Partial credit guarantees (PCGs) provided by Shared Interest, are helping local developers in Cape Town to finance and build dignified housing for low- and middle-income communities, overcoming long-standing barriers to credit.
Recently, Shared Interest hosted a roundtable and guided site visit to affordable housing projects in Khayelitsha and Mandalay funded through guaranteed loans, demonstrating how guarantees are unlocking capital for small and medium-sized enterprises (SMEs) and fueling inclusive urban development in communities where traditional mortgages are hardly accessible.
“Affordable housing is a pressing need, and we have capable developers ready to deliver; what they lack is capital,” says Lusanda Netshitenzhe, chief executive officer of TUHF21, an organisation lending to affordable housing developers across South Africa.
“With a PCG, we can say yes more often. It gives us the confidence to lend to entrepreneurs building real value in their communities.”
Credit guarantee model reduces risk
Shared Interest’s credit guarantee model reduces risk for microfinance institutions, banks, and development lenders by covering a portion of potential losses.
This enables them to finance early-stage and underserved entrepreneurs who may lack collateral, lengthy track records, or traditional financial profiles, particularly in the housing sector, where impact and affordability matter most.
“In Cape Town, we have partnered with Lead Capital to guarantee their affordable loans to BitProp, which are targeting and turning female homeowners into landlords.
"Through our partnership, BitProp is building and managing 72 units for 12 women, increasing the value and earnings from their properties.
"We are in negotiations with TUHF to replicate this successful pilot with Lead in Johannesburg,” says Ann McMikel, executive director of Shared Interest.
Impact of guarantee
Shared Interest's partial credit guarantee has seen $34m in guarantees issued, which has unlocked $132m in SME loans, reaching over 2.3 million beneficiaries, with 60% being women and youth.
A 2025 goal is to deploy $8m to $11m in guarantees to support high-impact sectors such as housing, agriculture, fintech, and climate resilience.
Expand SME financial inclusion
The event also featured a panel discussion at 22 on Sloane SME Campus on how PCGs function to expand SME financial inclusion.
The panelists included PCG experts such as:
- Stacy Manvitz, vice chairwoman & co-chair, Credit Risk Committee, Shared Interest Board
- Alex Area, chief investment officer, AFAWA, African Development Bank
- Lusanda Netshitenzhe, CEO, TUHF21
- Dorcas Onyango, Shared Interest global programs director & architect of the PCG Convenings
- Joyce Masi, managing director, Kwheza, Shared Interest implementing partner in Malawi
The event drew participation from banks, microfinance institutions, and SME empowerment ecosystem actors.
“Partial credit guarantees are catalytic in bridging the risk gap.
They allow financial institutions to extend credit to SMEs that would otherwise be considered too risky, particularly women-led businesses, while maintaining portfolio quality,” says Area.
“They are one of the most effective tools to expand financial inclusion and build more equitable economies.”
Since 1994, Shared Interest has been working to drive inclusive development in previously disadvantaged communities in Southern Africa by unlocking opportunities where capital was previously out of reach.
“In Cape Town, property developers and homeowners are able to access finance to develop affordable homes for working families, creating jobs and helping to reshape communities,” says Manvitz.
