Balwin CEO Steve Brookes: “South Africa isn’t broken - it just needs hard work and good governance"

Balwin Properties founder and CEO Steve Brookes joins Alec Hogg to unpack how his company defied South Africa’s economic odds - growing revenue by 44%, profit by 33%, and headline earnings by 29% in just six months. Brookes shares why he believes optimism and hard work still pay off in a struggling economy, credits disciplined debt reduction for their success, and highlights how green building innovations are saving homeowners years on their bonds. He also calls out poor governance and infrastructure decay beyond the Western Cape, warning that South Africa’s growth hinges on municipalities that “deliver, not debate.”.Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here..Watch here:.Listen here.Highlights from the interview.Balwin Properties CEO Steve Brookes has a simple philosophy for success in a tough economy: put your head down, work hard, and build a brand that can survive anything. After 29 years in the business, his company’s latest half-year results tell the story - revenue up 44 percent, profit up 33 percent, headline earnings up 29 percent.Speaking to Alec Hogg on BizNews, Brookes credited those numbers to people, not luck. “We’ve built a brand,” he said. “I’ve got a superb team. Our cost engineering has become an art. We work damn hard to keep our customers happy, and the good stuff always comes to the surface.”For him, there’s no magic formula. “It’s hard work,” he said plainly. “We’ve got a fantastic chairman who says, ‘Put your head down and the numbers will come right.’”Refusing to participate in the recessionWhile many businesses complain about weak sentiment, Brookes insists on optimism. “I’m fiercely passionate about this country,” he said. “We live in a phenomenally good country. We do initiatives, clean-ups, we help municipalities where we can. I don’t want to get into their issues, but we do try to make a difference.”He believes the company’s work with the Green Building Council is proof that positive action pays off. “All my greening is paying dividends for our clients,” he said. “It’s unbelievable.”But optimism has limits. Brookes admits the business thrives where governance works - and that’s most visible in the Western Cape. “They deliver,” he said. “They really deliver. Good roads, electricity, water, sewage to connect into. The rest of the country just needs to look at that. It’s not rocket science.”No dividend, but a planDespite record profits, Balwin’s board held back on paying a dividend. Brookes called it a prudent decision. “Our debt levels are too high. There’s no point paying dividends while your debt is high. We’re on a drive to reduce debt,” he said. “I’m a big shareholder - of course I’d love a dividend - but we must be cautious.”Cash is being redirected into debt reduction and strategic land purchases in the Western Cape. “We’re getting to the end of our land holdings there,” Brookes explained. “It’s a great position, and it’ll stay that way for a long time.”Infrastructure is the lifebloodIf there’s one message Brookes hopes politicians hear, it’s about infrastructure. “I got a call on the first day of lockdown from a senior government official asking what he could do to help. I said one word - infrastructure,” he recalled. “It’s the lifeblood of any economy. Fix the infrastructure we’ve got in Johannesburg and Pretoria, and growth will follow.”He pointed to Waterfall City in Gauteng as an example of what happens when infrastructure is done right. “We have a phenomenal relationship with Waterfall. They’ve won awards overseas. They do outstanding infrastructure and that makes all the difference,” he said.The rest of Johannesburg, he admitted, still needs work. “Fix the water, fix the roads, and off you go,” he said. “In Pretoria’s east we’re putting in world-class roads. The government owes a bit for that, which I hope they’ll pay soon, but it’s worth it. We’ve got fifteen thousand apartments planned there.”Long pipeline and diversificationBalwin’s development pipeline remains strong at around 35 000 apartments, with potential to build between 3 000 and 5 000 a year. “We’re looking at different avenues on our land,” said Brookes. “We’ve done good deals on shopping centres and with schools. We’re expanding our retirement business and moving into storage. It’s all about accelerating what we can do with our land.”For investors, that means the growth story is still unfolding. “We’ve got the runway,” he said. “The numbers are good, the brand is strong, and the demand is there.”Why green is good businessOne of Brookes’ proudest achievements is turning sustainability into profit. “We’re the highest-rated green developer in the world through our Edge Advanced certification,” he said. “The IFC lent us a billion rand for infrastructure, which we’re using in Pretoria’s east.”He insists that green doesn’t mean expensive. “We don’t spend a cent extra to achieve green. We’ve got brilliant architects who make buildings more efficient and cheaper to run. Thanks to our banks, clients get concessions on mortgage rates. We’re definitely not behind the curve.”Around 85 to 90 percent of Balwin’s clients now take up green bonds. “If I can save you one year on your mortgage, surely that matters,” Brookes said. “Banks even give a 3 percent rebate into your bond, up to R56 000. That’s a big head start.”Investors and first-time buyersBalwin’s buyers span generations, but Brookes said investors remain a crucial part of the business. “About 50 to 60 percent of our business is still investors. The yields are good, capital growth is strong, and we’re about to release data showing just how good it is,” he said.At the same time, he’s passionate about helping young South Africans buy homes. “People shouldn’t rent for life,” he said. “We help first-time buyers with no transfer duty, no bond costs, a year off their mortgage, and a kick at the start. Now’s the time to buy.”Beyond property: community and sportBrookes also heads the Balwin Foundation, which funds training and community sports. “Half the foundation does training. The other half does sport - swimming, running, cycling, basketball - and paddle,” he said. “We build paddle facilities on our developments. They pay themselves back in five years. It’s good business and a lot of fun.”For Brookes, the formula that drives both profits and purpose hasn’t changed. “There’s no secret,” he said. “It’s hard work, a good team, and believing in South Africa. If we fix infrastructure and keep doing the right things, the numbers will follow.”

Balwin CEO Steve Brookes: “South Africa isn’t broken - it just needs hard work and good governance"

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