Africa needs to create jobs to fight high unemployment. What product can be “produced” to stimulate job creation, skills development and stimulate entrepreneurship? How can people outside the economy be brought back into the economy?
Housing crisis
The world is experiencing a global housing crisis. About 1.6 billion people globally live in substandard housing and 100 million are homeless, according to the United Nations. If no serious action is taken, the United Nations reports that the number of slum dwellers worldwide will increase over the next 30 years to nearly 2 billion. Despite the progress in meeting low cost housing in Africa, UN agency Habitat, says that the continent requires 4 million units per year to cover its low cost housing needs.
Poverty housing affects people’s health and well-being, their job prospects and ability to make a living. It locks people into a cycle of poverty. It also holds children back from fulfilling their potential: children living in bad housing are more likely to suffer from serious health problems, to have learning difficulties and miss school and to face unemployment and poverty later in life. The impact on children’s development is both immediate and long-term. Growing up in poor or overcrowded housing has been found to have a lasting impact on a child’s health and well-being throughout their life. Housing at minimum cost meaning lowering the cost of construction
Advantage of economies of scale
A house is made up of many components – Just like a vehicle. Currently the industry is focused on the high end of the pyramid as this does not address the issues of “lean” construction principals allowing for errors in the “manufacturing” of the product as there is enough profit included to cover the inefficiencies of conventional brick and mortar construction.
Because moladi is a “measured system”, meaning that all input cost are managed very accurately, compared to traditional construction methods. The bricklaying process is not consistent nor is thickness of plaster to name but two examples. “If you cannot measure it, you cannot manage it” Reference – Link
The Model T
product to stimulate the economy in 1920 was Henry Ford’s Model T – The Model T had huge success, yet in reality it is far removed from Maslow’s hierarchy of needs – It is Not “Food and Ford” but “Food and Shelter” and a job producing product. That is what Henry Ford achieved and turned the economy around producing a product with local labour. 81,000 to be exact and this was in 1920.
Combining economic development, the high unemployment rate and skills development, not being provided nor addressed in an antiquated education system, our goal is to stimulate the economy by “producing Model M” A moladi home, a basic need and thereby stimulating the secondary supply chain taking advantage of local resources. If a million homes are to be produced, should we not rethink how we are going to achieve this by combining expertise?
Should this not be seen as a production line or an assembly plant? Should we not equip local entrepreneurs to be our supply chain of additional components such as door frames, window frame, paint, tiles, roof covering, and roofing material? If a house required 5 door frames, a total number of 15 million would be needed to be manufactured. Imagine the job creation opportunity just to supply door frames, a far better strategy than simply importing them from China and transferring your capital out of circulation.
When quality homes are produced consistently
When quality homes are produced consistently, banks and financiers will be more willing to invest in a branded product like moladi with a track record, as opposed to individual contractors who are perceived as high risk.
- Back to Basics
- Create entrepreneurs that PRODUCE
- Creating JOBS
- Producing FOOD
- Producing SHELTER
- Producing TAXES
- Circular Economy
- Link to PowerPoint presentation – Affordable Housing
