Standard Bank Secures USD 250 M From IFC To Boost Green Housing In South Africa

In a major push toward sustainable development, Standard Bank South Africa has secured a USD 250 M loan from the International Finance Corporation (IFC) to expand green financing in the real estate sector. The seven-year unsecured loan is expected to make eco-friendly housing more accessible while helping property developers overcome the steep upfront costs of sustainable construction.

At its core, the initiative aims to break down financial barriers that often prevent developers from investing in energy-efficient materials, water-saving systems, and green certification. Many developers and homebuyers recognize the long-term benefits of green buildings—lower electricity and water costs, increased property value, and a reduced carbon footprint—but struggle with the initial expenses. With this funding, Standard Bank plans to offer tailored financial solutions that encourage sustainable construction without adding financial strain.

The funds will support greenfield projects across industrial, retail, and residential sectors, with a strong emphasis on affordable housing. As South Africa’s cities expand and urbanization accelerates, the need for resource-efficient homes is greater than ever. Green housing is no longer just about environmental responsibility—it’s a practical solution to rising utility costs and ongoing energy supply challenges.

“South Africa’s property sector presents immense growth potential, and with rising urbanization, the demand for sustainable, resource-efficient developments has never been greater,” says Kenny Fihla, Deputy CEO of Standard Bank Group and CEO of Standard Bank South Africa. “This collaboration allows Standard Bank and its clients to meaningfully grow a more sustainable real estate landscape.”

But this is more than just a loan. The IFC funding is also accompanied by a performance-based incentive, backed by the UK’s Department for Energy Security and Net Zero. The incentive will help developers and homeowners offset the cost of green certification, making it easier to meet international sustainability standards.

This partnership is part of a broader strategy by both Standard Bank and IFC to scale up green financing in emerging markets. Standard Bank will leverage the IFC’s Market Accelerator for Green Construction (MAGC) program, which is designed to fast-track the development of certified green buildings, particularly in high-impact areas like affordable housing.

For the IFC, this initiative aligns with its mission to support sustainable and inclusive growth. “IFC is pleased to expand its collaboration with Standard Bank, our longstanding partner in South Africa, to help widen access to finance for certified green buildings,” says Cláudia Conceição, IFC’s regional director for Southern Africa. “As we continue to champion innovative blended finance solutions for high-impact segments—such as affordable housing and women homeowners—IFC is helping to drive a more sustainable future while supporting economic resilience.”

Standard Bank is no stranger to the green financing space. Already a dominant player in residential home loans, the bank has seen rapid growth in its green home loan portfolio over the past two years. These certified homes adhere to strict environmental standards, significantly cutting energy and water consumption while offering long-term savings to homeowners.

With the new IFC funding, Standard Bank aims to cement its position as South Africa’s leading financier for sustainable housing. The bank’s sustainability strategy aligns with the growing market demand for green real estate solutions, especially as energy and water security remain critical challenges.

For homebuyers, this means more opportunities to own a home that is both environmentally friendly and cost-effective. For developers, it’s an opportunity to build for the future without being held back by high certification costs. For Standard Bank, it’s another step toward its vision of driving sustainable development while creating long-term financial value.

As South Africa grapples with energy shortages, rising utility costs, and urban expansion, this kind of investment is becoming increasingly critical. Standard Bank’s latest partnership with IFC signals a shift toward a greener, more financially inclusive real estate sector—one where sustainability is no longer an option but a standard.