The European Council’s newly announced €4.7 billion investment package for South Africa should prioritise green public housing initiatives to maximise its impact on sustainable development, according to Gap Infrastructure Corporation (GIC) CEO Roelof van Den Berg.
The funding, equivalent to some R98 billion, comes through the EU Global Gateway Investment Package, and represents a critical opportunity to help the country achieve its sustainability goals.
“The EU investment is quite sizeable: it’s equivalent to nearly a tenth of government’s R1.03 trillion budget for infrastructure development over the next three years.
“While the package encompasses various targets including low-carbon transition efforts, connectivity infrastructure, and pharmaceutical industry development, we believe that green infrastructure development – especially public housing – should be given special consideration to benefit our nation’s more vulnerable communities,” he says.
As such, van den Berg and GIC are advocating for the allocation of a substantial portion of this investment toward environmentally sustainable public housing initiatives, aligning with both South Africa’s sustainability goals and the EU’s vision for this investment.
A roadmap for green housing development
Public housing developments are often viewed through the lens of immediate affordability, focusing on low-cost materials and basic services. He argues that, seen together with renewed state commitment to turning South Africa into a construction zone, this EU investment offers an opportunity to go another step further, building low-cost homes that are more efficient, less wasteful, have a smaller impact on the environment, and are more durable.
In practice, this could involve setting up dedicated green housing funds and specialised public-private partnership (PPP) frameworks that incentivise developers to embrace green building principles.
GIC recommends four important steps to achieve this goal:
- Require the integration of green technology in new public housing projects during the tendering phase;
- Fast-track approvals for green housing projects to ensure prompt implementation and improve investor confidence;
- Offer tax rebates or density bonuses for projects exceeding sustainability benchmarks;
- Establish a centralised knowledge hub to share best practices in eco-friendly, low-cost construction among public projects and private development partners.
Furthermore, municipalities could receive technical and capacity-building support to ensure that integrated planning, design, and long-term management remain aligned with sustainability goals. Local building materials suppliers should also be encouraged to modernise their operations to supply the sector with certified low-carbon alternatives.
The Department of Public Works’ Green Building Policy underscores that retrofitting existing structures to improve resource efficiency must likewise remain a priority. Although retrofits can be more complex than new builds, effective retrofitting can unlock immediate benefits, particularly in older communities where outdated systems perpetuate high utility costs and poor indoor living conditions.
The real-world impact on communities
“Large-scale rollouts of green public housing initiatives could reshape the social fabric of entire neighbourhoods by bringing clean energy, improved living conditions, and meaningful economic opportunities to those who need them most,” says van den Berg.
When solar panels and water-efficient fixtures are installed at scale in public housing developments, for instance, communities rely far less on traditional power and water supplies, helping to ensure that vulnerable households benefit from modern, reliable, cost-effective services. The result is safer, less wasteful, more comfortable living environments that simultaneously reduce demand pressure on local infrastructure.
“Ultimately, however, an initiative of this nature will hinge on close collaboration between government and various partners in the construction sector to secure the successful implementation of these high-impact projects over the medium-term. Government’s leadership in this domain, supported by the EU’s investment commitments, will help promote even more opportunities for vulnerable communities to improve their lives and those of their children, while bringing the country another vital step closer to its sustainability goals,” he concludes.