EIB finances US$ 209 million South African project

The European Investment Bank (EIB) has pledged € 150 million (US$ 209 million) to South Africa in support of the country's affordable housing and infrastructure programme.

The initiative will see 34000 new homes built under 30 different projects around the country. Eligible investments include planning, design and construction, as well as preparatory measures such as studies and site preparation.

The EIB said it worked closely with private South African banks Standard Bank, ABSA and Nedbank, as well as public institutions the Development Bank of Southern Africa and the National Housing Finance Corporation, to reach the financial agreement.

The EIB is the long-term lending arm of the European Union. It has committed to providing € 900 million for projects in South Africa between 2007 and 2013.