Informal settlement residents who want to improve their homes but don't qualify for bank loans could benefit from a new partnership between a non-profit organisation and a micro-finance institute.

Ikhaya Lami, a non-profit organisation (NPO) based in Nyanga, has been providing equipment and services for an affordable housing design that is easy to transport, quick to assemble and comes with extras including environmentally friendly alternative technology.

Andy Bolnick, the brainchild behind and head of the project, announced that micro-finance institution Kuyasa Fund, set up to improve housing conditions for poor people across the province, has come on board to provide funds for people to access these homes.

The partnership was launched on Saturday when the Kuyasa offices in Nyanga were opened, next to a string of "show houses" along New Eisleben Road.

Bolnick said the project would allow people to improve their lives and living spaces.

"It's better than a shack. It also lifts up the poorer communities or gives them a start or a shelter, even if it's temporarily.

"It's a really good start for a family as the finance can also allow them to expand their existing homes."

"It's affordable and we found that people really like it."

Some of the structures have three rooms, while others have two.

Pricing starts at about R5 000 for a basic 10 square metre structure.

The walls are made of 0,5mm galvanised or corrugated fibre cement sheeting.

Buyers can opt for Nutec fibre cement for the interior, which improves insulation and is fire resistant.

Other options include solar lighting, a solar powered geyser system and a dri-toilet with a soak-away and a sun-dry area for waste.

The structures range from 10 to 40 square metres. People can buy them in sections, with or without a thick slab of concrete, the base or foundation of the unit.

Solar lighting costs about R1 250, includes a cellphone charging mechanism, and can last for about five hours a night.

"We need to sell to NGOs and the private sector," said Bolnick.

Cape Town-based Kuyasa focuses on supporting community groups and encourages people to save towards housing.

They also grant loans to individuals who qualify for government subsidised homes.

Kuyasa clients, who earn under R3 500 a month or are informally employed, are eligible for loans of up to R10 000.

Executive director of the fund, Olivia van Rooyen, said the project was a "useful thing" for their operation and that it would allow some families to expand and have more space available.

She said their clients were generally "under the radar" and that they had a better chance of getting a loan from Kuyasa than the bigger financial institutions.

"Our clients are under the whip in terms of inflation implications," she said.

Ikhaya Lami, established three years ago, is linked to various NGOs including the Federation of the Urban Poor (Fedup).

They work together in trying to cater to the housing needs in informal settlements.

Fedup member Nolita Fani said she knew the project would be successful.

"Our people are staying in shacks that are in a bad condition and it is winter so the rains will seep through. This will be good for them, especially with the floods."

A potential customer, who viewed the structures on Monday, said he thought the prices for the building materials were reasonable and that he would return after pay day.