Affordable Housing

Slum in Angola, Africa. Capital city of Luanda. Poverty versus wealth in developing countries.

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Affordable Housing
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Infrastructure
Real Estate
Business Model Description

Construct affordable and sustainable housing to accommodate the growing population in urban and suburban areas. This includes both the development of new housing projects and the refurbishment and upgrading of informal settlements. The business model relies on the formation of public-private partnerships (PPPs) to effectively implement these projects. In these partnerships, government authorities contribute by providing land, regulatory approvals, and potential tax incentives, creating a supportive environment for development. Private investors, on the other hand, bring capital investment, construction expertise, and management skills to the projects. Together, these collaborations aim to design and execute affordable housing projects engaging marginalized communities in decision-making processes that not only meet current housing demands but also include necessary infrastructure to ensure access to basic services like water, electricity, and sanitation.

Expected Impact

Foster sustainable urban development through the provision of affordable, environmentally responsible housing.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
20% - 25% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Sustainable Cities and Communities (SDG 11) Reduced Inequalities (SDG 10)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Gender Equality (SDG 5)
Sector Sources
  • 1) Muzima J. (2018) Angola. Source: https://www.afdb.org/fileadmin/uploads/afdb/Documents/Generic-Documents/country_notes/Angola_country_note.pdf 2) Governo de Angola (2023). Plano de Desenvolvimento Nacional 2023-2027. Source: https://www.mep.gov.ao/assets/indicadores/angola2050/20231030(3)_layout_Final_Angola_PDN%202023-2027-1.pdf. 3) World Bank (2019). Creating markets in Angola. Source: https://documents1.worldbank.org/curated/en/606291556800753914/pdf/Angola-Country-Private-Sector-Diagnostic-Creating-Markets-in-Angola-Opportunities-for-Development-Through-the-Private-Sector.pdf 4) Søren Kirk Jensen (2018). Angola’s Infrastructure Ambitions Through Booms and Busts. Source: https://www.chathamhouse.org/2018/09/angolas-infrastructure-ambitions-through-booms-and-busts 5) Allan Cain (2019). Africa Housing Finance Yearbook - Angola . Source: https://dw.angonet.org/wp-content/uploads/cain_2019_angola_profile_in_africa_housing_finance_yearbook_2019_-_pp_59-62.pdf. 6) Branca Do Espirito Santo (2021). Challenges and opportunities in Angola's housing sector. Source: https://housingfinanceafrica.org/documents/35397/.
IOA Sources
  • 7) Broima (n.d.). Sobre nós. Source: https://www.broima.co.ao/. 8) Statista (2023). Real Estate - Angola. Source: https://www.statista.com/outlook/fmo/real-estate/angola. 9) Centre for Affordable Housing Finance Africa (2019). Anuário sobre o Financiamento à Habitação 2019 Angola, https://housingfinanceafrica.org/app/uploads/Angola-Profile_Portuguese.pdf. 10) Muhammad Ali Musarat, Wesam Salah Alaloul, M.S. Liew (2021). Impact of inflation rate on construction projects budget: A review. Source: https://www.sciencedirect.com/science/article/pii/S2090447920300939. 11) Lukas Gutierrez (2023). Housing for All: Addressing the Social and Environmental Implications of the Housing Crisis. Source: https://sustainable-earth.org/housing-crisis/. 12) Azkia Hasan (2024). The Issues of Gentrification. Source: https://insights.grcglobalgroup.com/gentrification/. 13) Zurich Insurance (2023). The risks of rapid urbanization in developing countries. Source: https://www.zurich.com/en/knowledge/topics/global-risks/the-risks-of-rapid-urbanization-in-developing-countries. 14) Jacqueline Thomas (2019). Separated by Design: Why Affordable Housing Is Built in Areas With High Crime, Few Jobs and Struggling Schools. Source: https://www.propublica.org/article/separated-by-design-why-affordable-housing-is-built-in-areas-with-high-crime-few-jobs-and-struggling-schools. 15) The Uprooted Project (n.d.). Understanding Gentrification and Displacement. Source: https://sites.utexas.edu/gentrificationproject/understanding-gentrification-and-displacement/. 16) PROPRIV Dashboard (n.d.). Source: https://igape.minfin.gov.ao/PortalIGAPE/#!/privatizacoes/dashboardpropriv. 17) Assembleia Nacional (2011). Lei n.º 2/11 de 14 de janeiro. Source: https://lex.ao/docs/assembleia-nacional/2011/lei-n-o-2-11-de-14-de-janeiro/. 18) Law 10/21 of 22 April 2021. See also: UNCDTAD (2021). Amendments to the Private Investment Law. Source: https://investmentpolicy.unctad.org/investment-policy-monitor/measures/3705/amendments-to-the-private-investment-law-. 19) Soluap (2024). Most populated provinces of Angola. Source: https://soluap.com/most-populated-provinces-of-angola/. 20) UN STATS (n.d.). Country Profile: Angola. Source: https://unstats.un.org/sdgs/dataportal/countryprofiles/AGO#goal-10. 21) ILO (2021). ILO STAT Explorer. Source: https://rshiny.ilo.org/dataexplorer40/?lang=en&id=SDG_0831_SEX_ECO_RT_A. 22) UN Habitat (2019). Universal Periodic Review Angola. Source: https://uprdoc.ohchr.org/uprweb/downloadfile.aspx?filename=6808&file=EnglishTranslation. 23) UN HABITAT (n.d.). Angola. Source: https://unhabitat.org/angola. 24) SAIIA (2014). ‘Oil for Housing’: Chinese-built New Towns in Angola. Source: https://saiia.org.za/research/oil-for-housing-chinese-built-new-towns-in-angola/. 25) CAHF (2021). Challenges and opportunities in Angola's housing sector. Source: https://housingfinanceafrica.org/documents/35397/. 26) Impact investing institute (2021). IHS Fund II (SA and SSA). Source: https://www.impactinvest.org.uk/wp-content/uploads/2021/04/IHS-Fund-II-SA-and-SSA.pdf?_gl=1*1exuwsq*_up*MQ..*_ga*ODc3MzY5NzEuMTcxMzU1MzQ0OA..*_ga_SGZH7ZJGJZ*MTcxMzU1MzQ0Ni4xLjAuMTcxMzU1MzQ0Ni4wLjAuMA. 27) Mudzingwa, F. (2024). Analyzing Angola’s Housing Divide: Luxury Apartments Amidst a Struggle for Basic Shelter. Source: https://dotzedw.com/analysing-angolas-housing-divide-luxury-apartments-amidst-a-struggle-for-basic-shelter/#:~:text=It's%20still%20too%20early%20to,region%20of%202.2%20million%20units. 28) Xinhua (2024). Public welfare project exemplifies China and Angola's friendship. Source: https://english.news.cn/africa/20240418/903321a7279d45bf890e2a1aff6bb61b/c.html 29) CAHF (2021). 2021 Yearbook: Housing Finance in Africa. Source: https://housingfinanceafrica.org/app/uploads/2021/11/2021_CAHF-yearbook-final-compressed-1.pdf 30) CAHF (2016). Land markets for housing in Angola policy paper. Source: https://housingfinanceafrica.org/app/uploads/Land-markets-for-housing-Policy-paper-2016.pdf