period of 36 months, and Evolution Finance (formerly REAL People), which offer loans of up to R175 000 (US$10 663) and a loan repayment period of up to 60 months. Women are often the major beneficiaries as more than 60% of incremental housing loans are reportedly granted to women. Nevertheless, many people with informal or irregular income struggle to obtain access to incremental housing loans, and many opt to borrow from informal microlenders that are not regulated by the NCR and often charge high interest rates.
 South African Reserve Bank (2022). BA 900 Economic returns. May 2022. Last modified 13 July 2022. South African Reserve Bank.
 CAHF (2022). South Africa Housing Market Report 2021. March 2022.
 The World Bank (2021). Data. Population ages 15-64 (% of total population)- South Africa, Central African Republic. https://data.worldbank.org/indicator/SP.POP.1564.TO.ZS?locations=ZA-CF (Accessed 29 July 2022)
 National Credit Regulator (2022). Consumer Credit Market Report. First Quarter. March 2022. Pg. 7
 South African Reserve Bank (2022) Selected South African Banking sector trends. May 2022.
 South African Reserve Bank (2022). Financial Stability Review. First Edition 2022. 25 May 2022. Pg. 49
 National Credit Regulator (2022). Consumer Credit Market Report. First Quarter. March 2022. Pg. 3.
 Ibid. Pg. 4.
 National Credit Regulator. (2022) NCR CCMR Web-Dataset 2007Q4 to 2022Q1. https://www.ncr.org.za/index.php/publications/consumer-credit-market-report-ccmr
(Accessed 24 July 2022)
 Fourie, B. (2020). Property ownership by women surges in SA. 23 August 2020. IOL.
 National Department of Human Settlements.(2020). Obtained by email from the Banking Association of South Africa. The Office of Disclosure Annual Report. Department of Human Settlements.1 January 2020 – 31 December 2020. Pgs. 29, 30, 12 & 16
 Wood, D. (2019). Housing Investment Landscapes. Centre for Affordable Housing Finance. Obtained from CAHF. Not available online. Pg. 17.
The affordability of available housing is undermined by several wider structural challenges, specifically inequality, income poverty, and unemployment. South Africa also has one of the highest unemployment rates in the world, which stood at 33.9% in the first quarter of 2022. As such, a large proportion of households – 51% – rely on grants as a source of income, often topped up by work in the informal economy (which employs approximately three million workers)  and remittances. Recognising the importance of grants as a measure of poverty alleviation, the government has announced an increase in the income threshold of the Social Relief of Distress Grant to R624 (US$38) per month, in order to improve access to the grant.
The government has made efforts to address the affordability of mortgage finance to low-income households through demand-side capital subsidies. First-time buyers earning between R3 501 (US$213) and R22 000 (US$1 341) could be eligible to receive a subsidy to purchase property under the Finance-Linked-Individual-Subsidy Programme (FLISP).  In 2020/21, 2 917 households were assisted with FLISP subsidies against a target of 6 314. Approximately two-thirds (67%) of all FLISP approvals were accorded to women this year. Through the government’s social housing programme households earning between R1 850 (US$112.73) and R22 000 (US$1 341) a month may qualify for subsidised rental housing.
The higher prime lending rate of 9% in July 2022 increased debt service costs, whilst reducing affordability at a time when most household finances are severely constrained. Less than 2% of mortgages granted in the first quarter of 2022, were extended to applications less than R350 000 (US$21 327). With the higher lending rates and high costs of living, many households simply cannot afford to purchase a home. Furthermore, difficulties in servicing debts are increasingly apparent. The number of consumers with impaired accounts increased to just over 10 million as at the end of March 2022. The credit providers’ debt relief measures for hard-hit consumers, set up during COVID-19, have come to end, thereby increasing financial strain on households.
The cost of the cheapest, newly built two-bedroom house is R679 000 (US$41 374).  With an interest rate of 9% and no deposit, the monthly repayments would be R6 000 (US$366). This would be affordable to a household with a monthly income of R20 000 (US$1 219) with a FLISP subsidy. These house prices are not affordable to households with incomes equivalent to R18 000 (US$ 1 097) or less, even with a FLISP subsidy.
Statistics South Africa (2022) Statistical Release P0211. Quarterly Labour Force Survey. Quarter 2: 2022. https://www.statssa.gov.za/publications/P0211/P02112ndQuarter2022.pdf (Accessed 26 August 2022). Pg.26.
 Statistics South Africa. (2022). P0318. General Household Survey, 2021. 23 June 2022. Pg.49.
 eNCA (2022). Limits change for social relief grant recipients. 19 July 2022.
 Fataar, R. (2019) Affordable housing: What SA needs. 27 February 2019. SAARDA.)
