An innovative construction material transforms Kenya's booming housing market, with Mburu Karanja

An innovative construction material transforms Kenya's booming housing market, with Mburu Karanja

Housing in Africa is a huge problem.

Every year millions more people arrive in cities and are forced to stay in informal settlements.

Developers struggles to keep up, and walking around Nairobi at least, you’ll rarely be far from a construction site building another high rise.

What I didn’t realise though, was how the current approach of building with bricks and mortar is actually quite inefficient.

There’s a limit on how much you can build each day (four stones high) and a whole series of other considerations which means that the supply of housing is actually constrained by the bricks and mortar approach.

In this episode I speak with Mburu who runs Cemex Holdings, a company that produces a new form of building material, essentially panels of reinforced steel mesh.

Before conducting the interview in Mburu’s office upstairs I had a tour of the factory and a the show home they made next door. Maybe I was missing something, but the argument to switch seemed pretty compelling.

On most fronts it seemed to be a superior offering to stone building, the main barrier being people’s willingness to go with something outside of the status quo.

I won’t spoil things too much, but I found this a fascinating business for showing how to introduce a new technology into a market, as well as learning more about the dynamics of the construction industry which I know next to nothing about.

Mburu is a biochemist by training from University of Texas, passionate about building Kenya.

The vision is how to offer dignified housing to all Kenyans.

The technology they are using for the panels (EPS: expanded polystyrene) is over 40 years old. There are 60 plants around the world, and 17 in Africa.

It allows for rapid installation of housing materials, cutting construction time by 50%.

The core business as a materials supplier. But also need to vertically integrate, with this being a new market. The big thing is to train contractors in using the Cemex system.

There are various trade offs involved. The major consideration is the time taken to build a structure. With stone you can only do 1 metre per day. By using a whole panel you do 3 metres per day.

Being a new technology in Kenya they are going through the diffusion of innovation.

There is a unique housing problem in Africa. There are not enough houses in Africa.

A big thing is to try and move people away from the idea that stone is the only route they can do.

Kenyans are price sensitive, so the numbers have to work. Which they do. There are cost savings in: less materials (reinforcing foundations), time, finances

Interest rates are high in Kenya (13.5% base) and so being able to realise revenue quicker cuts the overall costs.

In going to the market, they’ve never had a rejection once engaging with a developer.

The vision of the company fits the government’s Big Four agenda (ensuring food security, affordable housing, manufacturing and affordable healthcare).

Several other companies have begun using this technology in Kenya. Though they are the only one with a partnership from the Italian originators Emmedue.

It’s a certified green building technology. Reduced environmental impact compared to quarrying stone. Transportation is much lighter too: 1 lorry of EPS is the same size of finished product as 7 lorries of stone.


READ MORE AT:
https://theeastafricabusinesspodcast.com/2018/08/30/walls-how-a-new-technology-building-material-will-transform-kenyan-housing-with-mburu-karanja/

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The exciting ways brands can engage with a growing youth market in Uganda, with Belguin Prosper

The exciting ways brands can engage with a growing youth market in Uganda, with Belguin Prosper

Uganda has the world’s youngest population. Brands are waking up to the idea that if they can create loyalty amongst this large section of society, they will reap the rewards for years to come. But how? Well a lot of them are going to Belguin, who started Young & Free International, an organisation that helps brands engage with the youth of Uganda. Belguin gives an excellent overview of his journey so far, what campaigns he has seen work best, and what he learned from hosting a cultural exchange with students from Somalia… READ MORE AT:https://theeastafricabusinesspodcast.com/2016/11/09/marketing-how-brands-engage-with-the-growing-youth-market-in-uganda-with-belguin-prosper-of-young-and-free-international/

9 Marras 201633min

Make up for African women - why imported cosmetics don't work and no-one trusts the Chinese

Make up for African women - why imported cosmetics don't work and no-one trusts the Chinese

Make up is not an industry that I can profess to know much about, but after speaking with Sylvia, the founder of Paramour Cosmetics, I feel I know a lot more In this episode we talk about how Western make up is unsuitable for African women, the way that Sylvia trains her staff to help customers with their mental wellness, and how the business is looking to expand in the US after Sylvia was accepted onto a programme designed by President Obama to find the next 1000 African leaders who will make an impact. Sylvia was also the person who introduced me to Gloria (the founder of Kampala Fashion Week) and so if you’re interested in more about East African beauty and fashion, be sure to give that episode a listen too. For now at least I hope you enjoy Sylvia and I’s conversation all about make up. READ MORE AT:https://theeastafricabusinesspodcast.com/2016/11/02/make-up-growing-the-ma

2 Marras 201646min

How a credit marketplace can unlock the potential in SMEs, with George Bakka from Patasente

How a credit marketplace can unlock the potential in SMEs, with George Bakka from Patasente

