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Reducing the severe lack of Affordable Houses in sub-Saharan Africa
Not fundedGrant
$0raised
Project summary
The African Mega-Cities Initiative (AMCI) is a project of an international non-profit organization to be incorporated in Luanda, Angola. It focuses on providing affordable housing solutions in sub-Saharan Africa, particularly in current and aspiring megacities.
We intend to leverage blockchain technology to democratize real estate investment through tokenization, enhancing transparency, governance and accessibility. The project aligns its mission with the United Nations' Sustainable Development Goals (SDGs), aiming to address the housing crisis in rapidly urbanizing regions. By forming strategic partnerships with governments, NGOs, and private entities, AMCI seeks to create sustainable, inclusive housing solutions.
What are this project's goals? How will we achieve them?
The African Mega-Cities Initiative (AMCI) has three primary goals:
1. Provide Affordable Housing Solutions:
AMCI aims to address the critical shortage of affordable housing in urban areas of sub-Saharan Africa. It focuses on acquiring, developing, and rehabilitating residential properties to offer sustainable, low-cost housing for low-income families in rapidly growing cities.
2. Leverage Blockchain Technology:
AMCI seeks to use blockchain technology to democratize real estate investment through real estate tokenization. This will allow fractional ownership, enhance transparency, and make real estate investments accessible to a broader range of investors, including retail and institutional participants.
3. Promote self-sustainability:
The residential properties will generate financial income, and we intend to give it to our contributors (donors/investors), those who are fully committed to philanthropy can use these revenues to keep fueling AMCI projects and other altruistic endeavors, and those who wish to use their revenues otherwise, are free to do so. By aligning its residential projects with local urban development plans and leveraging complementary opportunities within the residential properties, we intend to become a Non-profit that generates profit for the sake of self-sustainability. Although we are focused on raising funds through asset tokenization we do not deny institutional and private donors to support us otherwise.
How Will These Goals Be Achieved?
- Acquiring, Developing, and Rehabilitating Properties: AMCI will identify high-potential urban areas with significant housing deficits and rehabilitate existing properties or develop new ones to meet local housing needs.
- Blockchain Technology: The organization will leverage blockchain technology for tokenized real estate contributions (donations/investments), providing transparency, security, and fractional ownership opportunities.
- Strategic Collaborations: AMCI will engage governments and other stakeholders to align its projects with local development goals, securing financial and logistical support for sustainable housing projects.
AMCI seeks to create scalable and replicable housing solutions across Africa through innovation and collaboration.
How will this funding be used?
The current funding for the African Mega-Cities Initiative (AMCI) will be primarily directed towards capacity build, namely two critical areas:
1. Legal and Compliance Costs: Formal Registration and Licenses:
- Formal registration: As AMCI operates internationally, a portion of the funding will be used for the formal registration of the organization in multiple crypto-friendly jurisdictions. This includes registering as a non-profit in various countries, ensuring legal recognition, and the ability to operate within local regulatory frameworks.
- Licensing and permits: Compliance with local real estate, construction, and blockchain laws will require AMCI to secure the necessary licenses and permits. This may include real estate development licenses, construction permits, and regulatory approvals for operating blockchain-based platforms, ensuring all legal obligations are met.
- Ongoing compliance: The funding will also cover legal consultations and audits to maintain ongoing compliance with evolving regulations in each country, particularly concerning real estate development, money laundering prevention, and using blockchain for tokenization.
2. Logistics:
- Securing basic compensation fund: Part of the funding will be dedicated to attracting appropriate talents and compensation for the next 6 months, we are talking about a personnel structure with 7 people maximum, to carry out operations in Luanda headquarters.
- Infrastructure costs: Funds will be used equally to pay the rent for the next 18 months and acquire the necessary furniture for the office.
By focusing on these critical aspects, we will be able to move forward with a solid foundation for expanding affordable housing solutions across sub-Saharan Africa.
Who is on your team? What's your track record on similar projects?
Currently, I am recruiting Co-Founders and other Team Members. This is my first time to lead a project like this. However, I've already founded 2 Companies in the Education Sector.
Apart from that I have 10 years of active military service in the Angolan Armed Forces, a proven capacity to operate under high-stress environments, solid leadership experience, multicultural awareness, and an international cooperation mindset due to previous experiences.
What are the most likely causes and outcomes if this project fails?
