Johannesburg - South Africa’s Government Employees Pension Fund, the continent’s largest, invested R10.5 billion ($730 million) in mortgage provider SA Home Loans to boost government workers’ access to housing.
The investment will be done by the Public Investment Corporation on behalf of the GEPF, according to a statement distributed in Johannesburg on Wednesday.
Of the funds, R5 billion is earmarked for civil servants, R2 billion will be allocated to affordable housing for low-income earners, R2 billion to help SA Home Loans extend mortgages to other qualifying applicants, and R1.5 billion for affordable housing developers.
“We can make good financial returns,” Dries de Wit, vice chairman of the GEPF, said at a presentation in Johannesburg. Housing is key to economic development, stimulates the demand for goods and services, and will help grow the economy, he said.
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