bitprop highlights

Click on Bitprop in Summary for a snapshot of our key stats. For a closer look at our milestones, check out Bitprop Headlines, and view our journey from start to present in the Bitprop Timeline.
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18
Flats
4
Homeowners
3
Townships
5
Team members

Founded in 2019, Bitprop's first flats in Site B, Khayelitsha went live in May. By December, we had flats in iLitha Park and Makhaza too. This year was about testing our model, establishing a standard, cost-effective building design and learning how best to introduce our offering to the homeowners and tenants who needed it.

“An exciting time when we were trying to figure out what Bitprop was all about.”
- Dylan Walls, COO  
34
Flats
6
Homeowners
3
Townships
6
Team members

COVID brought significant challenges to the construction industry, but rental management continued as usual and the year gave us a good opportunity to focus on our systems and service delivery to our homeowners and tenants.

“COVID lockdown put the brakes on growth, but we focused on developing our design, systems, and relationships with our homeowners and tenants.”
- Jonathan Fisher, CEO
50
Flats
10
Homeowners
3
Townships
7
Team members

2021 was about improving the design of our flats. This was the year we took our lessons from previous iterations and established a standard design to use across our properties. It was also the year we started incorporating environmentally sustainable materials where possible.

“2021 was a turning point. The introduction of a construction manager and  an increase in quality control and systems through all parts of the business made all the difference.”
- Tashriq Abrahams, Architect
184
Flats
32
Homeowners
6
Townships
15
Team members

2022 was a big year for Bitprop. Our team doubled in size, we expanded to 2 new areas and we tripled the number of homeowners we were in partnership with. We grew from 50 flats to 184 flats, and also standardised the use of plastic-recycled materials in all foundations, slabs and brickwork on our properties.

“The organisation grew in leaps and bounds. This was one of the most amazing years, as our team grew and  we operated in an integrated manner.”
- Zandile Nkompela, Homeowner Acqusitions Manager
372
Flats
69
Homeowners
7
Townships
15
Team members

Another big portfolio increase - 102% growth - with a particular focus on quality, both in terms of the flats we built and the ongoing rental management services provided to homeowners and tenants. We also moved into Cape Town's oldest township, Langa.

“A very busy year with lots of excitement and many successful stories. Bitprop is slowly closing the housing gap in the Western Cape.”
- Nolitha Vanda, Homeowner Relationship Manager
506
Flats
95
Homeowners
7
Townships
18
Team members

In 2024, we reached a milestone of 500 flats. In March, we were nominated for and won the Innovation City Cape Town Impact Award for 2024, and we added Jason (Software Developer) and Razaan (Architectural Technologist) to the team. In response to significant demand from tenants, we launched our first 2-bedroom units, which have been well received.

"Our focus this year was converting semi-formal processes into efficient systems. We also experimented with the new 2-bedroom model and solar panels.
- Vunene Xiluvane, Marketing Manager

impact themes

Since starting in 2019, Bitprop has focused on 5 core impact areas: Sustainable Income Creation, Asset Value Formalisation and Growth, Environmental Sustainability in Township Construction, Township Job Creation, and Affordable Housing for Tenants. These themes are explored further in the articles below, touching on the stories behind each stakeholder and providing an in-depth study of each impact theme.

