The Mooikloof Smart City development has just received a major boost after its developer, Balwyn Properties, received R1 billion ($58 million) in equipment from the International Finance Corporation (IFC).
The facility will enable Balwyn to develop more than 14,500 affordable apartments for buyers in Tshwane, contributing to increasing the supply of affordable housing in the country.
The funding will facilitate the construction of apartments within Mooikloof Nord, a mixed-use lifestyle precinct located east of Pretoria and approximately 40km from Johannesburg.
Parts of the smart city have already been completed and some apartments are for sale. Other amenities are also available, including a padel court.
President Cyril Ramaphosa announced Mooikloof Smart City as one of the government’s Strategic Integration Projects (SIPs) in 2020.
The development had a total project cost of over R84 billion and was one of 62 SIPs gazetted that year.
This development should not be confused with another “R84-billion” city of Modelfontein which served no purpose.
Government involvement is aimed at creating jobs and promoting economic growth through infrastructure development.
As a development of the public-private partnership, the Department of Public Works and Infrastructure will pay for all external bundled service facilities such as water, sewerage, electricity, roads, and stormwater.
Balwin Properties said the development meets high environmental standards and will include energy-efficient appliances, water-saving equipment and insulation to minimize temperature fluctuations.
IFC’s Excellence in Design for Greater Efficiency (EDGE) tool certifies each apartment.
Balwin Properties noted that IFC’s financing facility should impact local communities and surrounding areas, fostering job creation and economic growth.
JSE-listed Balwyn added that the development will deepen local supply chains and improve business and residential infrastructure.
new housing trends
Approximately 66% of South Africa’s population lives in urban areas, and this proportion is expected to rise to 71% by 2030.
With this in mind, the private sector must play a meaningful role in completing the government’s construction efforts.
IFC’s investment is therefore consistent with the World Bank Group’s strategic focus in South Africa, which seeks to leverage private finance to address infrastructure challenges such as housing shortages.
IFC Southern Africa Regional Director Claudia Conceição said the investment will help expand access to quality housing for low- and moderate-income households.
“Housing is a catalyst for individual well-being, strong communities, and overall economic growth, making it a key priority for IFC,” said Conceição.
Steve Brooks, CEO of Balwyn Properties, said IFC’s support not only expands the availability of affordable housing, but also strengthens the company’s commitment to green building practices.
Balwin is the largest developer of EDGE Advanced certified apartments that deliver over 40% energy savings and 20% water savings.
“Homeowners can save money on their monthly utility bills by spending less and reducing their potential bond payments thanks to green bonds with most major banks,” Brooks said.
“Beyond housing, this investment will stimulate job creation, economic growth, local supply chains, strengthen surrounding communities and contribute to South Africa’s broader development goals.”
He added that Balwyn is consistently innovating when it comes to sustainable development and is considering applying for a Green Star District rating for its Mooikloof development.
Certain Balwyn properties are also eligible for green bonds, with customers eligible for interest rate reductions of 0.25% and 0.75% by most major financial institutions.
Quantified across mortgages, mortgage reductions saved customers R80 million on apartments sold in the group financial year ended 28 February 2025.
Mooikloof Smart City images and renderings
