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Key points:
- Michiel Le Roux, a prominent South African billionaire, spearheads the initiative, bringing his extensive experience and resources to address the nation’s affordable housing challenges.
- Capitec teams up with Cashbuild and the National Housing Finance Corporation (NHFC) to create Zakhelikhaya, integrating their respective expertise in finance, construction, and housing policy.
- The project uniquely combines a ‘first home’ subsidy from NHFC with Capitec’s financing options and Cashbuild’s construction resources, making home ownership more attainable for first-time buyers.
Capitec Bank, led by prominent South African billionaire Michiel Le Roux and in partnership with Cashbuild and the National Housing Finance Corporation (NHFC), has announced the launch of the Zakhelikhaya project.
This initiative aims to tackle South Africa’s severe affordable housing crisis
The Zakhelikhaya project stands as a beacon of hope amidst the nation’s pressing housing issues, with over 2.4 million households currently registered on the National Housing Needs Register. A large portion of these are concentrated in Gauteng, the economic heart of the country.
The initiative is not just about constructing houses but also providing a foundation for financial security and community stability.
Customizable solutions for first-time homebuyers
One of the unique aspects of the Zakhelikhaya project is its focus on customizability and affordability.
Prospective homeowners can choose from a variety of house plans that align with their personal preferences and financial situations, with options available for first-time buyers earning between R3,501 and R22,000 per month. This initiative ensures that affordable housing is not just a concept but a reality accessible to a broader demographic.
Mimi Masala, a divisional director at Cashbuild, highlighted the transformative potential of the project, stating,
“Zakhelikhaya empowers our customers to realize their dreams of homeownership, contributes to the alleviation of the massive housing shortage in South Africa, and fosters stability and prosperity within communities where we do business across South Africa.”
Partnerships enhance affordable housing access
The collaboration is comprehensive, combining the financial muscle and banking expertise of Capitec, the construction and materials specialization of Cashbuild, and the housing subsidy support through the NHFC’s First Home Finance subsidy.
This synergy simplifies the often-complex process of financing and building a first home, making it more streamlined and accessible.
April Baloyi, the divisional executive of emerging markets at Capitec, expressed pride in Capitec’s role, noting,
“Capitec Bank has been a leader in this market for some time, and we have products to match, making it possible to partner with Cashbuild to service this gap market by bridging the financial shortfall that at times may arise for clients during the home construction process.”
In addition to their collaborative efforts, Capitec has reinforced its commitment to developing the affordable housing market by entering into a Memorandum of Understanding with the National Housing Finance Corporation SOC, promising continued support and development in this sector.
The Zakhelikhaya project is more than just a housing scheme—it is a major step forward in resolving the housing affordability crisis, offering tangible solutions to enhance the lives of many South Africans and stimulate economic growth in the region.
