Johannesburg, South Africa, March 12, 2025 – To support the construction and purchase of green buildings and homes in South Africa, including in the affordable housing sector and for women home-owners, IFC today announced a loan to The Standard Bank of South Africa Limited (Standard Bank), the country’s largest bank by asset value.
IFC’s $250 million unsecured senior loan will support Standard Bank to provide financing to real estate developers and homebuyers of properties that align with global best practices for green construction.
The partnership will catalyze more sustainable construction in South Africa’s residential, commercial, industrial and retail property sectors, with each building certified through IFC’s EDGE (or equivalent standard) for energy and water efficiency and for the use of more sustainable construction materials.
EDGE provides guidance to property developers on how to build green and rates the energy efficiency of their buildings in a fast, easy, and reliable way.
Up to $75 million of IFC’s funding will support individual home loans, with up to $37.5 million earmarked for women seeking to purchase a home. At least half of all funds allocated to new residential developments will target the affordable housing segment.
“South Africa's property sector presents immense growth potential, and with rising urbanization, the demand for sustainable, resource-efficient developments has never been greater,” said Kenny Fihla, Standard Bank Group Deputy Chief Executive Officer, and Chief Executive Officer South Africa. “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, said, “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 offset greening and certification costs for building developments and homes financed under the project, the partnership will be further supported by a $4.8 million performance-based initiative provided by the Market Accelerator for Green Construction (MAGC) program. A bilateral initiative between IFC the United Kingdom’s Department for Energy Security and Net Zero, MAGC incentivizes the scaling up of green residential and commercial construction loans and mortgage financing and will only benefit end-borrowers.
This partnership aligns with IFC’s strategic aims to increase private sector participation in key sectors in South Africa for inclusive, sustainable, and broad-based growth. IFC has invested more than $5.2 billion in South Africa in the past five years, making it IFC’s largest country exposure in Africa and its fifth largest globally.