Bitprop

Long-term income for property owners.

Bitprop combines entrepreneurship, financial and social innovation to develop affordable, high-quality sustainable housing in South Africa's townships. Bitprop partners with township homeowners to develop four or six rental flats on their property. The homeowner leases Bitprop their land, and Bitprop provides its expertise and support to enable construction in three months. The rent generated by these rental flats is distributed from the first month, with the homeowner

receiving 15 percent of the gross monthly rental collected during the 10-year partnership. After 10 years, Bitprop steps out of the picture and 100 percent of the rental income goes to the homeowner. The homeowner always retains full ownership of the property and the flats. During the partnership period, Bitprop uses its share of the rental income to recoup invested capital and provide a market-related return to investors, creating a sustainable investment model.

A model that strengthens local communities

Bitprop was founded in 2019 with the belief that entrepreneurship combined with homeownership empowers people and contributes to sustainable, long-term solutions to a range of societal problems. At its core, the model uses entrepreneurship and innovation to empower people to develop sustainable income and create asset value for themselves and their families. We help homeowners in Cape Town’s townships transform their properties into income-generating assets and train them to run rental businesses in their backyards. In parallel, we train building contractors and their teams of craftsmen so that they can build to national standards, and in accordance with the requirements of the law, which rarely happens in township construction.

By sharing the rental income over a fixed period, the homeowner receives an immediate, stable income that improves their quality of life in the long term – without debt and high interest payments. It also allows homeowners to create a secure and comfortable retirement and a viable small business that can be inherited by the next generation. By focusing on existing but unutilised property in people’s backyards where the value potential is the greatest, Bitprop’s commercial model provides a way for capital to be used efficiently to develop individuals into sustainable entrepreneurs.

With a sustainable investment model, Bitprop attracts capital in Sweden, internationally and in South Africa to develop more property entrepreneurs, strengthening local communities and creating long-term financial security for a large number of families.

The year in brief

After five years in operation, we can demonstrate a proven, sustainable and scalable commercial business model that creates measurable social and environmental benefits while delivering market returns; something that several Swedish families and entrepreneurs have contributed to. Bitprop has now built 466 apartments and is close to reaching the milestone of 500 apartments.

Read more in our Five Years of Impact report.

Website

bitprop.com

Bitprop

Bitprop combines entrepreneurship, financial and social innovation to develop affordable, high-quality sustainable housing in South Africa’s townships. Bitprop partners with township homeowners to develop four or six rental flats on their property. The homeowner leases Bitprop their land, and Bitprop provides its expertise and support to enable construction in three months. The rent generated by these rental flats is distributed from the first month, with the homeowner

receiving 15 percent of the gross monthly rental collected during the 10-year partnership. After 10 years, Bitprop steps out of the picture and 100 percent of the rental income goes to the homeowner. The homeowner always retains full ownership of the property and the flats. During the partnership period, Bitprop uses its share of the rental income to recoup invested capital and provide a market-related return to investors, creating a sustainable investment model.