Project Snapshot: Opening a door to homeownership in South Africa
Site South Africa
Challenge Large numbers of homeless in South Africa needed housing but even with government subsidies in place, local builders were often unable to obtain bank loans for construction projects.
Solution OPIC, together with the Soros Foundation, provided a loan guaranty to a major South African bank to support lending to home builders through the country’s National Urban Reconstruction and Housing Agency, or NURCHA.
Impact The deal has led to the construction of almost 40,000 modest houses per year, providing homes for more than 500 people every day, while also employing large numbers of local contractors, helping many black–and minority–owned businesses establish themselves, and creating local jobs. Read more