 Department of Human Settlements (2021). Human Settlements 2020-2021 Annual Report. Pg. 73.
 Official from the National Housing Finance Corporation, email correspondence, 18 August 2022.
 National Credit Regulator (2022) Credit Bureau Monitor. First Quarter. March 2022.
 National Credit Regulator (2021) Annual Report 2020/21. Pg. 9.
 Property24. (2022) 2-bedroom house for sale in Lehae. https://www.property24.com/for-sale/lehae/johannesburg/gauteng/17396/111600275 (Accessed 28 August 2022)
The majority of households (83% in 2021) live in a formal dwelling in metropolitan areas, while 15% live in informal dwellings. As of 2021, nationally 69.7% of households owned their home and 18.7% rented. Backyard rental is a highly prevalent phenomenon and constitutes a vital informal strategy for housing supply in urban areas. In recent years, focus has increased on programmes to release land and build infrastructure for serviced sites, following a site-and-service model. The regulated smallest residential plot size is 40m2 of floor area in urban areas.
At municipal level, the City of Cape Town has fast-tracked the release of inner-city land on two sites for social housing, namely Salt River Market site and the Pickwick Road site. In the Gauteng province, Balwin has developed projects for the affordable housing market, such as Greencreek and the Greenkloof Mooikloof Mega City project in Pretoria, which include FLISP units priced from R499 000 (US$30 406). 
The NHFC has been working on an initiative, involving the private sector, which aims to generate R1.5 billion (US$ 91.3 million) to finance 35% of social housing developments through public funds, debt and equity and aims to yield 8 000 to 10 000 new units in the next eight years. The NHFC’s strategy is instrumental in the effort to address the shortfall in the supply of “gap” housing, that is, households earning between R3 501 (US$ 213) to R22 000 (US$1 340) per month, by April 2032.
Building materials are almost entirely sourced locally. Manufacturers of cement, bricks, concrete, steel, and timber have plants all over the country and there is good distribution to building supply stores throughout the country. At least 95% of residential construction materials are typically from within a 50 km radius from plant/manufacturer to the building supply store.
There were 1.18 million people working in the construction sector in Q2 of 2022, of which 725 000 were employed in the formal sector and 452 000 in the informal sector, and 165 000 were women. In 2020, women reportedly owned 48% of South African construction companies. South African Women in Construction and the Built Environment (SAWIC BE) represents women-owned entities in construction, property development, and the property value chain.
 Statistics South Africa. (2022). P0318. General Household Survey, 2021. 23 June 2022. Pg.30.
 Charles, M. (2022). City of Cape Town to release land for social housing in inner-city. 28 July 2022. News24.)
 Buthelezi, L (2021). Balwin plans more than 62, 000 properties to roll out more affordable housing units. 17 May 2021. News24.
 Official from the National Housing Finance Corporation, email correspondence. 16 August 2022.
 Official from Builders, Massmart Holdings by email correspondence 17 August 2022: Distribution to 110 plus Builders Warehouse stores country wide.
 Statistics South Africa (2022) Statistical Release P0211. Quarterly Labour Force Survey. Quarter 2: 2022. Pg.54.
 Iafrica (2020). Multifaceted Opportunities for Women in Construction.
There are 6.7 million residential properties with title deeds in the country. Nearly three million (2.85 million) are located in the eight metropolitan areas, and 31% comprise properties subsidised by the state. The majority (52%) are properties valued at less than R600 000 (US$36 559), affordable to lower income households. This does not include homes that are not formally registered on the deeds registry, which comprise informal housing such as backyard dwellings and informal settlements.
South Africa is ranked 84th out of 190 countries according to the World Bank Doing Business Report of 2020. This compares favourably to the rest of Sub-Saharan Africa, particularly in terms of how minority investors are protected. On average it takes 23 days to register a property, entails seven procedures, and it costs 8.0% of the property value.
In 2021, 32 627 residential units were reported to municipalities as completed. In the new build market, 65 591 new transactions were recorded in 2021, which entails properties that were registered on the deeds registry for the first time, i.e. newly constructed residential units. Nearly half of these (30 150) were properties subsidised by government. Largely as a result of government housing programmes, over half of residential properties (56%) are valued below R600 000. 
With respect to the resale market, nationally, there were 197 010 resale transactions in 2021, 12% of which were government subsidised properties, delivered by the State. The entry level and affordable markets with property values of up to R600 000 (US$36 559) comprised 16% of the resale transactions. Yet, these figures do not reflect the informal sales market, which include state-subsidised homes. Although state-subsidised housing can be sold after eight years, formal trade in this market is beset by the backlog of title deeds registration.
