Corporate and investment bank Rand Merchant Bank (RMB) and property financial technology company Indlu have launched a R1-billion blended finance programme to formalise and scale South Africa’s burgeoning affordable rental market.
The programme aims to bridge the national housing gap – currently estimated at 2.3-million units – by providing sustainable, affordable credit to micro-developers who have historically been excluded from traditional banking sectors owing to a perceived lack of formal collateral.
Indlu has identified an immediate project pipeline exceeding R915-million over the next 12 to 24 months, with a specific goal to raise R500-million for property entrepreneurs within the first year.
“Our ambition is to fundamentally change the landscape of informal settlements. By turning each tile in the urban mosaic into formalised, dignified infrastructure, we are building better African cities from the ground up,” says Indlu CEO Cobus Truter.
“The R1-billion deployment is expected to have a profound multiplier effect on the economy through significant job creation and social upliftment.”
