Africa’s largest single phased purpose-built student accommodation facility has opened in Cape Town, South Africa, providing housing for up to 3,000 students, primarily from low-income families. A South African student described it as “an exceptional living experience”. The building’s construction was co-financed by the Danish SDG Investment Fund, an innovative fund managed by IFU with capital commitments from public as well as private institutional investors.
As one of Africa’s most vibrant metropoles, Cape Town and its universities and colleges attract thousands of young South Africans aspiring to become doctors, lawyers, economists, engineers, and more. However, despite their diverse fields of study, these students face a common challenge: a severe shortage of affordable student housing in South Africa.
A recent report estimates a deficit of housing for over 500,000 students, a figure which could rise to nearly 800,000 by 2025. To tackle this issue, the Danish SDG Investment Fund has invested in SASAII, a platform investing in and owning student accommodation in South Africa. SASAII is dedicated to increasing the availability of student housing, particularly for disadvantaged students. Just next to the Cape Town central train station and close to several universities and colleges, SASAII has opened Units on Cape Station – Africa’s largest single phased student housing complex, accommodating more than 3,000 students. This was a two-year construction process completed on time and budget.
For comparison, Øresund College, the largest student accommodation building in the Nordic region, houses approximately 1,500 students.
Housing crisis: A barrier to education
About 90% of South African students need accommodation near their educational institutions. The lack of capacity and high rental prices force many into long commutes, unsafe living conditions, or even dropping out of school. Therefore, access to affordable housing is crucial, especially for students from low-income families.
“Rise Student Living Cape Town offers an exceptional living experience with a wide range of facilities. As a resident on the 11th floor, I appreciate the study labs and collab lounges available on all floors, providing excellent spaces for individual and group study,” said Olwethu Khanyile.
Most students residing in the building rely on the National Student Financial Aid Scheme (NSFAS) for accommodation subsidies. However, these subsidies are insufficient to cover the high rental costs in major cities, which range from $500 to $650 per month. In contrast, rent at SASAII’s purpose-built student housing buildings can be as low as $275 per month, making student life easier and more affordable.
Expanding across South Africa
In addition to the new building in Cape Town, SASAII has recently opened student housing facilities in Johannesburg and Pretoria and have additional projects in the pipeline. All co-financed by the Danish SDG Investment Fund.
“By providing students with quality housing in a safe and secure environment close to their place of study, we are contributing to making access to education more equal in one of the world’s most unequal countries. SASAII focuses on students from disadvantaged backgrounds, aligning perfectly with IFU’s investment and impact strategy to foster more just and inclusive societies in developing countries,” said Emil Sierczynski, Investment Director at IFU.
With facilities in Cape Town, Johannesburg, and Pretoria, SASAII now accommodates over 5,000 students. By 2030, SASAII aims to house more than 10,000 students, easing the pressure on student housing and supporting more students in completing their education.
IFU first invested in SASAII in 2021.