South Africa's pension fund invests in affordable housing
It is hoping to reduce South Africa's significant housing shortage.South Africa's Government Employees Pension Fund (GEPF) is investing R10.5 billion (€660 million) into lender SA Home Loans to provide cheaper mortgages to government employees.
In addition to helping reduce South Africa's significant housing shortage, vice chairperson of the GEPF board Dries de Wit said that the investment will boost the economy by stimulating demand for and supply of a range of related goods and services.
"Not only is more long-term funding for housing needed, but in general, pension funds are underinvested in residential property, particularly affordable developments," he said.
Abel Sithole, executive officer of the pension fund, said the investment "will enable many government employees to own their own houses at a much more affordable rate".
"We believe there are many GEPF members who often do not qualify for bank-issued housing loans and housing subsidies offered by the government," he added.