 CAHF’s Citymark,using Deeds Registry Data supplied by Lightstone Property as of the end of December 2021 – obtained from CAHF in 2022.
 Statistics SA. (2022) Statistical Release P5041.3 Selected Building Statistics for the private sector as reported by local government institutions 2021. 29 June 2022. Pgs. 22-26.
 CAHF’s Citymark,using Deeds Registry Data supplied by Lightstone Property as of the end of December 2021 – sourced July 2022. 19 November 2019. Obtained from CAHF in 2022.
Policy and Legislation
The State plays various roles in housing delivery through ownership and rental interventions. Its major contribution has been the full-scale subsidisation, on the demand side, of low cost Reconstruction and Development Programme (RDP)/Breaking New Ground (BNG) housing and the FLISP subsidy for potential homeowners. On the supply side, the NHFC provides financial for social housing projects providing rental units.
There are several recent and upcoming pieces of legislation and policy frameworks that are directly linked to the delivery of affordable housing in the country. First, on 26 May 2021, the President signed the Upgrading of Land Tenure Rights Amendment Act 6 of 2021, which aims to allow the conversion of land tenure rights to ownership. Second, the Expropriation Bill, making way for the expropriation of private land and property, has progressed to deliberations in Parliament as of June 2022.  The bill will then proceed to the National Council of Provinces for discussion and to the President for signature. Third, a Comprehensive Rental Policy is in the pipeline, which seeks to consolidate all rental interventions that are currently fragmented with varied norms and standards for the housing typologies. Finally, the Prevention of Illegal Eviction and Unlawful Occupation of Land Act is being amended. The policy and guidelines for housing people with special needs have been formulated and still require full approval. A draft policy on Affordable Housing has been partially completed by 8 June 2022. 
 South African Government. Upgrading of Land Tenure Rights Amendment Act 6 of 2021.
 Parliamentary Monitoring Group (2022). Expropriation Bill: Parliamentary Legal Advisor and State Law advisor on proposed amendments. 1 June 2022. Public Works and Infrastructure Committee. https://pmg.org.za/committee-meeting/35101/ (Accessed 13 August 2022)
 Abrahams and Gross Attorneys (2021). Update on the Land Expropriation Bill. 23 September 2021. https://www.abgross.co.za/land-expropriation-bill/ (Accessed 13 August 2022)
 Parliamentary Monitoring Group (2022). ATC220608: Report of the Portfolio Committee on Human Settlements on the 2021/22 Second Quarter Financial and Non-Financial Performance of the Department of Human Settlements. 8 June 2022.
Between April and June 2022, there were 52 949 bond registrations on the deeds registry, a 30% increase from a year ago, which indicates an upswing in mortgage lending and consumer appetite for home purchasing, despite rising interest rates. Regarding transfers, sectional title registrations increased by 40% year-on-year in the same period.  This might suggest the appeal of more affordable sectional titles apartments to home buyers or investors, who can rent them out.
Furthermore, investors should be aware of two areas that can be attractive to potential buyers in the lower end of the market: firstly, the offer of green mortgages, albeit at reduced interest rates, and lower utility costs associated with “green” buildings in housing developments. Secondly, building plans for houses less than 80m2 showed a significant 68% increase year-on-year from January to May 2022, suggesting an increased demand for smaller housing units.
The incremental housing market for home-improvement and additions is also deserving of investment support and more micro-lending. There are also opportunities for lending to households who self-build informally on serviced sites in government land-release programmes. The rental market for student accommodation also provides prospects for investment as it is seen as a relatively stable income stream and yields above-inflation rental growth rates.
Various technological advancements could support the housing sector such as the installation of fibre connectivity in new housing developments. Another is modular construction of homes that are built off-site to the same norms and standards as conventional homes. As part of a government-university partnership, a first-of-its-kind RDP house was recently developed in one day using a 3-D concrete printing model.
Technology also holds great potential for empowering households in the low-income market. The creditworthiness of unbanked households’ can be assessed using data on payment for mobile airtime and data, with the potential to increase access to finance. Another method is to use an application, such as Bitprop, to connect low-income homeowners with potential renters, as well as finance for the building of backrooms. There is also the potential use of online contracts and online payment systems to arrange long-term rentals. Finally, there is the use of blockchain and digitised document management systems, as used by the Transaction Support Centre in Cape Town, to support the owners of state-built houses to obtain their title deeds.
 Re/Max.(2022). Re/Max National Housing Report Q2 2022.18 July 2022. https://www.remax.co.za/ask-remax/article/remax-national-housing-report-q2-2022/ (Accessed 14 August 2022)
 National Housing Finance Corporation (2021) NHFC-Integrated Annual Report 2021. https://www.iww.co.za/flipbooks/NHFC-INTEGRATED-ANNUAL-REPORT-2020-21/#34/z (Accessed 17 August 2022) Pg. 30.