The South African Landlord: Unseen but Ferociously Entrepreneurial

Theme: Sustainable Income Creation

Homeowners gathered at our first Open House in Langa in 2023. (Photo: Tashriq Abrahams)
Informal, unregulated flats built in iLitha Park, Cape Town. (Photo: Reece Wakefield)
Borne out of the discriminatory land policies of apartheid South Africa and in the midst of high unemployment and lack of opportunity, backyarding as a phenomenon has grown rapidly in the 21st century. Across many income levels, the development and renting out of accommodation behind one’s primary house has been a key source of income for those without other opportunities, not least for Bitprop’s homeowners, who in seeking partnership with us, are hoping to achieve financial stability and wealth creation through the development of their personal land.
Under the Natives Land Act of 1913
(South African History Online)
With an average age of 51 years, the typical Bitprop landlord looks like a working mother, a pensioner or a budding entrepreneur who sees opportunity in the space in their backyard.
Many homeowners run informal property businesses (in the form of backyard rentals) as a means of generating a primary or supplementary income stream, but these are often informal and temporary structures that don’t meet safety or regulatory requirements.
Bitprop offers a formal and compliant alternative that turns their backyard, an idle or inefficient asset, into an income-generating property business.  
The average age of homeowners that Bitprop has partnered with is 51 years old, with the majority (58%) being employed. 30% are pensioners and 12% are unemployed.
Some of the homeowners who have partnered with Bitprop.
Our early partners were predominantly pensioners who saw Bitprop primarily as a way to earn an immediate additional income that matched or exceeded the state pension income.
A homeowner in iLitha Park, Khayelitsha, who began his partnership with Bitprop in December 2021. (Photo: Vunene Xiluvane, Marketing Manager)
Later on we partnered with a mix of retired, unemployed and working adults around and above the age of 50. Many of these partners saw Bitprop as an immediate supplementary income that was also an investment in their future pension income.
Most recently we have also partnered with younger working adults who see Bitprop predominantly as an investment in their and their children’s futures, with the additional benefit of an immediate supplementary income.
Homeowner income distribution before, during and after the partnership with Bitprop.
Note: categories defined by University of Cape Town's ‘Open Access Monograph: Marketing to the South African Consumer’:
Homeowners, many of whom were new to property management before partnering with Bitprop, bring a personal touch to their roles. For instance; in iLitha Park, two homeowners go above and beyond by offering childcare support to tenants in need, treating their tenants like family to maintain strong working relationships. This unique approach builds harmony and mutual respect, and encourages tenants to stay for a long time.  

Read more about the Bitprop landlord and how flats provide a form of stable Sustainable Income Creation by clicking the button below.

Bridging the Gap with Backyarding

Theme: Asset Value Formalisation and Growth

Percentage of properties with
additional dwellings by type

Percentage of properties in 150 m2 in iLitha Park, Khayelitsha, Cape Town that have additional dwellings behind the main house, by type (informal, formal and Bitprop flats).
Percentage of properties in 200 m2 in iKwezi Park, Khayelitsha, Cape Town that have additional dwellings behind the main house, by type (informal, formal and Bitprop flats).
Percentage of properties in 200 m2 in Langa, Cape Town that have additional dwellings behind the main house, by type (informal, formal and Bitprop flats).
For most township backyard rental flats, the primary intention is to sustainably generate income, as demonstrated under the ‘Sustainable income creation’ impact theme, but by partnering with Bitprop, significant enhancement to asset value can occur too, without any capital utilised by the homeowner. In the formal property market, this is normally where the main reward is experienced - driven by the demand for living space and a property market where asset value increases over time.
Informal backyard shack (left), informally built brick flats (middle), and Bitprop flats (right).
In townships, this inherent aspect of property ownership is largely unrealised as there is a lack of formalisation of ownership and an inaccessible development process1. Without accurate title deeds, one cannot formally obtain value from a property through sale or mortgaging, and without accurate building plans, one cannot sell or borrow against the value of new developments on the property.
Six Bitprop flats completed in 2023 in Eersterivier, Cape Town. (Photo: Vunene Xiluvane, Marketing Manager)
The area studies in iLitha Park, iKwezi Park and Langa on the left show how many properties have backyard structures in them, and how Bitprop has been able to slot in when the property owners have been unable to develop quality rental flats alone. Through this formalisation process, we have helped each homeowner participate in the formal property market.
Family in Eersterivier thanking Bitprop after their flats were completed. (video: Anika Hanekom, Architect)
Bridging this gap is crucial to unlocking its potential as an income and wealth creation mechanism, as well as a formal, sustainable housing solution. By focusing on quality construction and oversight, backyard housing can become a regulated, scalable option that meets the needs of urban communities while fostering economic empowerment.

Sustainable Design Isn’t Just for the Rich

Theme: Environmental Sustainability in Township Construction

The process through which the eco-aggregate used in Bitprop flats are made.

