South Africa: Proparco backs Calgro M3 to expand access to affordable housing

Despite significant progress over recent decades, access to decent housing remains a major challenge in South Africa. Against a backdrop of rapid urbanisation and persistent territorial inequalities, the country’s housing shortage is currently estimated at 2.5 million units.

The €20 million financing provided by Proparco will enable Calgro to accelerate the development of new affordable housing projects and is expected to improve the living conditions of more than 30,000 people.

The transaction builds on the partnership established between Proparco and Calgro in 2017, reflecting a shared ambition to promote more inclusive urban development and expand access to homeownership and quality housing for South African households.

Bankenveld: an integrated development designed to foster social inclusion

The financing will support the first phase of Bankenveld, one of Calgro’s flagship developments. The project will combine a diverse range of housing options with community facilities designed to support the area’s long-term development. Reflecting Calgro’s long-standing approach, Bankenveld will bring together households from different income groups within a single integrated development.

For nearly three decades, Calgro has played a leading role in South Africa’s affordable housing sector. Today, as one of the country’s leading affordable housing developers, the group helps connect communities to employment opportunities, transport networks and essential services.

Beyond housing delivery, Calgro’s developments help strengthen local infrastructure and support economic activity in the areas where they are implemented, notably through the employment of local workers and businesses, as well as through training and skills development programmes.

The project is also eligible under the 2X Challenge, recognising investments that advance gender equality, in line with the commitments already embedded in Calgro’s governance and human resources practices.

Encouraging more sustainable building practices

As part of this financing, Proparco and Calgro will also explore opportunities to achieve EDGE certification for the Bankenveld project, an internationally recognised standard for resource-efficient and environmentally sustainable buildings.

The financing includes an incentive mechanism linked to the achievement of this certification. This reflects Proparco’s commitment to supporting Calgro’s sustainability ambitions and encouraging the integration of solutions that can further enhance the project’s environmental and energy performance.

Ben Pierre Malherbe, CEO of Calgro M3 Developments, said: “We are proud to deepen our longstanding partnership with Proparco as we continue to address South Africa’s housing needs through sustainable and inclusive developments. The Bankenveld project represents a significant milestone in our commitment to creating integrated communities that provide access to quality housing, economic opportunities and essential services. This funding will enable us to accelerate delivery while maintaining our focus on social impact, environmental sustainability and long-term value creation for the communities we serve.”

Johann Choux, Proparco’s Regional Director for Southern Africa and the Indian Ocean, said: "Affordable housing is a powerful driver of both social inclusion and economic development. By supporting Calgro M3 Holdings, South Africa’s leading social housing developer, Proparco is partnering with a proven market leader capable of delivering housing solutions at scale. This partnership reflects our long-term commitment to expanding access to quality affordable housing and supporting more inclusive urban development across South Africa."