Johannesburg, South Africa, 9 October 2026 – The sod turning event of the Student Housing Infrastructure Programme (SHIP) at the Tshwane University of Technology (TUT) Pretoria campus on 5 October, signalled action and progress. SHIP was established to address the acute shortage of safe, affordable and academically supportive student housing across South Africa’s public universities and TVET colleges. Rooted in the findings of the Ministerial Review Committee and subsequent policy frameworks, SHIP seeks to deliver 300,000 new student beds over a 10-year period, thereby transforming the living and learning environment for students nationwide.
Through a programmatic approach, SHIP brings together the Department of Higher Education and Training (DHET), the Development Bank of Southern Africa (DBSA), National Treasury (NT), and institutional partners to mobilise funding, standardise delivery models and accelerate implementation. The programme’s overarching goal is to ensure that student housing becomes a catalyst for academic success, social equity and national development, while promoting collaboration between government, financiers and the private sector.
Launched by the DHET in July 2016, SHIP has successfully delivered over 11,000 new student beds during its pilot phase (Phase 1). Planning for Phase 2 commenced in 2020, with Tshwane University of Technology (TUT) among the 12 institutions (six universities and six TVET colleges) included in this phase. As of 15 June 2026, the TUT project is confirmed to be fully funded, while other Phase 2 projects remain at various stages of financing.
Representing IFISA and the DBSA at the groundbreaking event, Mohale Rakgate, Acting Head of IFISA, said: “We are driven by the need to address the substantial backlog in student accommodation. Through innovative, blended finance solutions and strong partnerships between government, higher education institutions and development finance institutions, we have been able to mobilise the resources needed. This is a model we want to replicate to deliver dignified, safe, fit-for-purpose student accommodation at greater speed.”
Through the National Treasury project preparation funding, the DBSA undertook the bankable feasibility studies that unlocked the Budget Facility for Infrastructure (BFI) grant funding as well as the senior debt in the amount of R 290m. In recognising the prevailing student bed shortage which cannot be resolved by the public sector alone, DBSA’s participation in the purpose-built student accommodation sector extends beyond SHIP and university-owned on-campus accommodation.
The Infrastructure Finance and Implementation Support Agency (IFISA), formerly known as the Infrastructure Fund, was instrumental in supporting the DBSA SHIP project team and DHET in unlocking the Budget Facility for Infrastructure (BFI) grant funding amounting to R337 million from the National Treasury. This solidifies the blended finance approach that Government has adopted in financing the broader programme.
With funding secured, the TUT project has now advanced to implementation. A Design, Build, Operate and Maintain (DBOM) service provider was appointed in November 2025 and Construction is preparing for site establishment. The project will deliver:
- 1,800 student beds at the Pretoria‑West campus
- 1,100 student beds at the Soshanguve South campus
- 600 student beds at the Ga-Rankuwa campus.
Private developers and sponsors alike can approach the DBSA and benefit from comprehensive client value proposition comprising project preparation facilities, senior debt and equity funding solutions as well as project implementation through the DBSA’s Infrastructure Delivery Division.
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About the DBSA
The Development Bank of Southern Africa is one of the leading development financial institutions on the continent. Our primary purpose is delivering impactful development finance solutions that ignite transformative change in South Africa and on the rest of the African continent. Improving the quality of life of people in Africa is the fundamental focus of our development impact. We aim to bend the arc of history towards shared prosperity through multifaceted investments in sustainable infrastructure and human capacity.
Our product solutions span all phases of the infrastructure development value chain from infrastructure planning and project preparation, across a range of financing and non-financing investments to infrastructure implementation and delivery. Our primary areas of focus include Energy, ICT, Transport, Water and Sanitation. Our secondary area of focus includes Education, Housing and Health.