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Promoting the construction of sustainable and affordable housing, commercial real estate and hotels
Proparco supports real estate projects that increase, enhance and diversify the supply of affordable housing for low-income and poor households in developing countries. It also works with commercial real estate and hotel operators to build sustainable, high-quality properties.
Urban development lies at the juncture of social, economic and environmental matters, and needs to be encouraged and structured in order to offer urbanites a quality living environment. Proparco supports businesses and institutions that promote innovative solutions for accessing housing, or dynamic local development and job creation as part of a sustainable and decarbonised strategy.
Financing and partnering the development of affordable housing
In emerging and developing countries, the private sector plays a key role in complementing public housing initiatives, as there is still a shortage of affordable housing for low-income populations. Proparco works to ensure a pipeline of diverse, high-quality housing tailored to the needs of local people and climate challenges. It targets partners who have demonstrated expertise in producing sustainable properties that are accessible to the general population.
Project focus - The key role of private players in providing access to affordable housing
In South Africa, Proparco granted a credit line for an amount equivalent to €10 million to TUHF in 2022. This structure finances the needs of small property developers who wish to renovate derelict housing in city centres and convert it into affordable housing. Part of Proparco's financing is being used to extend this original model to townships – the old ghettos used to house non-whites during apartheid.
Encouraging the development of a sustainable hotel sector that meets international standards
One factor in regional attractiveness – a hotel sector that meets international standards – also has a positive impact on training and employment, mainly benefiting young people and women. Working alongside local banks, Proparco gives priority to business hotels built in urban areas – whose developers have demonstrated their ability to build and operate such properties – that help strengthen the economic fabric and create an attractive environment for international investors.
Project focus - Contributing to a strong and resilient hotel sector in sub-Saharan Africa
In 2021, IFC (International Finance Corporation) and Proparco granted an US$80 million loan to the Kasada investment platform, which aims to build a strong and resilient property portfolio in sub-Saharan Africa with ambitious energy efficiency targets.
Read the article in our Private Sector & Development magazine #40 : Improving energy efficiency and minimising the effects of climate change in the hospitality sector, by Ram Lokan, Chief Investment Officer, Kasada Capital Management
Supporting the construction of high-quality properties for the commercial and tertiary sectors
Office premises, shopping centres, warehouses: Proparco is committed to developing sustainable urban infrastructure, with a focus on supply-constrained areas. The challenge is to stimulate international investor interest in projects that comply with environmental standards and have the best possible carbon footprint.
Project focus - Supporting the development of sustainable urban infrastructure in Rwanda
In 2023, Proparco and IFC granted $35 million worth of financing to the Duval Group to build and operate a mixed-use real estate development in Kigali, Rwanda, comprising a shopping and leisure area, a hotel residence and an office building. The project will create more than 700 local jobs.
Focus
The key role of private players in providing access to affordable housing in South Africa
Published on december 20 2023
Further reading
Private Sector & Development #40 - Sustainable cities: how private sector players are gearing up
Published on december 20 2023
Special issue - The hotel and tourism industries in Africa: a booming market
Published on july 1 2018
Our news
CRRH-UEMOA Issues Social Bond Dedicated to Affordable Housing, with Proparco as Anchor Investor
Published on june 3 2025
PFO Immobilier is developing a portfolio of energy-efficient real estate assets in Abidjan
Published on may 20 2025
Improving energy efficiency and minimising the effects of climate change in the hospitality sector
Published on march 5 2024
