This Development Workshop Angola's Friday debate is in English and features Joe de Swardt, Head of Enterprise Programmes and Partnerships at Homeless International, on the CLIFF Fund's strategy of investing in housing for the poor. Joe has been in Angola helping in the creation of DW's new social housing enterprise HabiTerra.

1. …the Friday Conversation
Joe de Swardt
(Jão Negro)

2. Nations by % of people living in slums

3. Slum Population in Africa

4. TRIPOD MODEL
1
Sustainability W
= X+Y+Z
Micro Loans/
Service
Payments
Infrastructure
Projects/
Services
CDE
(Z)
CDE
(Z)
X
Y
W
CDE’s: 4 Core Competencies
1. Intermediation Competency
Community Development/ Land
Development: Ability to mobilise
communities, undertake
participatory planning, enumerate
and vet communities
2. Real Estate/ Property
Development Competency:
Technical, Planning, Financial
Modelling, Project Management
and Property Development and
Land market
2 3
4
3. Financial Services Competency:
Loan Design, Loan Origination and
servicing, Finance Markets
4. Integrative and Fund Management
Competency: How 1,2,3 come
together

5. D1DESIGN/ MODELLING
PHYSICAL DEV
DESIGN / MODELING:
END USER LOANS
INST'L
DESIGN
/MODELING:
DEV FINANCE
STRUCTURING
B1
B3B2
D2
D3
PHYSICAL
PLANNING
PEOPLE
PLANNING
PIPELINE PLANNING
C1
C3 C2 E2
E1
E3
LOAN VETTING &
ORIGINATION
LOAN
MANGEMENT/
SERVICING
A2 A3
A4
CONSTRUCTION
SUPPLY CHAIN
MANAGEMENT
POST CONSTRUCTION
MANAGEMENT
CONSTRUCTION
MANAGEMENT
TREASURY/ FUND MANAGEMENT
END USER/ LOAN
FINANCE MARKET
LAND COMMUNITIES
PROJECT
MANAGEMENT
ACCOUNTING/
MODEL BANKING
A1A1
STRATEGIC
PIPELINE
REAL ESTATE FINANCE

6. TANGIBLE DELIVERABLES
Market Engagement
People/Group Engagement
Government Engagement
1
5
Community Engagement
Investor Engagement
2
3
4
Start up
Sustainable
Finance
ROI
1000 - 2000 units p.a
200 - 500 units p.a
500 - 1000 units p.a
Unit Yield (Shelter)
25% IRR*
5% IRR
Institutional
Sustainability
Surplus
Sustainable
Break-even 0% IRR
Dependent
n/a
Project Deliverables

7. Where we Work
Namibia
South Africa
Zimbabwe
Tanzania
Kenya
Philippines
Nigeria
Burkina Faso
Senegal
India
Pakistan Nepal
Angola
Zambia Malawi
Sri Lanka
21 Organisations, 16 Countries

9. We want to tell you all about CLIFF’s work

10. Meet our family.
We live in one of the fastest growing cities in the developing world.

11. Currently we are living in an informal house, not safe and not secure.

12. So many other households are in the same situation as us and very few
new plots of land, let alone houses become available each year.

13. Many people are living in informal shacks or overcrowded rental rooms.
It is not possible to easily buy a house.

14. Like many people in our city, we are struggling to find a decent.
permanent place to live.

15. We struggle financially, but we try our best to save every bit of money
we can.

16. But, it seems that our savings are always running away.

17. The city we live in is really quite congested. Finding a piece of land is
proving to be very difficult.

18. The lists of procedures and conditions we are told to adhere to is so
complicated, long and confusing that we simply don’t know what to do.

19. Because of all these difficulties, we got some our neighbours, family and
friends, who all suffer from the same problems as we do, together and
together we formed a new group to support each other.

20. The group elected a chairman, a secretary and a treasurer to guide us
and to represent us. The first task is to get some support as none of us
know exactly what process to follow to realise our ambition.

21. The biggest obstacle for all of us is that we have very low income and
nobody seems to take us seriously. We all plan to help each other, to
work hard, but it seems that nobody believes us.

22. The government,
The banks,
The property developers and land owners,
Seem to pay no attention to us.

23. We hope that one day we will release our dream of a safe and secure house.

24. Meet a CLIFF Implementing Partner
CLIFF* Implementing Partners work with Homeless International and
donors like DFID**
and SIDA***
to open doors for people like the family we
just met.
*Community Led Infrastructure Finance Facility (CLIFF)
**Department for International Development (UK)
***Swedish International Development Cooperation Agency

25. CLIFF aims to build ‘Third Sector’ organisations, with the mission to
deliver URBAN settlement solutions.
The organisations are ‘Social Enterprises’ – meaning that we are
organisations committed to plough all our profits back into our work,
even though we operate as smart as any commercial business.
Government
Corporates & Business
Third Sector
Organisations

26. NATIONAL
GOVT
LOCAL
GOVT
Primary
Secondary
Service Provision Spheres:
Unserviced Urban
Communities
Participation,
planning, provision
and management
GAP
Why 3rd
Sector: Tertiary Provision Gap

27. NATIONAL
GOVT
LOCAL
GOVT
3S
3S
3S
3S
3S
Why 3rd
Sector: Tertiary Provision Gap
Service Provision Spheres:
Tertiary
Service
Providers
Primary
Secondary
Serviced Urban
Communities
Recognising and
building a
Tertiary Sector

28. “ Developing civil society (3rd
sector*) organisations that create settlement,
shelter and services solutions that are socially, environmentally and
financially sustainable”
OR
Mission
(* Social Enterprises/ Co-operatives/ CDC’s/ Housing Associations)
Building Organisations that build houses

29. Even if they feel as if a home is always out of reach and so many other
families are competing with them to get access to extremely limited
options, scarcely available.

