Nedbank Corporate and Investment Banking (NCIB) and the Development Bank of Southern Africa‘s Green Fund (DBSA) has partnered to construct 400 green houses in South Africa.
The construction of green houses in South Africa will combine social and environmental sustainability to promote access
to better quality housing units with lower running costs.
The agreement also includes the monitoring of energy and water consumption in green affordable housing units to verify the actual savings. It will be achieved creating an earmarked R120m concessionary loan funding pool administered by Nedbank.
“This captures the spirit of Nedbank’s 2030 plan, and to be a thriving bank, we need to operate in a thriving society,” says Manie Annandale, head of affordable housing development finance at NCIB.
Gauteng and Western Cape’s 400 families will not be the only beneficiaries of this partnership. The increased demand for green housing technologies such as solar water heaters, heat pumps, insulating materials and efficient lighting will stir the local industries and enhance creation of new jobs.
The partnership aims at supporting South Africa’s efforts to move towards a greener economy which is the main focus area for the DBSA’s Green Fund.
“A partnership with Nedbank makes it possible to fund modern affordable housing projects which contribute to achieving the objectives of the National Development Plan,” says Mohale Rakgate, general manager for project preparation development unit at the DBSA.
Lower life-cycle costs make green homes particularly attractive to environmental sustainability with a typical household in this market earning up to R20,000 per month, purchasing a home for under R620,000 or occupying a rental unit costing up to R6,500.
“Significant savings in power and water bills can reduce the likelihood of default on rentals or bond payments, and help to improve access to housing for new individuals in the market,” notes Manie Annandale.