A new generation of property developers in Cape Town is delivering much-needed affordable housing, supported by finance they were previously unable to access. Backed by Partial Credit Guarantees (PCGs) from non-profit organisation Shared Interest, small and medium-sized developers are now able to secure loans to build decent, affordable homes for lower- and middle-income communities.
In April, Shared Interest hosted a roundtable and site visit that brought together financial inclusion leaders from across Africa and the US, alongside local lenders, developers, and housing stakeholders. The event included guided visits to housing projects in Khayelitsha and Mandalay, which are being funded through guaranteed loans.
The visits offered a clear look at how credit guarantees are helping unlock capital for small developers, fuelling more inclusive urban development in areas where traditional mortgages are out of reach for most. The initiative marks a step forward in tackling South Africa’s housing shortage through more equitable access to finance.
“Affordable housing is a pressing need, and we have capable developers ready to deliver, what they lack is capital,” said Lusanda Netshitenzhe, CEO of TUHF21, an organisation lending to affordable housing developers across South Africa. “With a PCG, we can say yes more often. It gives us the confidence to lend to the entrepreneurs who are building real value in their communities.”
Shared Interest’s credit guarantee model reduces risk for microfinance institutions, banks, and development lenders by covering a portion of potential losses. This enables them to finance early-stage and underserved entrepreneurs who may lack collateral, lengthy track records, or traditional financial profiles, particularly in the housing sector, where impact and affordability matter most.
“In Cape Town, we have partnered with LEAD Capital to guarantee their affordable loans to BitProp, who are targeting and turning female homeowners into landlords. Through our partnership, BitProp is building and managing 72 units for 12 women, increasing the value and earnings from their properties. We are in negotiations with TUHF to replicate this successful pilot with LEAD in Johannesburg,” said Ann McMikel, Executive Director of Shared Interest.
The day also featured a panel discussion at 22 on Sloane SME Campus on how PCGs function to expand SME financial inclusion. The panelists included PCG experts such as:
- Stacy Manvitz, Vice Chairwoman & Co-Chair, Credit Risk Committee, Shared Interest Board
- Alex Area, Chief Investment Officer, AFAWA, African Development Bank
- Lusanda Netshitenzhe, CEO, TUHF21
- Dorcas Onyango, Shared Interest Global Programs Director & architect of the PCG convenings
- Joyce Masi, Managing Director, Kwheza, Shared Interest implementing partner in Malawi
The event drew participation from banks, microfinance institutions, and SME empowerment ecosystem actors, all eager to deepen their understanding of how PCGs de-risk lending while enabling entrepreneurs to deliver transformative projects.
“Partial credit guarantees are catalytic in bridging the risk gap. They allow financial institutions to extend credit to SMEs that would otherwise be considered too risky, particularly women-led businesses, while maintaining portfolio quality,” said Alex Area, Chief Investment Officer at AFAWA, an initiative of the African Development Bank. “They are one of the most effective tools we have to expand financial inclusion and build more equitable economies.”
Since 1994, Shared Interest has been working to drive inclusive development in previously disadvantaged communities in Southern Africa by unlocking opportunities where capital was previously out of reach.
“In Cape Town, this means property developers and homeowners are now able to access finance to develop affordable homes for working families, creating jobs and helping to reshape communities,” said Stacy Manvitz, Vice Chairwoman, Shared Interest Board.