If the African Mega-Cities Initiative (AMCI) project fails, several causes and outcomes are likely to emerge:
Most Likely Causes of Failure:
1. Regulatory and Legal Challenges:
- Blockchain and tokenization regulations: AMCI’s reliance on blockchain for real estate tokenization could face hurdles due to unclear or restrictive regulations in certain jurisdictions. Failure to navigate these complex regulatory environments could halt funding efforts and disrupt project execution.
- Real estate development regulations: Inability to secure the necessary land use permits, and construction licenses, or meet legal property requirements in different countries could delay or stop the development of affordable housing.
2. Funding and Financial Constraints:
- Insufficient capital: If AMCI cannot raise adequate funds through token sales, partnerships, or government grants, it may not have the financial capacity to acquire land, develop properties, or maintain operations.
- Contributor hesitation (Investor/Donor): Uncertainty about the long-term value of blockchain-based real estate investments or mistrust in the tokenization model could result in fewer contributors (Donors/Investors), undermining the project’s financial viability.
3. Technological Risks:
- Blockchain adoption challenges: AMCI’s reliance on blockchain may be hindered by technical issues, cybersecurity threats, or low adoption rates, especially in regions with limited technological infrastructure.
Most Likely Outcomes of Failure:
1. Missed Affordable Housing Targets:
- Failure of the project would mean that the targeted low-income families in sub-Saharan African megacities would remain underserved, continuing to face severe housing shortages. This would leave the housing deficit in these regions unaddressed, perpetuating the cycle of poverty and poor living conditions.
2. Financial Losses for Contributors (Donors/Investors) and Partners:
- If the project fails to generate returns through tokenization or property rentals, contributors (donors/investors), particularly those participating through the blockchain platform, may face financial losses. This could damage AMCI’s reputation and lead to reduced trust in similar future projects.
3. Reputational Damage:
- AMCI’s failure could tarnish its reputation as a credible non-profit organization, making it harder to secure future funding or partnerships. The failure may also negatively impact the perception of blockchain technology in real estate, particularly in the African market.
4. Regulatory and Legal Repercussions:
- If AMCI fails to comply with local or international regulations, it may face legal action, fines, or penalties. This could also result in the forfeiture of land acquisitions or the inability to proceed with future developments.
5. Lost Opportunity for Innovation in Housing:
- The failure of AMCI would represent a missed opportunity to demonstrate the potential of blockchain technology to democratize real estate investment and solve housing challenges. It could slow down innovation in the affordable housing sector, particularly in sub-Saharan Africa.
In summary, the failure of the AMCI project would likely stem from regulatory challenges, funding shortfalls, partnership issues, or technological risks. The outcomes would include continued housing deficits, financial losses, reputational damage, and missed opportunities for innovation in the affordable housing and blockchain spaces.
What other funding are you or your project getting?
As of now, the African Mega-Cities Initiative (AMCI) is seeking to secure funding from multiple sources to support its affordable housing projects in sub-Saharan Africa. These potential funding sources include:
1. Real Estate Token Sales:
- AMCI plans to raise capital through the tokenization of real estate assets on a blockchain platform. Contributors (Donors/Investors), both local and international, will be able to purchase tokens representing fractional ownership in AMCI’s affordable housing projects, generating revenue to finance property development and rehabilitation.
2. Government Grants and Subsidies:
- The initiative aims to align its projects with government urban development plans to qualify for grants and subsidies. AMCI is actively seeking partnerships with local and national governments that provide financial support for affordable housing projects.
3. Strategic Partnerships:
- AMCI is pursuing partnerships with non-governmental organizations (NGOs), private sector entities, and international development agencies. These partnerships may provide financial backing, technical assistance, and logistical support, reducing the overall operational costs and providing a broader base of funding.
4. Donations and Sponsorships:
- AMCI is also exploring opportunities to receive donations from philanthropic organizations, charitable foundations, and individuals who support affordable housing and sustainable urban development. Corporate sponsorships may also be sought to fund specific aspects of the initiative.
5. Rental Income:
- After developing and rehabilitating properties, AMCI intends to generate rental income from long-term leases on these properties. A portion of this income will be directed back to contributors (donors/investors) holding tokens, while the rest will be reinvested into further housing developments.
6. International Development Funding:
- AMCI is considering seeking financial support from international organizations and development banks, such as the World Bank or the African Development Bank, which have programs specifically targeted at improving housing and infrastructure in developing regions.
By diversifying its funding sources, AMCI aims to ensure financial stability and scalability for its projects, while reducing reliance on any single stream of revenue.
Kindly...
António Quizela