Interest rates in Uganda, and indeed the whole East Africa region, are by Western standards, very high. A small business looking for a short term loan from a bank will be expected to pay in the region of 10% interest per month. In an economy where payment is often made upon delivery, this causes problems in terms of getting access to working capital. In this episode, Bakka and I discuss Patasente, the platform he has started to essentially crowdfund credit agreements for small businesses so that they can raise funds to take on new contracts that come in, and grow their business. READ MORE AT:https://theeastafricabusinesspodcast.com/2016/10/26/sme-financing-building-an-enterprise-focused-credit-marketplace-with-george-bakka-from-patasente/

26 Loka 201635min

Glass half full: how Jibu's innovative franchise provides clean, affordable water across East Africa

Glass half full: how Jibu's innovative franchise provides clean, affordable water across East Africa

If you consider businesses that solve Tier A problems, safe drinking water is pretty much top of the list. Across East Africa people are unable to drink from the tap, and so are left to either boil their own, or buy expensive water in a bottle. Galen started Jibu to address the need, creating a franchise where local entrepreneurs could treat tap water at source and sell it in reusable bottles to people in their neighbourhood. We discuss how the business started, the benefits and challenges that come from the franchise model, and Jibu’s vision to provide convenient safe drinking water for all. READ MORE AT:https://theeastafricabusinesspodcast.com/2016/10/19/bottled-water-franchise-decentralising-water-treatment-to-empower-entrepreneurs-in-east-africa-with-galen-welsch-of-jibu/

19 Loka 201642min

New York, Paris, Kampala..? How and why Gloria Wavamunno started Uganda's international Fashion Week

New York, Paris, Kampala..? How and why Gloria Wavamunno started Uganda's international Fashion Week

Across the world the pinnacle display of a country’s fashion is its annual “Fashion Week”. London, New York and Paris lead the way in this showcase of designers pushing the frontiers of design and style. Until Gloria Wavamunno started it a couple of years there was no Fashion Week in Kampala, Uganda. In this episode we discuss how and why she started the event, and cover a lot about the cultural and societal issues around fashion as well as giving an overview of the creative industries as a whole. Kampala Fashion Week 2016 is 20th – 22nd October 2016 READ MORE AT:https://theeastafricabusinesspodcast.com/2016/10/12/fashion-how-and-why-gloria-wavamunno-started-kampala-fashion-week/

12 Loka 201643min

Smoothies: how a growing Rwandan enterprise sells healthy juices, with Anitha Dusabe of Twistiblendz

Smoothies: how a growing Rwandan enterprise sells healthy juices, with Anitha Dusabe of Twistiblendz

There’s (literally) tonnes of fruit in Rwanda, but only a tiny fraction of it ends up being whizzed up and drunk as smoothies. When it does, it’s usually at Twistiblendz. I speak with Anitha about the leap she took to start the venture (in partnership with Giles and an organisation named SMGF), her plans for expansion, and the general market for healthy produce in the countryREAD MORE AT:https://theeastafricabusinesspodcast.com/2016/10/05/smoothies-a-small-but-growing-rwandan-enterprise-selling-healthy-juices-with-anitha-dusabe-of-twistiblendz/

5 Loka 201627min

How using solar energy can drastically improve how farmers water their crops, with Flavia Howard

How using solar energy can drastically improve how farmers water their crops, with Flavia Howard

Water is fundamental to any sort of agricultural business. As it stands, a large portion of Rwandan farmers only get it from the sky, in the form of sporadic rainfall. This is despite plentiful lakes full of water being mere metres away. Irrigation is the general term process for artificially getting water on these crops, and Flavia and I discuss her evaluation of the market and the product she has been looking at (Future Pump) that provides a solar powered irrigation pump to smallholder farmers. READ MORE AT:https://theeastafricabusinesspodcast.com/2016/09/28/irrigation-systems-an-overview-of-innovations-in-how-farmers-in-rwanda-water-their-crops-with-flavia-howard/

28 Syys 201632min

Beanz Meanz Development: value addition by cooking and packing nutritious beans

Beanz Meanz Development: value addition by cooking and packing nutritious beans

From a GDP perspective, any business that “adds value” to a supply chain  is a good thing. Traditionally countries like Rwanda have been just growing agricultural produce, with other companies/ countries undertaking investment and reaping the benefits of manufacturing of a higher value product. FarmFresh is  different in that regard. I visited Christian Heremans at their “pilot factory” (a converted house) to see how his company are taking raw beans, and turning them into well packaged cooked beans for consumption in and out of Rwanda. READ MORE AT:https://theeastafricabusinesspodcast.com/2016/09/21/cooked-beans-the-food-business-of-bean-processing-in-rwanda-with-christian-heremans-of-farmfresh/

21 Syys 201629min

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