Johannesburg, South Africa, September 10,
2013 -- IFC,
a member of the World Bank Group, and the National Housing Finance Corporation
of South Africa today announced investments of more than $63 million in
International Housing Solutions’ IHS Fund II, which will support the development
of affordable housing in South Africa and sub-Saharan Africa.
The commitments, which include $25 million
from IFC, come as IHS, a global private equity investor, prepares to expand
its footprint across Africa following the success of its first South African
Workforce Housing Fund. The SA National Housing Finance Corporation is
a development finance institution established by the South African government
to fund and facilitate the development of affordable housing
Saleem Karimjee, IFC Senior Manager for Southern
Africa, said, “Providing affordable basic services, such as access to
quality housing, is a priority for IFC in Africa. The IHS Fund II offers
an attractive opportunity for private investors to gain access to a fast-growing
market with significant positive social impact. IFC’s commitment will
stimulate investment, growth, and job creation in sub-Saharan Africa, demonstrating
our support that can help catalyze additional fundraising.”
NHFC CEO, Samson Moraba, said, “Our
goal is to enhance the well-being and quality of life of low- to- middle
income households with the security of a home, and opportunity to create
wealth. We firmly believe that our strategic partnership with IHS
will unlock the delivery of housing at scale, and ultimately lead to the
creation of sustainable and attractive communities.”
Soula Proxenos, IHS Managing Partner,
said, “IHS has already provided financing for over 28 000 housing units
with a combined total value of more than ZAR 8.6 billion, providing tangible
positive social impact for the people living in IHS developments. We can
substantially expand that impact though the HIS Fund II.” IHS Fund II
expects to secure more than $300 million in funding commitments.
IHS is a pioneer fund manager in recognizing
the potential of developing affordable housing, so-called ‘gap housing’,
in developing markets. It opened up a valuable new sector for its
investors while helping thousands of families to afford a home of their
own and start their journey to wealth creation through property ownership.
IHS's first fund, SAWHF, has committed over
$230 million (ZAR 2.3 billion) to providing affordable housing in emerging
markets while generating superior risk-adjusted returns. IHS's investments
in housing have more than doubled investors’ capital through these projects,
encouraging a range of South African and international investors to look
more closely at this often ignored segment of the market.
IHS Fund II will consist of two sleeves:
one that will invest in the Republic of South Africa and another that will
invest in Ghana, and possibly other target markets under the right conditions.
Markets under consideration include Zambia, Botswana, Namibia, and Mauritius.
IFC, a member of the World Bank Group, is
the largest global development institution focused exclusively on the private
sector. Working with private enterprises in more than 100 countries, we
use our capital, expertise, and influence to help eliminate extreme poverty
and promote shared prosperity. In FY13, our investments climbed to an all-time
high of nearly $25 billion, leveraging the power of the private sector
to create jobs and tackle the world’s most pressing development challenges.
For more information, visit www.ifc.org