September 15 2025 20:45
SOUTH AFRICA
TUHF, a leading South African financier of affordable residential property development, has announced its partnership with the International Finance Corporation (IFC), a member of the World Bank Group, to expand access to affordable housing while championing green construction practices.
IFC’s up to R960m (equivalent to $54m) loan to TUHF wants to drive inclusive, sustainable urban development by supporting the company to finance mostly small and medium enterprises (SMEs) to develop affordable green-certified rental buildings in South Africa’s inner cities and townships.
This partnership marks an important milestone for TUHF, “extending TUHF’s impact agenda by taking its green finance initiatives to new heights”, according to CEO Paul Jackson. The collaboration positions TUHF as one of South Africa’s leading impact financiers, delivering both social and environmental outcomes through its investments, he said.
IFC’s investment will be channeled through an up to R1.2bn special purpose vehicle, with additional funding to be contributed by TUHF and third-party lenders. The local currency loan protects South African borrowers from the negative effects of exchange rate fluctuations, and its long-term nature ensures financial sustainability while maximising impact, according to TIHF.
“Our partnership with IFC underscores TUHF’s dedication to delivering sustainable, affordable housing solutions that address socio-economic and environmental challenges – in other words, sustainable impact in South Africa’s urban landscape,” said Paul Jackson, CEO of TUHF. “Together, we aim to empower property entrepreneurs, improve livelihoods, and set new benchmarks for sustainable impact investing in the housing sector,” Jackson said.
“IFC’s partnership with TUHF represents IFC’s commitment to innovative finance, job creation, and sustainable and climate friendly economic growth,” said Ethiopis Tafara, IFC Vice President for Africa. “Together, we will provide SMEs with opportunities for growth and create much-needed job opportunities, contribute to inner city rejuvenation and affordable rentals for low-income communities, and help set green standards for housing in South Africa,” Tafara said.
Additionally, IFC will provide advisory services to enhance TUHF’s capacity to originate and manage loans for certified green buildings, the groups said. The introduction of an ESG System, developed with support from the IFC and Proparco, will further strengthen TUHF’s ability to monitor and report on ESG outcomes, they said.
This partnership will be supported by the Market Accelerator for Green Construction (MAGC) program, a collaboration between IFC and the UK government to promote green construction in emerging markets. TUHF’s projects will align with the program’s objectives by prioritising retrofitting and converting existing buildings, reducing embodied carbon, and constructing new developments that meet stringent green building standards. Retrofits and conversions will qualify for a performance-based incentive (PBI) funded by MAGC.
The MAGC provided PBIs, totaling $7.8m, are designed to support TUHF’s end borrowers, who often operate in high-risk or underserved areas. These incentives will directly reduce loan amounts, making sustainable development more accessible to South Africa;s SME property entrepreneurs.
The IFC partnership would complement TUHF’s focus on Environment, Social, and Governance (ESG) principles, reinforcing its broader commitment to transformation and impact investing, Jackson said. By incorporating green finance into its core operations, TUHF facilitates urban densification and combats sprawl, enabling tenants to access affordable rental housing near economic hubs and amenities, he said.
In its 2024 financial year, TUHF delivered around 3,043 affordable housing units, creating homes for more than 9,130 people and bringing its total delivery since inception in 2003 to over 50,000 units. This collaboration with the IFC is expected to significantly increase these numbers, creating job opportunities and stimulating local economies, while supporting objectives to reduce carbon emissions within South Africa’s inner cities and suburban areas, according to Jackson.
“As TUHF operationalises the partnership, we remain focused on our mission to foster financial inclusion, urban regeneration, and sustainable impact. With the IFC’s backing, TUHF is uniquely positioned to showcase its leadership as a South African impact investor, combining both social and environmental outcomes to build thriving, inclusive cities,” said Jackson.
alistair@propertyflash.co.za
