A R1 billion blended finance programme, launched by Rand Merchant Bank (RMB) and INDLU, seeks to bridge South Africa's housing gap of 2.3 million units by providing sustainable credit to micro-developers excluded from traditional banking.

The initiative uses catalytic funding from the FirstRand Foundation (FRF) and FSD Africa Investments (FSDAi), with FRF committing R30 million for construction facilities and FSDAi acting as anchor funder.Additional support comes from FNB's R400m long-term financing.INDLU, a property fintech company, enables landowners to build affordable rental housing through microfinance loans managed via a digital ecosystem.The programme has already delivered over 2,200 units in areas like Tembisa and Mamelodi, creating jobs and improving urban infrastructure.It emphasizes formalizing informal settlements while promoting gender equity, with 64% of landowners being female.Old Mutual highlights South Africa's rental market potential, noting 4.5 million households rent homes, underscoring the need for professionally managed rental platforms.