In most African countries, owning a home is nearly impossible for women. High housing costs and low incomes exclude most women from the formal financial market and limit their access to finance and land tenure, making it hard for them to buy or build a home.
A teacher by training, Rweyora began working on the idea after volunteering in South Sudan as a social worker, she felt that home ownership should be more attainable to the average working woman.
Smart Havens Africa builds houses in areas where homes are predominantly rented out by wealthier landlords. The company receives applications from prospective owners – mostly women – who will rent-to-own over a period of only five years.
Two innovations enable them to build affordable homes in a way that solves the current problem, creates jobs and protects the environment. Their innovation combines low-cost building technology with a novel financing mechanism (rent to own). They also employ women as masons to help improve their incomes. Existing options rely on traditional builders and contractors that are expensive, use burnt brick that harms the environment, rent homes indefinitely, and leave customers with little or no savings and no clear path to economic and personal growth.
Technologies include locally designed brickmaking that uses less material, designs that reduce temperatures in the hot Ugandan climate, custom biodigesters, and solar water and electricity installations to keep utility costs down.
The solution provides a unique pathway to homeownership and the tools to gaining financial security for women. With their model, one can own a two-bedroom house for $5000, compared to $45,000 on the market. While the use of traditional burnt brick causes mass deforestation, their blocks require no wood for firing. Saving at least 50 trees for every home built. Unlike traditional builders, for every home built, they create 25 jobs for women, each receiving a $2,500 increase in income per year.
Their revenue comes from rent-to-own payments, which lead to homeownership within five years. Rent-to-own payments range from $176 to $327 monthly for five years, with 46% contributing to their profitability and 54% going towards the client’s ownership. Additionally, 15% of the homes built annually are sold outright for $10,000 to $15,000, generating a gross margin of 30-53% which is injected back into the building of more homes.
