Cost-effective & green solutions for sustainable construction

Ethiopia, known for its rich history and cultural heritage, is now making waves in the construction industry with a groundbreaking approach to sustainable building materials. By utilizing recycled plastic waste to replace traditional construction materials, a company called Cubic is leading the charge in offsetting carbon emissions in the construction industry's value chain with innovative upstream production methods. CNBC Africa's Ridhima recently sat down with Cubic's CEO, Kidus Asfaw, to delve into the challenges they face in revolutionizing the construction industry and making their sustainable products cost-effective. The conversation shed light on the remarkable environmental and economic benefits of Cubic's approach. Asfaw explained that their focus lies in replacing walls, a key area where cement, a major contributor to greenhouse gas emissions, is traditionally used. By using Cubic's materials, builders in Africa can significantly reduce their carbon footprint while also enjoying a more cost-effective solution. The CEO emphasized that per square meter of wall built, Cubic's materials are almost five times less polluting than cement-based building materials. Additionally, they are at least 40% cheaper per square meter, making them an attractive option for builders in the markets they are exploring. The conversation turned to the challenges of breaking away from the construction industry's historical reliance on fossil fuels and cement. Asfaw highlighted the supply chain issues, particularly in countries like Ethiopia where there is a significant deficit in cement supply. Cubic is not only aiming to address the cost burden but also the availability of sustainable inputs, such as their recycled plastic materials, to help developers meet the demand for affordable housing across the continent. Government support was also discussed as a crucial factor in further reducing costs and improving supply chains. Asfaw underscored the importance of policy and infrastructure support from governments to incentivize the use of sustainable materials in construction and streamline the supply chain processes. Collaboration with governments and municipalities, he explained, can help drive awareness and adoption of these new building methods, ultimately benefiting populations in need of affordable housing options. The conversation then pivoted to the challenges of accessing and processing the necessary materials, particularly in regions where segregation of plastic waste remains an issue. Asfaw emphasized the importance of creating demand for specific types of plastic and lowering barriers for collectors to sell their materials. By simplifying the process and empowering waste collectors, Cubic is not only addressing the plastic waste crisis but also creating employment opportunities within the waste collection sector. Despite these challenges, Cubic has seen significant uptake of their green building materials in the areas where they operate, with real estate developers embracing the cost-effective and environmentally friendly solution. Asfaw attributed this success to Cubic's focus on product simplicity and affordability, making their materials accessible and appealing to the price-sensitive real estate industry. The interview concluded with a discussion on the role of carbon tax in the construction industry and its potential to drive greener practices. Asfaw highlighted the opportunity for the real estate sector to participate in carbon credit markets, leveraging incentives for carbon reduction to further innovate in sustainable building materials. He shared Cubic's ambitious goal of avoiding greenhouse gas emissions by a quarter megaton annually through their production methods, positioning the company as a key player in the transition to a more sustainable construction industry. Through their pioneering efforts, Cubic is not only revolutionizing the way buildings are constructed in Ethiopia and beyond but also setting a new standard for environmentally conscious and cost-effective practices in the construction sector.