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Proparco has partnered with IFC, Bopa Moruo Private Equity and RMB Ventures through an equity investment to support Respublica Group with the development of high-quality and affordable accommodation for thousands of students.
Client presentation

Respublica Group was set up in 2009 and is one of the main suppliers of student accommodation in South Africa. It has some 9,000 beds on 7 university campuses in the country’s 4 main cities, with a strong brand image and proven operational performance. 
Respublica’s residences are recognized for the quality of the accommodation provided, its affordable price (over half of the students accommodated are scholarship holders) and all the additional services offered to students via the dedicated Res Life Program (tutoring, mentoring, prevention, employability assistance, sports and cultural activities...).

Project description

Proparco has approved a USD 25m equity investment in Respublica Group, in several tranches, in order to acquire a minority stake in the capital and finance the Group’s development projects (including Greenfields, Brownfields and acquisitions and constructions of new residences).

Project impact

The expected effects and impacts on development of this project are as follows: 

  • Access to affordable and quality accommodation for 1,240 university students the first year after Proparco’s investment, in the context of a capacity crunch in South Africa which contributes to high dropout rates, particularly for students from disadvantaged backgrounds. 
  • Support for some 1,100 jobs over the next 5 years, including 220 jobs created at Respublica. Gender equality is also a focus, with 55% of Respublica’s management positions held by women and specific procedures to promote equal opportunities for all staff (gender, ethnicity, etc.).
  • More generally, a contribution to the development and institutionalization of a strong and credible private sector player, able to compensate for the current deficiencies in the provision of student accommodation by public and private universities in South Africa.

The project should thereby contribute to the achievement of SDGs 4 “Quality education”, 5 “Gender equality”, 8 “Decent work and economic growth” and 10 “Reduced inequalities”.  

Download the project sheet

This information is given at the time of signature, without prejudice to any developments in the operation/project 
02/08/2022
Date of signature of the project
Gender equality,
Education
Sectors
South Africa
Location
Equity investment
Financing tool
24 000 000 Euros
Amount of funding
USD 25m Equity Investment
Financing details
Respublica Group (Pty) Ltd
Client
South Africa
Head office country
PZA1111
Project number
CES