All types of plastic are collected in and around Cape Town and transported to CRDC.
Plastic is shredded down to a size that allows it to be processed with the CRDC's propriety method.
The plastic is processed into the eco-aggregate called Resin8, as seen above.
The eco-aggregate is mixed into the concrete at a specified ratio that results in bricks with better fire safety, acoustic and thermal properties.
The construction industry contributes significantly to environmental degradation, producing 5–8 million tonnes of waste annually in South Africa and accounting for 40%–50% of global CO2 emissions. With the country ranked 13th globally for construction-related emissions, innovative approaches are essential to reducing this impact.
To address these challenges without compromising on quality, we've replaced traditional bricks with an eco-aggregate (Resin8) solution, and have partnered with a local company that develops floor slabs that incorporate recycled polystyrene (Envirolite), reducing reliance on depleting natural resources like stone and sand. These materials offer superior fire safety, acoustic properties, and thermal qualities.
A 3D section showing how CRDC's Resin8 and Envirolite;s floor slabs are incorporated into a Bitprop flat.
Sustainable technology may often be overlooked in affordable design because of the costs involved, but through innovation and scale we’ve been able to introduce eco-friendly materials as they’ve become locally available, proving that sustainability can be achieved incrementally even in a very low-cost environment. Eco-aggregates only increase our building costs by around 3%.
Partnering with a fellow Capetonian startup, SeaFire, Bitprop has installed solar across 3 of its properties in Cape Town. (Photo: Fredrik von Baumgarten)
Our first solar-powered properties mark another milestone in providing township communities with access to sustainable technologies. Solar provides a sustainable electricity source that insulates the properties from the electricity blackouts that occur periodically in South Africa, and helps reduce strain on the national electricity grid. The development of backyard property can, in general, cause significant strain on the power grid and the use of solar mitigates this risk significantly. During 2025, solar electricity setups will become part of Bitprop's standard design.
Environmental concerns are often secondary in townships, where immediate issues like food security and safety dominate. Through gradual innovation, however, Bitprop is demonstrating that sustainable construction can complement economic and social priorities, even in low-cost development. Read below for more about the sustainable measures we have implemented, and our partners that help us achieve this.

Township Construction: Blending the Informal & Professional

Theme: Township Job Creation

Construction crew arriving at a property in iLitha Park to begin construction in 2022. (Photo: Reece Wakefield)

From Rideshare Driver to Maintenance Manager

Bitprop’s search for an improved maintenance solution led to an unexpected yet remarkable discovery. While riding to work one morning, our Rental Manager, Buhle, struck up a conversation with her rideshare driver, Phumlani. She learned he had been a skilled technician before losing his job and turning to ridesharing as a new source of income. Buhle quickly saw his potential and took down his details.
Phumlani Tyali , Bitprop's Maintenance Manager, discussing maintenance issues with his maintenance team. (Photo: Vunene Xiluvane, Marketing Manager)
By the time she arrived at the office, Buhle had already started discussions with the team. Soon after, Phumlani was hired as Bitprop’s Maintenance Manager. and took full control over the management of maintenance tickets and repairs of all flats. Today, he operates the maintenance division as an independent business, managing a team of 7 employees.
Phumlani Tyali's maintenance team: from left to right, Mawabo, Sinethemba, Sango and Baloyi at the back.(Photo: Vunene Xiluvane, Marketing Manager)
This has dramatically improved maintenance quality and turnaround times as we have scaled. With over a year of management experience with us now, Phumlani’s business continues to thrive, showcasing how entrepreneurial opportunities can emerge in the most unexpected ways.

Women in Construction

Construction Manager, Ziyanda Mjobo, handing over newly completed flats to a homeowner in Eersterivier. (Photo: Tashriq Abrahams)
The construction industry remains male-dominated, with women comprising only 15.7% of the workforce, according to a 2020 StatsSA study. Barriers such as cultural biases and limited access to education and opportunities contribute to this disparity. Yet at Bitprop, women are breaking the mold. Our construction department is led entirely by women, showcasing their expertise and resilience.
A family touring a 2-bedroom flat in Eersterivier, led by Bitprop's architect, Anika Hanekom. (Photo: Tashriq Abrahams)  
To celebrate their achievements, we spoke with our team about their experiences as women in construction, and their challenges, triumphs, and hopes for the future of the industry.
Bitprop's architect, Anika Hanekom, explaining the electricity and water meters in a flat in Eersterivier. (Photo: Tashriq Abrahams)
What drew you to architecture and construction?
Razaan: At first I wanted to combine my love for art with a profession that would allow for a sustainable income. During my studies it changed as I fell in love with the idea of placemaking and the effect it has on human experiences. So what's important to me is placemaking - designing functional spaces.
How do you manage different construction sites that are male-dominated?  
Ziyanda: Managing multiple construction sites in a male-dominated industry requires a balance of strong leadership, effective communication, and mutual respect. I focus on building a professional environment where everyone, regardless of gender, feels valued and motivated to contribute. I achieve this by
establishing clear expectations and ensuring that roles and responsibilities are well-defined. I’ve found that this reduces conflicts and promotes accountability across all teams.
I make it a priority to maintain open communication, creating a space where all the contractors can voice concerns or share ideas without hesitation.

