Low-cost construction material production

Low-cost construction material production

Photo by UNDP / Mazane Singles

Low-cost construction material production
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.
Consumer Goods
Consumer Discretionary Products
Business Model Description

Produce affordable and environmentally friendly building materials, such as bricks, steel, tiles and concrete.

Expected Impact

Improve access of low and middle income populations to better materials for home improvements and safer living conditions.

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).
15% - 20% (in ROI)
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.
Long Term (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.
5% - 10% (CAGR)
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8) Industry, Innovation and Infrastructure (SDG 9) Sustainable Cities and Communities (SDG 11)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
No Poverty (SDG 1) Zero Hunger (SDG 2) Reduced Inequalities (SDG 10)
Sector Sources
  • 1) United Nations Development Programme (2020). Sustainable Development Report 2020. https://unstats.un.org/sdgs/report/2020/The-Sustainable-Development-Goals-Report-2020.pdf 2) Ministry of Infrastructure. Draft Final Transport Sector Strategic Plan for the National Strategy for Transformation (NST1) 2018. 3) Gatete, C. (2016). The Rwanda we want: Towards ‘Vision 2050’. https://www.minecofin.gov.rw/fileadmin/user_upload/Minecofin/Speeches/Hon_Gatete_Umushyikirano_Presentation_2016.pdf 4) Republic of Rwanda. Industrial Sub-Sector Master Plan For Construction Materials. Ministry of Trade and Industry. Government of Rwanda. https://rwandatrade.rw/media/MINICOM%20Construction%20Materials%20MasterPlan.pdf 5) World Bank. Housing Solutions for Low-Income Urban Communities in Rwanda. 6) Bower, J. and Murray, S. (2019). Housing need in Kigali: Findings and policy reflections. https://www.theigc.org/wp-content/uploads/2019/07/Bower-Murray-2019-Policy-brief.pdf 28) United Nations Conference on Trade and Development (2014). Who is benefiting from trade liberalization in Rwanda? A Gender Perspective. https://unctad.org/system/files/official-document/ditc2014d2_en.pdf
IOA Sources
  • 7) Gardner, D., Lockwood, K. Pienaar, J. (2019). Assessing Rwanda’s Affordable Housing Sector. Centre for Affordable Housing Finance in Africa. http://housingfinanceafrica.org/app/uploads/CAHF-Rwanda-HEVC-and-HCB-FINAL.pdf 8) Project Africa Rwanda. Rwanda’s construction market in focus. http://www.projectafrica-rwanda.com/market-insights 9) UN Comtrade database. 10) Ministry of Trade and Industry. Industrial Sub-Sector Master Plan for Construction Materials. https://rwandatrade.rw/media/MINICOM%20Construction%20Materials%20MasterPlan.pdf 11) PwC analysis based on Prof. A. Damodaran data, 2020. 12) Schmidt, W. and Kuehne, H. (2018). 'Materials And Technology Solutions To Tackle The Challenges In Daily Concrete Construction For Housing And Infrastructure In Sub-Saharan Africa', African Journal of Science, Technology, Innovation and Development, vol.11. https://www.tandfonline.com/doi/abs/10.1080/20421338.2017.1380582 13) Construction Industry Development Board (2007). The Building And Construction Materials Sector, Challenges And Opportunities. http://www.cidb.org.za/publications/Documents/The%20Building%20and%20Construction%20Materials%20Sector,%20Challenges%20and%20Opportunities.pdf 14) Ampofo-Anti, N. (2010). Green Building Handbook for South Africa: The Environmental Impacts Of Construction Materials Use: A Life Cycle Perspective. CSIR Built Environment. https://researchspace.csir.co.za/dspace/bitstream/handle/10204/3386/Ampofo-Anti_2009.pdf?sequence=1&isAllowed=y 15) Ministry of Trade and Industry (2011). National Industry Policy. Republic of Rwanda. http://www.minicom.gov.rw/fileadmin/minicom_publications/policies/Industrial_Policy-2.pdf 16) Ministry of Trade and Industry. Industrial Sub-Sector Master Plan For Construction Materials. Republic of Rwanda. https://rwandatrade.rw/media/MINICOM%20Construction%20Materials%20MasterPlan.pdf 17) Ministry of Infrastructure (2009). Rwanda National Construction Industry Policy. Republic of Rwanda. https://www.rutsiro.gov.rw/fileadmin/templates/document/Amabwiriza_y_imyubakire.pdf 18) Ministry of Infrastructure. Policies And Legal Framework. https://www.mininfra.gov.rw/index.php?id=183%27A=0 19) Republic of Rwanda. Law N°10/2012 of 02/05/2012 Governing Urban Planning and Building in Rwanda. https://rema.gov.rw/fileadmin/templates/Documents/rema_doc/Laws%20and%20Regulations_Updated/Laws/Law%20governing%20the%20urban%20Planning%20and%20building%20in%20Rwanda.pdf 20) Republic of Rwanda. Law N°20/2011 of 21/06/2011 Governing Human Habitation in Rwanda.] 21) Republic of Rwanda (2015). The Prime Minister’s instructions No 002/03 of 05/05/2015 determining procedures for eradication of asbestos materials. 22) Rwanda Environment Management Authority (REMA). Mission, Vision and functions. https://www.rema.gov.rw/index.php?id=10 23) Ministry of Trade and Industry. About the Ministry. https://www.minicom.gov.rw/about 24) Rwanda Development Board. Incentives To Support The Manufacturing Sector. https://rdb.rw/investment-opportunities/manufacturing/#tab-1-3 25) SDG Tracker (2021). Measuring progress towards the Sustainable Development Goals. https://sdg-tracker.org/ 26) Sachs, J., Schmidt-Traub, G., Kroll, C., Lafortune, G., Fuller, G., Woelm, F. (2020). The Sustainable Development Goals and COVID-19. Sustainable Development Report 2020. Cambridge: Cambridge University Press. https://dashboards.sdgindex.org/profiles/RWA 27) Republic of Rwanda (2019). Voluntary National Review Rwanda 2019. https://sustainabledevelopment.un.org/content/documents/23432Rwanda_VNR_Document__Final.pdf 29) Afrik21 (2020). Rwanda: COPED processes single use plastics to make building materials. https://www.afrik21.africa/en/rwanda-coped-processes-single-use-plastics-to-make-building-materials/