30. Although many people believe that the government needs to pay more
attention to the growing urban crisis in the developing world. Most
developing governments simply do not have the money to play a
significant role and struggle with delivering rudimentary and basic
services.

31. In most instances government can play a much more significant role in
governing the sector, preventing corruption, updating regulation and
laws…

32. …and reducing the number of bureaucratic hoops to jump through in
getting proper property rights to all.

33. We work, think and design with:
•Government, Businesses, Banks, International Agencies,
•and Local COMMUNITIES.
To develop innovative solutions that are affordable to the urban poor.

34. We target households or groups of households within the bottom 40% of
the economic income pyramid. These are our customers and our
members.

35. We help them to make good decisions.

36. We cut through all the red tape that prove to be an obstacle to our client
members.

37. Due to our experience and our professionalism, we can guide people
through the complexities and many obstacles that face them in reaching
their goals.

38. We unlock the financial potential of families, even if they are poor.

39. We carefully investigate exactly what a family or a group of families can
afford.

40. We calculate a design budget based on what people can really afford.

41. We employ and train experts loan officers that know how to assist
families to calculate their real income and what they can safely afford in
repayments.

42. …or with a property that proves to be a crushing investment.

43. As reputable organisations, we are able to attract money.

44. We act as intermediaries between urban poor people and other
stakeholders like government, banks, development institutions, donors,
local and international organisations interested in the urban sector.

45. We structure and leverage money to the best of our ability, capacity and
means so that we can deliver a range of solutions.

46. We use our networks and connections to find and design solutions. We
advocate good practice and for change to lower costs and barriers faced
by the urban poor.

47. Using our knowledge of the city, how it works and where it is growing…

48. …we find land.

49. Navigating through the maze of obstacles fencing in suitable
development land.

50. …to find just the right piece of land to develop.

51. Obtaining legal right and title to the land.

52. We try to look at many alternative designs that fall within the client
group’s affordable budget.

53. The Project Finance a variety of different products, including the:
LAND

54. Site surveys and demarcation of individual properties and boundaries.

55. Roads and other bulk site services.

56. Access to potable Water.

57. Sanitation

58. Energy and electrical connections

59. Appropriately designed House

60. Complying with all the design brief requirements and legal requirements.

61. Finalising the design and obtaining approved Plans.

62. Achieving cost savings and economies of scale through supply
management and good procurement.
Sometimes we make the building components ourselves to bring the cost
down.

63. Contractor procurement, tenders and selection process.
Some of us do the construction in house, particularly the larger CLIFF
Partners.
✔

64. Construction supervision and control.

65. Project Management

66. Project Quality Control

67. After construction completion, we release the agreed loan to the client
household or group.

68. Loan administration, auditing and reporting is completed so that our
clients can receive statements.

69. At the end of the loan, the property title that so far remained with us as
collateral during the loan management period, is transferred into the
name of the new owner.

70. At the end of the loan period, once all the households have repaid their
loans, we are in a position to complete the repayment of the CLIFF
Capital Loan back to Homeless International.

71. At the end of the project we work out the actual return on investment
against the originally planned and then we plan our own reinvestment
and recycling of our investment returns.

72. We seek to develop our own Organisational and Capital sustainability by developing its own asset base,
consisting of both financial (loan book) and fixed assets (property).
We charge a small fee for our role in the property development and a percentage of interest to cover
our costs in loan management. This revenue covers our operational costs, making us operationally
sustainable.

73. Without professional help, building your own house can prove a costly
exercise. Although poor communities are very ingenious, built-
environment professionals are crucial.

74. …we help to stop poor communities vulnerabilities to the exploitation by
unscrupulous slum landlords.

75. …we help to stop poor communities vulnerabilities to the exploitation by
unscrupulous loan sharks.

76. We are part of only a few groups that are striving to create orderly,
designed neighbourhoods as an alternative to the sprawling informal
settlements.
The houses we develop become part of the economy, form the foundation
for an urban tax base and enable permanent service development.

77. With planned and designed solutions, we achieve greater urban densities
and stop urban sprawl, utilising scarce land reserves more efficiently.

78. We provide safe places to live, away from zones prone to natural
disasters and the impact of climate change.
Well designed formal housing are significantly better for not only the
human ecosystem, but also for the environment as a whole.

79. Urban real estate development creates jobs and develop a range of
supply industries that help the economic development.
Very little of the components used in CLIFF housing originates outside of
the domestic market.
Construction ticks all the economic development boxes.

80. Access to land and property markets create the wealth of CAPITAL
formation for poor households, leveraging value and worth far in excess
of the actual cost of repayment.

81. By staging the overall housing development in increments, starting with a core
house that can be added to once the initial loan repayment completes, more
poor families can afford the product, creating a larger new property market.

82. With more investment in CLIFF, more Implementing Partners can achieve
bigger operational scale, creating access for more families, achieving
improved returns and economies of scale.

83. Incremental Housing

84. Low Density

86. Low Density

87. Low Density

88. Low Density

89. Medium Low Density

90. Medium High Density

91. High Density

92. Rental

94. Large Scale Projects

95. CLIFF is not just
Housing…

96. Toilets

97. Toilets

98. Small Communal Toilet

99. Children’s Toilet

100. Doing Business In A Playful Way

101. Large Communal Toilets

102. Disability Housing and Child Led
Families

103. Skills Development

104. Entitling Women

105. Procurement & Logistics

106. Manufacturing

107. Manufacturing

109. Artisan Development &
Employment Creation

111. Women in Construction

112. Advocacy

113. Communication

114. Administration and Training

115. Working Together

116. Modeling and Design

117. Modeling and Design

118. Modeling and Design

119. Energy

121. Thank You