Housing for All Egypt Presented by Ashoka Arab World at the 2009 Tällberg Forum,

as part of the Tällberg Foundation’s Rework the World Initiative

Overview Housing for All (HFA) is revolutionizing the housing industry in Egypt’s urban and peri-urban slum areas, by mobilizing existing actors from various sectors of society to contribute their efforts and relevant expertise to solve the challenge of affordable, environmentally-sustainable housing in low-income communities, while concurrently addressing widespread unemployment among youth. The HFA Egypt pilot will upgrade and improve existing informal housing in four squatter areas located in Cairo, Minya, Beni Suef, and Southern Sinai. After 30 months of operation, the program will cover all of its costs, and, in 5 years, the program will have served 18,000 families and provided 11,000 job opportunities. If HFA reaches only 20% of Egypt’s population, it will create approximately 100,000 job opportunities. HFA unites 5 main actors (microfinance institutions, private sector, universities, communities, and youth) that are common to many, if not all, of the world’s regions in need of solutions to the social, economic, legal, and environmental challenges associated with urban slums. By creating a scenario where the interests of each group are met, and where each group’s expertise is leveraged for the benefit of program objectives, the HFA model presents potential for replication throughout Egypt, the Arab region, and beyond. Micro loans, administered by the existing microfinance institutions (MFIs) of Ashoka Fellows, will enable trusted community members to pay for the materials and labor needed to upgrade their homes in stages. For example, a family might first add a bathroom, or build an interior wall. HFA will not provide for the construction of stand-alone housing units. Through partnerships with the private sector, HFA will offer construction materials to loan recipients at a rate lower than the retail value. The private sector will benefit by cutting out traditional middle men in order to access “the base of the pyramid,” consumers whose informal building projects make up approximately 90% of the housing market in Egypt. With the help of engineers and university students specializing in architecture, engineering, and design, the program will improve building methods in squatter areas and promote environmentally-sustainable methods in housing construction. Innovative sustainable designs suitable for HFA clients will be identified through an international competition, and private sector partners will be encouraged to produce environmentally sustainable construction materials. HFA will address the challenge of youth employment by facilitating skills training and employment opportunities for local youth and youth from other communities, in housing construction and other aspects of HFA program operations. HFA will also provide numerous other employment opportunities for members of the local communities where the program works. The HFA Cooperative will be developed during HFA Egypt’s second phase. Partner MFIs will house the Cooperative, which will be wholly-owned by key stakeholders in the program, with the objective of advocating on behalf of local communities’ housing rights of at the national policy level. Partner MFIs and citizen organizations will own 51% of the cooperative, local community members will own 35%, and private sector partners will own 14%.

Partners The following groups make up the key components of the Housing for All pilot, enabling the comprehensive, highly replicable nature of the program:

Microfinance Institutions (MFIs): Four existing microfinance institutions, led by Ashoka Fellows, will act as Housing for All Centers and facilitate the HFA Cooperative during the pilot phase. They will coordinate micro loans that will enable community members to upgrade their homes in stages. These MFIs have long-standing experience administering financial services in the selected low-income communities. The trust and extensive networks the MFIs have developed will be of great benefit to HFA, as will their understanding of their clientele. Only the most dependable microfinance clients will participate in HFA, minimizing the risk of default.

Private Sector: Producers of housing construction materials will provide supplier credit to HFA. Ashoka is engaging key private sector champions to facilitate this cooperation.

Universities: Local university students concentrating on relevant fields will contribute to HFA as part of their end-of-the-year project, an annual requirement for all university students. Working under the supervision of Ashoka Fellows who specialize in sustainable housing, students will assist in the design and implementation of architecturally-sound and environmentally-friendly units.

Communities: By participating in HFA, communities will not only upgrade their homes, but through the HFA Cooperative, they will become stakeholders in the program and in the determination of their own futures. HFA’s advocacy program, to be developed as a component of the Cooperative, will represent the concerns of these communities and hold government accountable for recognizing their rights.

Youth: In addition to the university students, youth from a variety of backgrounds will play an important role in, and stand to benefit from, HFA. The program will facilitate skills training and employment opportunities for local youth and youth from other communities, in housing construction and HFA’s marketing and community engagement program.

Environmental Sustainability Housing upgrades will be built according to methods, materials, and design at the cutting-edge of environmental sustainability. HFA will hold a competition for students, designers, architects, and engineers to identify housing designs that will be incorporated into the HFA building models, and Ashoka Fellows who are experts in sustainable construction will supervise implementation. Entries to the competition should address utility to local communities and maximize all factors of sustainability. Leading global experts in sustainable design will select the winning designs. HFA will encourage its private sector partners to produce “green” building materials for use in HFA upgrade units. By managing the private sector’s access to a critical mass of prospective consumers, HFA will be able to require these partners to produce goods containing a certain percentage of recycled material, for example. Because such goods are minimally accessible on the Egyptian market, even to higher-income consumers, this presents a significant opportunity to raise awareness and facilitate more sustainable building construction across society. Employment After 5 years of operation, HFA will serve 18,000 families and provide 11,000 job opportunities associated with the manual construction of the upgrade units. If HFA reaches only 20% of Egypt’s population, it will create approximately 100,000 such opportunities. HFA will provide opportunities for practical experience to all involved university students and applicants to the competition for sustainable housing design. The program will also employ a program manager, promoters to engage target communities, and select staff of the HFA Cooperative and partner MFIs (e.g. accountants, credit officers, etc.). Requested Support In order to successfully implement HFA’s pilot phase, Ashoka will need the following financial and strategic support:

Initial cash investment of $1 million. After 30 months, when HFA is able cover all of its running costs, HFA will need the support of an investor able to guarantee micro loans, totalling approximately $100 million, to be administered by 100 partner MFIs.

Support of experts in sustainable design, to judge competition and approve “green” factor of designs implemented by HFA.

Link to students and youth who can contribute to HFA and benefit from employment opportunities, through YES and other networks of engaged young people.