A US private equity fund has announced that it is planning to double its level of investments in South Africa by the end of the year.

International Housing Solutions (IHS), a private sector fund targeting lower to middle-income earners, is looking to capitalise on investment opportunities in Africa during the global downturn.

"International investors, who are under-exposed here, are very attracted to the opportunities that affordable housing in Africa presents," said Soula Proxenos, IHS managing partner, in an interview with Reuters.

"We hope to find projects in Africa, mostly in South Africa, where we will invest in excess of R1,5-billion in the next 18 to 24 months ... and we intend launching a successor fund that will be pan-African, in the region of about $400-million," added Proxenos.