Hot startup of the month: Ethiopia's Kubik

Sustainability in Africa's information and communications technology (ICT) ecosystem has become essential to paving the way for the continent's economic growth, job creation, and environmental conservation plans. As the continent embraces digital transformation, African startups have been integrating green technologies to mitigate climate change and reduce carbon footprints.

Moreover, Africa is on the brink of a groundbreaking opportunity to become a global leader in sustainable energy solutions. The ICT sector stands to gain the most from this transformative shift.

A standout player in this ecosystem is Ethiopia's Kubik, a green ICT startup that transforms plastic waste into eco-friendly, affordable construction blocks. By transforming plastic waste into low-carbon, durable building materials, the startup is tackling two key issues.

"Kubik was founded out of a deep concern for two pressing global issues – plastic waste and the affordable housing crisis. Growing up in Addis Ababa and working in various cities around the world, I witnessed firsthand the impact of unmanaged waste and the urgent need for sustainable housing," Kubik Cofounder and CEO Kidus Asfaw said in an interview with Connecting Africa.

Asfaw explained that his past experience with UNICEF, where he partnered with the Cote d'Ivoire office to build classrooms from recycled plastic bricks, was a turning point for him.

"We saw how this initiative not only addressed waste but also provided affordable, durable building materials," he added.

"That success inspired me to establish Kubik in 2021, aiming to scale this technology and create a broader impact by transforming hard-to-recycle plastic waste into innovative building solutions," he continued.

He mentioned that seeing that classroom being built from plastic was a pivotal moment as it demonstrated that using recycled materials in construction was not only feasible but also highly effective in addressing both waste management and educational infrastructure needs.

"That project showcased the potential for scalability and inspired us to think bigger. We realized that this approach could be applied to tackle the broader housing deficit across Africa and beyond, leading to the founding of Kubik with the mission to provide low-cost, sustainable building materials on a larger scale," Asfaw asserted.

Kubik's technology explained

Asfaw said Kubik's technology involves converting hard-to-recycle plastic waste into durable building materials through a process that includes sorting, cleaning and extrusion.

"The resulting materials, such as interlocking bricks, beams, and columns, are designed to be cost-effective and environmentally friendly," he explained.

Kubik Cofounder and CEO Kidus Asfaw. (Source: Kubik)

He added that these materials are at least 40% cheaper, twice as fast to build with, and five times less polluting than traditional cement-based materials.

"The unique 'Lego-like' design allows for easy assembly and reduces the need for skilled labor. This innovation sets Kubik's products apart from other building solutions, offering a sustainable alternative that doesn't compromise on quality or safety," he continued.

Asfaw believes that innovation is at the core of Kubik's mission as the company continuously seeks to improve its technology and processes to make construction more sustainable and affordable.

"By developing new ways to upcycle plastic waste and partnering with various stakeholders, we aim to revolutionize the construction industry," he said.

"Innovation ensures that our materials are not only eco-friendly but also meet the structural and safety standards required for housing. This focus on innovation enables us to provide solutions that are both practical and impactful," Asfaw explained.

Kubik's funding and expansion

In April, the company completed a US$5.2 million seed funding round, making it the first Ethiopian company to raise a multimillion-dollar investment in climate and sustainability solutions.

Investors in the round included leading East African venture capital firm African Renaissance Partners; net-zero focused investor Endgame Capital; and climate and extreme poverty investor King Philanthropies.

"We are thrilled to close our $5.2 million seed funding round and welcome our stellar new investors. They have seen Kubik's compelling market opportunity, our delivery against our strategy to date, and share our purpose-driven vision – to build sustainably and affordably to a brighter, greener future," Asfaw said at the time.

Asfaw highlighted the company's plans to expand by leveraging partnerships with real estate developers and municipal governments.

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"Our strategy includes scaling our production facilities and building a robust supply chain for plastic waste. By providing low-cost, high-quality building materials, we aim to incentivize developers to construct more affordable housing," he said.

"We are also exploring collaborations with various stakeholders to enhance our technology and ensure our materials meet the necessary standards. Our goal is to address the housing deficit by making sustainable, affordable housing accessible across the continent," he concluded.

*Top image is of Kubik representatives. (Source: Kubik.)

— Matshepo Sehloho, Associate Editor, Connecting Africa