Fixing Africa’s housing crisis through green building investments

As the construction industry in Africa continues to boom, concerns over the environmental impact of traditional building materials have led to a growing interest in green building solutions. James Mitchell, Co-Founder of BuildX Studios, spoke to CNBC Africa about the potential of green buildings to attract more investments and revolutionize the job market on the continent. With buildings and construction contributing nearly 40% of global carbon emissions, the shift towards sustainable and low carbon materials is crucial for mitigating environmental damage. Mitchell highlighted the shift towards using renewable materials like wood, sourced from commercially grown plantation forests that act as carbon sinks. This sustainable approach not only helps reduce the carbon footprint but also allows for the construction of taller buildings, providing a viable solution for the continent's housing crisis. Affordable housing remains a top priority in many African countries, and Mitchell emphasized the need for low-cost, quality materials to meet the demand. While initial costs for wood-based construction may be higher, economies of scale in manufacturing can make them cost-competitive with traditional materials like concrete and steel. Additionally, the speed of construction using wood-based materials is significantly faster, offering a solution to the urgent need for affordable housing. Different environments require tailored housing technologies, with natural stone masonry and engineered earth construction being popular choices for peri-urban and rural areas. In urban settings, the advancement of mass timber construction now allows for the use of wood in high-rise buildings, matching the strength and fire performance of traditional materials. The adoption of green building practices has already been seen in projects across South Africa, Tanzania, and Kenya, with increasing demand driven by environmental considerations and the health benefits of sustainable buildings. While the momentum for green building is gaining traction, challenges remain, particularly around sustainable forest production, building codes, and government policies. Mitchell emphasized the role of governments in stimulating the market through tax incentives and policy support to drive down costs and accelerate the adoption of green materials. Investment in the green sector is crucial to scale up production and reduce the cost premium associated with sustainable technologies. Currently representing a minority share in the total building sector, green buildings have the potential to attract increasing interest from both impact investors and commercial capital, signaling a promising future for eco-friendly construction in Africa.