To boost the development and purchase of eco-friendly buildings and homes across South Africa, including in the affordable housing sector and for women homeowners, IFC has announced a US$250mn loan to The Standard Bank of South Africa Limited, the nation’s largest bank by asset value
The unsecured senior loan will enable Standard Bank to extend financing to real estate developers and homebuyers for properties that meet international best practices for sustainable construction.
This collaboration will drive greener development in South Africa’s residential, commercial, industrial, and retail property sectors, with each project adhering to IFC’s EDGE certification or an equivalent standard for energy and water efficiency and sustainable building materials.
EDGE provides property developers with insights on constructing environmentally friendly buildings and offers a fast, easy, and reliable method to assess their energy efficiency.
Boosting green housing
Up to US$75mn of IFC’s funding will be allocated to individual home loans, with US$37.5mn specifically designated for women purchasing homes. At least half of all funds directed toward new residential projects will be focused on affordable housing.
Kenny Fihla, Standard Bank group deputy CEO for South Africa, stated, “South Africa's property sector presents immense growth potential, and with rising urbanisation, the demand for sustainable, resource-efficient developments has never been greater. This collaboration allows Standard Bank and its clients to meaningfully grow a more sustainable real estate landscape.”
Cláudia Conceição, IFC’s regional director for Southern Africa, added, “IFC is pleased to expand the collaboration with Standard Bank, our longstanding partner in South Africa, to help widen access to finance for certified green buildings in South Africa. As we continue to champion innovative blended finance solutions to support high-impact segments in the real estate sector, such as affordable housing and women homeowners, IFC is helping in their transition towards a more sustainable future and supporting the growth of a more inclusive and resilient economy.”
To help offset the costs of greening and certification for developers and homeowners, the project will also be supported by a US$4.8mn performance-based initiative under the Market Accelerator for Green Construction (MAGC) program. This bilateral initiative between IFC and the UK’s Department for Energy Security and Net Zero is designed to scale up green residential and commercial construction loans and mortgage financing, benefiting end-borrowers directly.
This partnership aligns with IFC’s commitment to increasing private sector participation in South Africa’s key sectors to drive inclusive, sustainable, and broad-based growth. Over the past five years, IFC has invested more than US$5.2bn in South Africa, making it IFC’s largest country exposure in Africa and its fifth largest globally.
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IFC and Standard Bank drive green housing in Africa
A US$250mn IFC loan will help Standard Bank finance eco-friendly, affordable housing and commercial developments across South Africa. (Image source: Adobe Stock)
