Offering Low-cost Housing Solutions

Sri Lanka

THE CHALLENGE

THE BUSINESS CONTRIBUTION

In Sri Lanka, 23% of people live below the poverty line

12.5% of the population still live in wattle and daub huts with few facilities

Challenge is to provide well-constructed affordable housing for the very poorest

Major world supplier of cement, aggregates and building-related services

‘House-for-Life’, initiative between Holcim Lanka and microfinance provider, Ceylinco Grameen to address the housing needs of this country’s very poorest

Custom-built home has been specially designed as a shop house, providing each family with the premises to run a small business.

Holcim Lanka provides initial funds and technical skills while Ceylinco Grameen administers the loans and maintains a close relationship with borrowers.

THE INNOVATION

THE BENEFITS

Loans follow the successful Grameen Bank model (from

Bangladesh), with a few local adaptations

Ceylinco Grameen provides intensive support for these

fledgling businesses

Women learn accounting and other

management skills and receive direct assistance

with marketing and distribution

When borrowers fail to meet their weekly

repayments two weeks’ running, a follow up

home visit helps them deal with any problems

Various model housings were developed , to influence the people and upgrading slum dwellings to decent

housing

Accommodates an average family of four or five and

also enhances the status of women in the local

community

Houses have modern sanitation and are served by water and electricity

Families have both boosted their income levels and

improved their quality of life.

Houses are built with cement locally produced and other locally sourced

building materials providing new commercial

opportunities for local producers and distributors.

Holcim aims to broaden its portfolio of housing

solutions, strengthen its reputation as a socially-

responsible company and embrace new business opportunities with low-income communities.

OBSTACLES

WAY FORWARD

Self-build input to home construction envisaged has been much lower than anticipated

Model house may not easily be transferable to urban slums, as construction will need to be adapted to specific local lots and this may push costs up significantly

Holcim Lanka’s ‘House-for-Life’ project is set to expand tenfold within the next year

Once the results of the initial pilot scheme have been assessed, Holcim hopes to partner with patient capital providers to facilitate this expansion of project

The partnership is also considering broadening their reach through splitting funding into loans for home construction and loans for home improvements