Considerate Design for Tenants in the Township

Theme: Affordable Housing for Tenants

Bongani, a Bitprop tenant that works from home in Eersterivier, Cape Town. (Photo: Tashriq Abrahams)
The township construction context is generally very informal, poorly managed and inefficient in use of resources. Given that most backyard rental flats do not go through municipal approval nor comply with minimum quality requirements, there is a high prevalence of fire safety issues, a lack of formal connection to sewerage and plumbing, limited legal electricity connections that result in a higher risk of electricity-related accidents, poor security, a lack of natural sunlight, and poor air quality. These factors affect the overall health and well-being of tenants6.
3D model and floor plan of a typical Bitprop unit.
Kitchenette of an unfurnished two-bedroom flat in Eersterivier, built in 2024. (Photo: Tashriq Abrahams)
Our rental flats are built according to National Building Regulations based on location, and align with the City of Cape Town’s vision for responsible densification for the future10. The flats have superior physical properties compared to traditional backyard rental flats, such as greater strength, better thermal retention and improved acoustic qualities due to the environmentally responsible materials used. For the tenant looking for accommodation in the township, our flats compare favourably with other options. While there are many backyard rental flats available, given the high demand and the fact that most do not meet the required building standards, our flats are very popular. Our homeowners, together with our homeowner relationship managers, are able to fill vacant flats almost immediately and our vacancy rate is less than 3%.
Here's a quick look at a Bitprop flat.
The typical Bitprop tenant is a young professional such as a nurse, police worker, call centre agent or a student with an average age of 31 years old. They earn, on average, well below the upper limit of ZAR 22 000 (USD 1 158) defined as requiring affordable housing11. They are attracted to our flats because of the quality of design, the support provided and their location relative to major transport hubs and retail spaces. The features of our flats and the location provide additional benefits through reduced transport costs and lower energy expenses for tenants.
Two-bedroom flats built in Eersterivier in 2024. (Photo: Tashriq Abrahams)
Bitprop's consistent output of affordable housing addresses a serious problem affecting South Africa and the world; an estimated 3 billion people will live in sub-standard housing by 203012. Improved affordable housing can also have an indirect effect that creates huge value. A homeowner in iLitha Park mentioned that she regularly gathers recyclable materials from her tenants to pass on to a local recycler in the community. This neighbour sells it to buyback centres and the influx of Bitprop tenants has inadvertently provided her with a boost in income that supports her and her family.

5 lessons we've learned

1. It is possible to invest in a successful business in the township

We have built 506 rental flats and are on track for a 15,4% annual return over 10 years, which demonstrates that our impact model works. This fundamentally commercial model with impact ambitions challenges conventional corporate beliefs about the value of township business and showcases a transformative approach to investment.

2. The township rental market is incredibly resilient

Township rental rates are steadily increasing due to strong demand, a trend that has been consistent over the last 6 years. Despite the formal rental market experiencing default rates of over 40% during the pandemic, our properties saw only a 7-8% downturn in payments. In 2024, our average occupancy was 97%.

3. Tenants pay before the 1st of the month

Despite initial concerns from financial advisors about tenants not paying rent, we have achieved a 97% average occupancy rate and an almost 100% on-time rent payment rate. In fact, our tenants pay more than 3 days before the due date (1st of the month) on average. Much of this is due to strong homeowner-tenant relationships influenced by township social dynamics, the homeowner's constant presence on the property, and our comprehensive management support.

4. The social contract keeps everything running

Much of our success can be attributed to strong social relationships among homeowners, tenants and the community. Strong homeowner-tenant relationships are influenced by township social dynamics and the homeowner’s constant presence living on the property, which fosters close connections and social accountability.

5. We can employ locally and create financial returns at the same time

We’ve exclusively employed local contractors for construction, upskilling where needed and forging long-term partnerships. This approach supports local builders, challenges stereotypes about township talent, and proves that impactful flats can be built affordably to required specifications. The approach has a positive multiplier effect.

where to next

2024 was a year of stability and maturity. While we expanded our portfolio by more than 30%, we also improved our processes and built the foundations to be able to scale significantly more. This year, we will explore options for new locations in which to pilot and partner with local property owners. We expect to continue building the new 2-bedroom design and expand our offering to that segment of the market, and are excited to roll out solar power generation across our new properties and to retrofit a number of older properties in an effort to improve sustainability and to reduce reliance on the electricity grid.

We believe that to truly create long-term change where it is needed, collaborating with like-minded, optimistic and hardworking people is the best strategy. And we can't address everything ourselves. So we welcome input or collaboration of any form, and invite you to reach out!

Would you like to build flats in your backyard?
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