IFC, Proparco, Bopa Moruo, and RMB Ventures Partner to Boost Access to Affordable Student Housing in South Africa

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Johannesburg, South Africa, March 2, 2022 — To increase the supply of safe, affordable, quality student housing in South Africa, particularly for students from low-income households, IFC today announced a partnership with Proparco, the French development finance institution, and Bopa Moruo Private Equity and RMB Ventures.

The four today announced a combined ZAR 516 million (about $36 million) equity investment in Respublica Group to help the company develop high-quality, affordable accommodation for thousands of students, and strengthen its environmental and social standards. Respublica Group owns and operates Respublica Student Living, South Africa's leading student accommodation provider.

IFC, Proparco and, Bopa Moruo Private Equity, jointly with RMB Ventures through Bopa Ventures, will each provide Respublica with equity capital of ZAR 181,500,000 (~US$12 million equivalent), which plans to add almost 5,000 new beds to campuses across South Africa by 2025 and almost 9,000 by 2028, especially to locations reporting the highest demand.

In designing and building new, resource-efficient accommodation, Respublica will be supported by IFC's Excellence in Design for Greater Efficiencies (EDGE) program. EDGE green buildings certification makes it faster and easier to build and brand more environmentally friendly structures.

South Africa's student housing market has struggled to keep pace with growing tertiary education enrollment numbers, which have more than doubled since 1994. Students from low-income households are particularly affected by the deficit. Developing affordable student housing in South Africa is, therefore, critical to expanding access to quality tertiary education.

"A partnership with global institutions like IFC and Proparco is an exciting development that provides significant credibility to our business going forward and further reinforces the positive social impact that Respublica contributes toward education and young people in South Africa. Furthermore, our partnership with astute local private equity players like RMB Ventures and Bopa Moruo, allows Respublica to advance its economic transformation and participation goals," said Craig McMurray, Chief Executive Officer at Respublica Group.

"We are very proud to support Respublica and the development of sustainable student accommodation in South Africa, which is key to inclusive and equal access to higher education in the country," said Samuel Touboul, Senior Investment Officer at Proparco. "Respublica has an unchallenged role providing housing to South Africa's young population and supporting their access to higher education and academic excellence. We have full confidence in its talented management and employees to provide high-quality and affordable accommodation services to an ever-greater number of South African students."

"RMB Ventures and Bopa Moruo are excited to partner with IFC, Proparco and Respublica Group in an investment that not only offers attractive investment features, but one that will also yield substantial positive societal outcomes,' said Eutychus Mbuthia, Lead Transactor at RMB Ventures and Nthime Khoele, co-Managing Partner at Bopa Moruo Private Equity, on behalf of Bopa Ventures. "The mix of local institutional capital, BEE capital, and foreign direct investment capital is ideal for Respublica to help unlock a pipeline of development opportunities to provide quality affordable student housing to an under-served market and growing student population. We have confidence in the management team's ability to successfully deliver an affordable quality product to the market."

"Supporting human capital development, including through improved access to student accommodation, is vital to spurring sustainable and inclusive economic growth in South Africa," said Adamou Labara, IFC's Country Manager for South Africa. "Our aim is to ensure that all students in South Africa–particularly underserved students from low-income households–have access to high-quality, safe, affordable housing from which to pursue their studies."

The investment is aligned with the World Bank Group's Country Partnership Framework for South Africa, which supports private student housing to help students better prepare for the job market.

About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.

About Respublica Group
Respublica is South Africa's leading developer, owner and operator of purpose-built student accommodation (PBSA). Respublica Student Living is a national brand that provides a home to over 9,000 students in both public and private universities across the country. As a specialized end to end service provider in the student accommodation industry, Respublica performs all aspects of property development, asset management, residence operations, and student administration. Respublica provides a diversified offering of student bed types to meet all levels of affordability and contracts extends from private students to corporate bursars as well as university head leases. Respublica will continue to leveraging its specialist capabilities in the PBSA sector to deliver its growth strategy and further increase market share, while reinforcing its reputation as the most trusted brand of student housing for students, parents and universities in South Africa.

About Proparco
Proparco is the private sector financing arm of Agence Française de Développement Group (AFD Group). It has been promoting sustainable economic, social and environmental development for over 40 years. Proparco provides funding and support to both businesses and financial institutions in Africa, Asia, Latin America and the Middle East. Its action focuses on the key development sectors: infrastructure, mainly for renewable energies, agribusiness, financial institutions, health and education. Its operations aim to strengthen the contribution of private players to the achievement of the Sustainable Development Goals (SDGs) adopted by the international community in 2015. To this end, Proparco finances companies whose activity contributes to creating jobs and decent incomes, providing essential goods and services and combating climate change. For a World in Common.
For further information: www.proparco.fr and @Proparco

About Bopa Moruo
Bopa Moruo is a South African mid-market private equity firm, with a value-oriented investment approach, seeking to buy, build & grow mid-market businesses led by strong management teams. Bopa Moruo, a 100% black-owned firm, was founded by Mr Nthime Khoele and Mr Boitumelo Tlhabanelo, and has a track record of successful private equity investment execution and management across a wide range of industries, and a demonstrable record of partnering with other reputable private equity and investment firms.

About RMB Ventures

RMB Ventures is a leading South African based private equity investor. As a subsidiary of FirstRand Limited, the largest financial services group in Africa by market capitalisation, RMB Ventures is an on-balance sheet provider of private equity capital and has invested in over 40 transactions since the mid-1990s. The current portfolio consists of over 15 direct investments, plus a number of fund investments with market value in excess of R8bn. RMB Ventures invests predominantly in established African businesses with demonstrated track records. Our investment philosophy is centered on aligning with management, thereby matching our returns with those of management. Our purpose is to empower people, teams and businesses to achieve their full potential.