 Loewentheil, N.(2019) The Technology that is making housing more affordable. 17 October 2019. SmartCItiesWOrld.
 Modular Building Institute. What is Modular Construction https://www.modular.org/what-is-modular-construction/ (Accessed 21 August 2022)
 Adonis, V. (2022) WATCH: Researchers at UJ build RDP house in just one day using #D concrete printing. 31 May 2022. IOL.
 SA Affordable Housing (2022). Finance Matters. Technology and the tale of two markets. 16 March 2022.)
Availability of Data on Housing Finance
Up-to-date reports on consumer lending and mortgage-related data are available from the National Credit Regulator, however, it was not possible to obtain data on mortgage terms. With respect to banking trends and the financial sector, the key sources of data are the Banking Association of South Africa and the South African Reserve Bank. Information on residential mortgages (advances) is also readily available through the banks’ economic returns. Finally, Statistics South Africa published reports on building statistics and general household information but not on housing finance. Although some organisations collect disaggregated data on gender, in most case it is not possible to obtain reports with gender breakdown.
Green Applications for Affordable Housing
The Green Building Council of South Africa (GBCSA) and the National Building Regulations and Building Standards (NBRBS) set out the green building standards for South Africa regarding energy efficiency. The requirements require that a building reduces energy consumption as per EDGE and SANS 10400-XA guidelines, and reduces energy pollution by way of greenhouse gases. A number of other organisations and agencies are involved in standard-setting and regulation with regard to green housing, including GBCSA, EDGE, and the CIDB. As per CIDB requirements, new buildings or major renovations are to be certified to meet a Four Star Green Star standard where such ratings exist for such a building.
Within South Africa, a variety of products are available to retrofit homes to green living standards through flat panel solar water heaters and heat pumps to provide water where no solar exists. Other products include insulation, closed combustion wood-pellet stoves, and dual flush toilets, as well as grey water harvesting systems.
Recent affordable housing developments that meet EDGE (green) certification include Belhar Gardens, a social housing project of 630 resource efficient housing units in Cape Town. Balwin undertakes sustainable building practices and ensured EDGE Advanced Certification on 7000 apartments they have developed, including the affordable housing developments.  The International Finance Corporation (IFC) is investing R325 million (US$19.8 million) in the Alleyroads development to build 1 000 affordable housing rental units in Johannesburg which will meet EDGE advanced green building standards. Finally, Green Court and Stepney Green, an International Housing Solutions (IHS) mixed-use development providing 357 affordable housing units in Parklands, Cape Town, is EDGE certified.
Apart from IHS and the IFC, key green housing finance / green micro-finance providers in the country include Nedbank’s Affordable Housing Development Finance Division that has collaborated with South Africa’s Green Fund to create an R120 million (US$7.3 million) Sustainable Affordable Housing Finance Facility.
CDC (renamed British International Investment), the UK government funded development finance institution, has invested in Divercity along with Futuregrowth. At present two leading banks offer green mortgages: ABSA with the Eco Home Loan and Nedbank with the Green Bond.
 Sonae Arauco Green building standards: five tips to help you to meet the requirements. https://sonaearauco.co.za/green-building-standards-five-tips-to-help-you-meet-the-requirements/ (Accessed 5 August 2022)
 Newdevelopments.co.za. Green Plumbing Systems: Helping property owners conserve water and reduce utility bills. https://www.newdevelopments.co.za
 International Finance Corporation. World Bank Group. (2022). IFC and Alleyroads Partner to Develop Affordable Residential Housing in South Africa. 13 July 2022.
 Green Building Council South Africa (2020) Integrated Annual Report January-December 2020. Pg. 30.
 Wood, D. (2019) Housing Investment Landscapes. Centre for Affordable Housing Finance. Obtained from CAHF. Pg. 17.
 Private Property (2020). South Africa’s first Eco Home Loan. 14 August 2020.
 JSE Admin (2021) Nedbank lists green bond on JSE to drive sustainable investment projects. 29 July 2021. JSE.
Green Building Council of South Africa https://gbcsa.org.za/
South African Reserve Bank https://www.resbank.co.za
Statistics South Africa http://www.statssa.gov.za/
Construction Industry Development Board https://www.cidb.org.za
National Department of Human Settlements http://www.dhs.gov.za
National Credit Regulator https://www.ncr.org.za
The Banking Association South Africa https://www.banking.org.za/
MicroFinance South Africa https://www.mfsa.net
Parliamentary Monitoring Group https://pmg.org.za/