South Africa faces a shortage of affordable housing, and so to meet the demand, IFC invested $21 million in a large equity investor in the country’s affordable housing sector. This included a $10 million concessional equity investment to partially cover the cost of incremental greening costs, which developers would not be covering in homes intended for low-income populations. IFC also helped to build out technical capacity related to EDGE certification, resulting in the training of developers.
This investment resulted in the adoption of green technologies by developers, which have not only reduced greenhouse gas emissions, but also led to savings for residents on energy and water bills. A survey of the newly constructed units demonstrated annual utility savings equal to one month of rent, and participating developers have committed to building to EDGE certification in the future – growing the green housing stock.
Source:
International Finance Corporation. (2019) Green Buildings: A Financial and Policy Blueprint for Emerging Markets. International Finance Corporation.
Link: https://www.ifc.org/en/insights-reports/2019/green-buildings-report