South Africa’s largest pension fund, Government Employees Pension Fund (GEPF), announced in a statement published on July 13 it will invest R10.5 billion ($730 million) in mortgage provider SA Home Loans to facilitate access to housing for government workers.

The investment will be done by pension fund manager Public Investment Corp (PIC), on behalf of GEPF, the same source added.

Out of R10.5bn, R5bn will finance loans contracted by government workers while R2bn will go to people with low revenues and R2bn will be used by SA Home Loans to extend its mortgages to other applicants. Last, R1.5 billion will go to affordable housing developers

“We can make good financial returns. Housing is the key to economic development, as it stimulates the demand for goods and services, and will help grow the economy,” said vice-chairman of the GEPD, Dries de Wit.

In South Africa where 27% of active population is unemployed, there are often social protests over the lack of decent housing and the slow pace of land reform since the apartheid ended in 1994.