The AFRICA123 initiative is a Continental Urban Development Framework to develop one hundred and twenty three new modern Regenerative SMARTERu-Urban Cities throughout Africa. Regenerative SMARTERu-Urban Cities (as explained in final section below) are underpinned by regenerative design principles and robust financial modelling, which informs how each new city is financially sustainable from the outset, and aligned with African Union Agenda 2063 Aspirations.
A substantial opportunity lies in the size and depth of The
Housing and infrastructure deficit in Africa
A 2014/15 World Bank report states that in Sub-Saharan Africa there are 200 million people living in slums and estimates that the housing deficit is 51 million units, forcing hundreds of millions of people to live in sprawling informal settlements. Africa as a whole is struggling to meet the demands to deliver dignified affordable housing at scale. Furthermore, Africa’s ability to provide adequate education, healthcare, public transport and other much needed basic services is woefully lacking. Without catalytic interventions that offer impact at scale, the situation will only become more desperate. Africa’s housing deficit is a US$ 20 trillion opportunity to stimulate the global economy.
Solution for Africa
To build 123 new modern Regenerative SMARTERu-Urban Cities across Africa with 123 million new homes and 123 million permanent jobs. Each of the 55 African Union Member States have the opportunity to have built 1, 2 or 3 new Regenerative SMARTERu-Urban Cities over the next 20 years, funded by AFRICA123 Development Fund. This initiative will alleviate the medium to long- term burden of rampant urbanization that threatens Africa, diverting the current mass migration from under developed rural areas to already overcrowded cities. This will be achieved through at scale creation of employment, and delivery of housing, education and healthcare as each new Regenerative SMARTERu-Urban City is built in carefully identified locations. This Pan-African initiative will kick-start the long-awaited Africa-wide Economic Transformation. AFRICA123 will significantly impact all the United Nations Sustainable Development Goals, which may well be a source to capitalize the AFRICA123 Development Fund.
This Pan-African initiative will kick-start the long-awaited Africa-wide Economic Transformation. Africa123 will significantly impact all 7 African Union Agenda 2063 Aspirations and all 17 United Nations Sustainable Development Goals (See detailed diagrams with definitions on Regenerative SMARTERu-Urban Cities page.
Now is the time to 1 – Identify, 2 – Plan and 3 – Build new Regenerative SMARTERu-Urban Cities, impacting every African living and for generations to come. This much needed modernization of Africa is not a tomorrow consideration. AFRICA123 is a now initiative that opens the door for Africa to the 4 th Industrial Revolution and the Digital Age, at scale.
By 2063, over 1.5 billion more Africans will be living in African cities, bringing the total African population to over 3 billion of which 80% or 2.4 billion will be living in cities. Current African cities are grossly inadequate and unable to deal with this rapid urbanization. This onslaught and Africa’s inability to feed, educate, care for, transport and generally provide basic services in new urban areas is at a tipping point. The ever- increasing percentage of destitute and homeless individuals adds further strain to already struggling economies of all African countries. There is an urgent need to build new urban settlements that are designed to be resilient, adaptive and focused on food, water and energy security, hence this coordinated approach to stimulate change through macro forces of continental proportions.
Africa urgently needs to build new urban settlements that are regeneratively designed, resilient, adaptive and focused on food, water and energy security.
AFRICA123 is an initiative by Regen Africa in association with communiTgrow Africa, who invite all Africans and the world to become Africa’s strategic partner in this must be done African initiative. AFRICA123 is fully aligned with the African Union’s Agenda 2063 Aspirations and the United Nations’ 17 Sustainable Development Goals.
Each new Regenerative SMARTERu-urban City’s location, design and planning will be co-ordinated by Regen Africa and communiTgrow supported by a team of international built-environment specialists guiding a team of local professionals and consultants from that specific country of each city-build. Implementation of each city-build will be delivered by local professionals, consultants, suppliers, contractors and workers in conjunction with strategic international service providers with transparent oversight to ensure unprecedented impact at scale to transform Africa into a developed continent.
International Finance & Construction
AFRICA123 as a coordinated African initiative can only be achieved with the initial financial support of the international community, creating a historical and unique opportunity for the world to collaborate with Africa as never before. Besides the upliftment and modernization of Africa, stimulating the global economy by US$ 20 trillion over the next 20 years.
AFRICA123 provides the world capital markets with the opportunity to deploy long-term infrastructure capital and to harness and incorporate the world’s expertise throughout the African continent utilizing global manufacturing capacity for decades to come. Capital, principally in the form of preferential soft loans to fund the Peak Funding requirement of US$150 billion to build all 123 new Regenerative SMARTERu-urban Cities resulting in over US$ 20 trillion in EPCM+F (Engineering, Procurement, Construction, Management & Finance) and BOT (Build, Operate and Transfer) contracts as a global economic stimulus. The African Union Development Agency (AUDA) has expressed its support for AFRICA123 as a Continental Urban Development Framework to assist in delivering on African Union’s Agenda 2063 Aspirations.
With the Peak Funding secured, the roll out of the initial bulk infrastructure, internal services and first phase top strctures is a certainty. The locals employed initially to build each new Regenerative SMARTERu-urban Cities will purchase their completed units and be funded through a Residential Mortgage Bond Fund. A Residential Mortgage Bond Fund associated with each new Regenerative SMARTERu-urban City allowing Africans to purchase their home via mortgage finance would be a first north of Southern Africa. The revenue generated from the first phases of homes will be rolled-over to finance the subsequent phases until project completion. The Securitized Home Loans Company will securitize the existing new loans to replenish its funding capabilities for the balance of the project with uptake of the securitized bonds by each country’s financial and pension fund industry.
123 new Regenerative SMARTERu-Urban cities: 1, 2 or 3 new Regenerative SMARTERu-Urban cities per country (based on country size, GDP & population).
x 1 Million (averaged) Residential Units of different typologies and affordability in each
new Regenerative SMARTERu-Urban city.
x 80 SqM as an average size per Residential Unit (ranging from 50 SqM apartment – 150 SqM house).
x US$ 900 per SqM as an average all in construction price (not including inflationary escalation allowance).
+ 40% cost increase of Total Residential build cost, to construct all Commercial pieces (Retail Shops, Offices & Industrial) plus required Community Facilities (Hospitals, Clinics, Early Childhood, Primary & High Schools, Universities, Administration Buildings, Sports Complexes, etc.), internally funded from Peak Funding.
+ 65% cost increase of Total Built-Environment cost, to construct and install all required Services Infrastructure for entire urban-build (Roads, Water Supply & Sanitation, Power & Electricity – Integrated Energy Plan with Renewable Energy Mix, Public Transport, Agriculture, etc.) with Utilities on BOT (Build-Operate-Transfer) basis.
Initially, the locals workforce employed to build each new Regenerative SMARTERu-Urban city will purchase completed units and be funded through a Residential Mortgage Bond Fund. A Residential Mortgage Bond Fund associated with each new Regenerative SMARTERu-urban Cities allowing Africans to purchase their home via 15 – 20 year mortgage finance, which would be a first for almost all African countries. Revenue generated from the first phase homes will be rolled-over to finance the subsequent phases until project completion.
The Home Loans Company will securitize the existing new loans to replenish its funding capabilities for the balance of the project with uptake of the securitized bonds by each country’s pension fund and financial services industry.
AFRICA123 – 3 STEPS PROCESS: 123 Regenerative SMARTERu-urban Cities Regenerative SMARTERu-Urban CITIES – 123 MILLION HOMES – 123 MILLION JOBS