Expanding affordable shelter technologies in sub-Saharan Africa
Remote villages, water scarcity and dirt floors are just some of the images of sub-Saharan Africa that continue to proliferate when the topic is poverty in the region. However, with 41 percent of the population in sub-Saharan Africa living in urban areas[1] — a number that is estimated to grow to 58 percent by 2050 — cities have become spaces thriving with opportunities for businesses of all sizes to tackle poverty, one home and family at a time.
Like other emerging markets, the housing sector has been proven to be a key driver of economic growth and employment in sub-Saharan Africa. The Centre for Affordable Housing Finance in Africa (CAHF) estimates that the current housing shortage in Kenya is 2 million housing units, a number that increases to 3.5 million in South Africa and up to 17 million units in Nigeria. In most countries in Africa’s sub-Saharan region, access to formal housing remains a costly and cumbersome exercise, stifled by regulatory frameworks, households’ inability to access mortgage loans and a backlog in infrastructure development. Innovation within the sector, through new housing technologies, offers a means to bring down costs by overcoming some of the constraints in housing supply.
As the demand for shelter increases, the overall need for materials, services and specialized labor, innovation has an important role to play in facilitating these connections, which rings especially true for small businesses with the potential to disrupt the market through scale. Innovative strategies can trigger multiplier effects on local economic growth, and help low-income families achieve the safety and stability they need through affordable housing products and services.
Habitat for Humanity’s Terwilliger Center for Innovation in Shelter was one of the first players to recognize and invest in opportunities for affordable housing innovation through ShelterTech and the Kenya startup accelerator launched in 2018.
“More than just an accelerator program, we built a co-creation and stakeholder-driven network to build up and support startups that are working on solutions that can help to address the existing housing gap in the country,” said Jane Otima, regional director for the Terwilliger Center’s Shelter Venture Lab in Kenya. “We also understand that educating the ShelterTech entrepreneurs is not the only solution; we must also educate the investor ecosystem that these are viable investment opportunities.”
Startups that joined ShelterTech through the 2018 Kenya cohort have already made ripples in local markets. They include:
Gjenge Makers produces sustainable and low-cost paving blocks made of recycled plastic waste and sand. Founder and CEO Nzambi Matee was inspired to act after seeing the volume of plastic waste produced every day in Kenya’s capital, Nairobi. Her startup is scaling up opportunities for youth employment in both recycling and green construction. She was also a recent recipient of the UN Environment Programme’s Young Champion of the Earth award. “This is the time for me to tell people what I think and I believe can create change,” said Nzambi.
Bluewave Insurance Agency was founded by Adelaide Odhiambo in 2016, with the goal of making it easier for all Africans to access affordable insurance products. The startup provides an innovative online platform where clients can purchase micro-insurance products through various channels, including SMS and WhatsApp. The venture’s success was recognized by the sector, leading to its acquisition in February 2022 by regional insurance leader Lami. Odhiambo joined Lami as Director of Commercial Partnerships, to continue working towards insurance access for low-income families.
ManPro provides digital solutions for the construction industry, bringing down project costs through the use of customized, affordable and easy-to-use digital tools. In 2018, the company won the Technological Innovation of the Year at the Construction Industry Awards in Kenya. “Having Habitat helping entrepreneurs like ourselves here in Kenya is really a blessing.” Said Linus Wahome, CEO of ManPro.
Innovation opportunities in the regional housing landscape include the expansion of rental housing modalities for middle to low-income earners, as well as the development of robust housing technology markets and smart cities solution that can contribute to the sustainable growth of urban centers.
To expand the platform of affordable housing innovation to the region, Habitat is launching the ShelterTech accelerator for sub-Saharan Africa, which will seek startups and scaleups committed to solve challenges to improve the livability and affordability of housing for low-income families. The platform is unique in its range of offerings for startups, scaleups and ecosystem partners, providing the right connections, knowledge, visibility, and capital for ventures to thrive and make an impact in the affordable housing sector.
Startups and scaleups based in countries located in sub-Saharan Africa can apply on or before July 6, 2022. More information can be found on shelter-tech.org.
[1] https://data.worldbank.org/indicator/SP.URB.TOTL.IN.ZS?locations=ZG
