Glass jar filled with coins and a small seedling in the center, with stacks of coins arranged from smallest to largest on a table. Highlights the concept of saving and financial growth
South Africa is sitting on a R3 trillion treasure trove of untapped and “off the books” real estate value embedded in South Africa’s townships and rural areas, potentially reshaping access to finance, insurance and economic growth.
Identifying and unlocking that hidden property wealth could transform the lives of millions and give a significant boost to the country’s gross domestic product (GDP).
Why most household wealth remains excluded
The developers of a fintech (financial technology) system, which can assign monetary values to properties and land outside the formal property market, point out that while millions of households live in formally registered properties, an estimated 90% of South Africans have built homes incrementally using cash, without payslips, mortgages or access to formal credit.
However, they lament that until this treasure chest of potential equity is unlocked, SA’s real GDP growth could remain stunted at under 1%.
ALSO READ: SA’s economic resilience sets the stage, but 2026 risks remain – economist and IMF
The E-DEED solution and its technology
The system, E-DEED, uses artificial intelligence and blockchain technology to generate property valuations with a claimed accuracy rate of 97%, even where homeowners lack formal title deeds.
The platform, developed by businessman and author Lance Chalwin-Milton, informal economy specialist GG Alcock and Afrirent executive group chair Senzo Tsabedze, argues that SA’s property market remains deeply bifurcated.
According to the E-DEED founders, this has left vast amounts of household wealth excluded from the formal economy, contributing to persistently low GDP growth of under 1%.
Alcock said conventional property systems fail to accommodate the realities of township homes, RDP housing, and properties on tribal or Ingonyama Trust land.
“Millions of homes will never receive title deeds because of historical, cultural, and administrative complexities. In the absence of title deeds, we need alternative ways for owners to realise the value of assets they have invested in for decades,” he said.
ALSO READ: Several positive developments lifted investor sentiment in SA – Reserve Bank
Digital valuation and accessibility
E-DEED produces a digital valuation certificate linked to a non-fungible token, intended to serve as a secure, tamper-proof representation of a property’s value.
The system requires only a smartphone, making it accessible to homeowners previously excluded from the property and financial markets.
Chalwin-Milton estimates that SA has around 20 million homes, of which only about nine million are formally deeded.
“These so-called ‘unwealthy’ households often sit on assets worth R1 million to R2 million or more…It is 100% equity that is currently ignored by banks and insurers,” he said.
Lessons from disaster and inequality
Chalwin-Milton pointed to disparities exposed by the KwaZulu-Natal floods, where insured properties in affluent areas were rebuilt while uninsured township homes were lost entirely.
He said denying families insurance for assets of equal value is unjust.
“We want to make the unwealthy, wealthy. When we say ‘unwealthy’, that is a misnomer. These assets can be worth R1 to R2 million or more. This is a 100% equity asset. When we did our homework, we encountered an estimated 20 million homes in South Africa. Only 10% – two million of them – are classified as ‘shacks’,” Chalwin-Milton said.
ALSO READ: Relax, there will be no wealth tax – top 12% already pay 60% of personal tax
Insurance as an immediate impact
He said there are about nine million deeded homes, and the remainder are the invisible but significant structures within townships or on tribal trust land in rural areas.
One immediate impact could be in insurance, Tsabedze said.
Currently, just 11.54% of SA homes are insured and that E-DEED creates an “insurable interest”, allowing under- and uninsured homeowners to cover properties at their true value.
Expansion plans and a moral imperative
“This is about transparency, efficiency and inclusion,” he said.
The founders believe the platform could transform asset finance and insurance, with plans to expand into at least six other African countries by the end of next year.
They argue the initiative represents both a commercial opportunity and a moral imperative to recognise long-ignored household wealth.
Tsabedze believes that traditional property wealth processes have been marred by inefficiencies, paperwork, and lack of transparency.
NOW READ: GDP: Economy grew by only 0.5% in third quarter
About the Author
