Human Settlements Review - Parliamentary Monitoring Group

Human Settlements Review, Volume 1, Number 1, 2010
business with regard to the
technology. This allows the business
to tender for certain contracts as these
certifications are a requirement of the
tender process. However, as a startup
business, many of the businesses
do not necessarily have the cash to
conduct the entire product testing
required. The ABT team is evaluating
workable solutions to this challenge.
homes are too small to build a substantial
cash flow. Although there is a greater need
for subsidised homes, businesses will be
more profitable and sustainable if they supply
affordable bondable homes and homes in the
high end market.
Sasol ChemCity’s positioning in
the Alternative Building Technology
Industry
- Government Subsidies: Most
entrepreneurs find it challenging to
build a quality home where the costs
fall within the government subsidy. It
is the opinion of some entrepreneurs
that the government subsidy amount
be increased to ensure that a better
quality home can be built.
The second challenge identified is risk of cash
flow of business. As a start-up business, on
time payment from clients is crucial for the
sustainability of the business. This risk is even
higher when businesses supply subsidised
homes as the profit margins on subsidised
Sasol ChemCity is committed to working in
partnership with government and partners
in all spheres to foster development. The
collaboration between Sasol ChemCity and
its partners is intended to assist in facilitating
enterprise development and the associated
job creation. Knowing the challenges faced
by the entrepreneurs in the alternative
building technology space, Sasol ChemCity
has created a value chain that will allow the
entrepreneurs to overcome the most difficult
challenge – access to the market.[Figure 2]
Figure 2: Alternative Building Technology Enterprise Development Model
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