Moladi proposal - Minister Lindiwe Sisulu - Use housing backlog to create entrepreneurs -

1. MCS Technologies P. O Box 16553 Emerald Hill, 6011 Honourable Minister Lindiwe Sisulu Department of Human Settlements Private Bag X644 Pretoria, 0001
21 August 2014
Honourable Ms Sisulu RE: The “Maslow Model” - Create enterprise at the Base of the Pyramid for the Base of the Pyramid We wish to present a solution by combining two “problem areas” and transforming them into “opportunity”. Two key issues that we face in Africa are that of unemployment and the huge backlog of affordable homes. Africa is a rapidly urbanising continent, which according to the UN Habitat, is increasing at a rate of 230,000 people who are moving into cities across Africa each week. Currently, sub-Saharan Africa alone has an estimated housing deficit of 30 million units and every year, the backlog of houses across Africa’s 54 countries collectively increases by 4 million houses. With the population of the African continent expected to reach a staggering 2 billion people by 2050, almost twice the population number estimated in 2010, it is a stark reality that every year, there will be more and more people needing homes, over and above the current demand. Decent quality housing is one of the key factors in the fight against poverty and social exclusion. It is not just about putting a roof over someone’s head. Academic research proves that access to a clean and stable home implicates an improvement in security, health and education. Although the extensive and many complex difficulties relating to the delivery of affordable housing in Africa is well documented, the ever-increasing demand for housing keeps mounting and continues to be a major concern. Projections by the United Nations would indicate that 53% of Africa’s inhabitants would comprise the urban population, of which 62% of city dwellers would reside in slums or informal settlements. What’s more troubling is that it appears that the incentive to move to the cities in Africa seems to be completely independent from economic growth and development and this is not expected to ease in the foreseeable future.

2. There is no doubt that the challenge facing the continent is colossal, but the question is whether conventional building methods are able to cope with the ever-increasing demand for quality homes. Moladi, a South African patented technology, established in 1986, makes housing accessible to low-income people through innovative and eco-friendly technology. An award winning, NHBRC and bank approved system; moladi combines construction with economic development - “Fight poverty unemployment and crime through housing.” Moladi offers training locally for the unemployed thereby creating jobs and empowering the community as a whole. Due to the simplicity of the method, construction techniques and skills can be transferred in a short time. In this way, the communities benefit from affordable shelter and entrepreneurs are skilled at the same time, creating employment. As you will recall, in 2006 moladi was presented with the Eric Molobi Innovation Hub Award in Parliament by yourself. Since then we have been invited by the Smithsonian Institute to exhibit at the United Nations in New York and recently by the World Bank to Washington to present moladi as a “Housing for All” solution to the International Finance Corporation (IFC). We currently export moladi to more than 20 countries and have formed key relationships with the world’s largest cement producer, Lafarge and Shelter Afrique with the aim of providing a more economical supply chain in the housing delivery process. We are passionate about housing and social development and believe that the moladi building technology is a significant instrument to overcome the following challenges:  Reviving and establishing rural villages  Creating functionally integrated and balanced urban settlements.  A key component and product to kick start the NDP Vision 2030.  Training the unskilled and unemployed to build for the destitute.  Creating skilled entrepreneurs in the construction sector.  Fighting poverty and unemployment through shelter and infrastructure development, eradicating mud schools with permanent structures.  Training and equipping inmates to enter the main stream economy.  To develop an entrepreneurial spirit at school level. Currently there are 800,000 graduates that are unemployed in South Africa. This means that our universities are producing a significant amount of unwanted skills for the needs of industry and our country.

3. This prompts the questions: -  Does our higher education system produce unemployable graduates?  Does our schooling system create unemployed youth after grade 12?  Should we relook at the antiquated 1900 English curriculum applied in schools today?  Are what is taught relevant to what is needed?  Should we not cater for children who are not mathematical or scientifically inclined?  Should we not teach basic entrepreneurial skills? “Everybody is a genius. But if you judge a fish by its ability to climb a tree, it will live its whole life believing that it is stupid.” - Albert Einstein. Not all children are mathematically inclined. Yet, if we measure children’s ability with maths and science as a yardstick of intelligence we may make them feel inferior and classify them as “stupid”. There are many careers that do not require maths and science as a base for a career and there are many examples of “success” without mathematics and science. Abraham Maslow’s hierarchy of needs state the basic fundamental needs are FOOD and SHELTER. Based on this simple premise, it is obvious that JOBS are created producing these two fundamental commodities. We believe that there should be three tiers of education: 1. Mathematics and Science (Status Quo) for those who are mathematically inclined
2. FOOD - Teach learners to produce food and related skills
3. SHELTER - Teach learners how to build and develop related entrepreneurial skills We propose to build two new classrooms per school in South Africa to cater for those learners who are not mathematically inclined and wish to follow a career in either “Food” or “Shelter” at early school level, in order to address the long-term needs of South Africa and Africa. We look forward to an opportunity to present our holistic approach in a more detailed and believe that with your support we can make a change in South Africa. Yours sincerely Mr Hennie Botes Chief Executive Officer