Adaverse, a Cardano ecosystem accelerator in Africa, has announced its investment in HouseAfrica, a proptech company that leverages blockchain technology to digitise and enhance land ownership in Africa. Adaverse joins other prominent investors in this funding round to aid HouseAfrica’s growth trajectory and expansion into new markets.
The investment will be used to expand HouseAfrica’s operations and integrate its solutions with Cardano, a third-generation blockchain, to offer a more efficient and secure means of land registration and property ownership in Africa.
“Land ownership is a key factor in a country’s economic growth, providing a foundation for investment and development. HouseAfrica is uniquely positioned to address the challenges of land ownership which will have a profound impact on the lives of millions of Africans, and we are excited to be part of this journey”, said Vincent Li, founding partner at Adaverse.
Africa’s real estate market is rapidly growing and evolving, with a current valuation of $15 trillion, it is expected to reach a value of $20 trillion by 2028. While growth dynamics may vary across countries and regions, common obstacles persist. These challenges include high transaction costs, limited access to financing, and a lack of transparency in land ownership, which has hindered investment, particularly from the diaspora. Traditional land tenure systems prevalent in many African countries also make it challenging for women and the uneducated to legally own land, further limiting their economic prospects.
However, there is a growing recognition of the potential of technology, including blockchain, to address these challenges and unlock the sector’s full potential. In Nigeria alone, there is an estimated $900 billion worth of dead capital locked down in lands due to a lack of verification of their ownership, making them non-bankable. Unlocking these lands with highly scalable technology could have a significant impact on the Nigerian economy, potentially increasing the country’s GDP to $1.4 trillion. HouseAfrica aims to build a reliable system of land ownership through its innovative and pioneering features.
Adaverse is a joint venture between EMURGO Africa, and Everest Ventures Group, established in 2021 with the aim of identifying and funding promising fintech solutions in Africa that are building Web3 infrastructures to facilitate digitally-relevant development in emerging economies. One such company building impact is HouseAfrica, which offers a unique solution to address property ownership challenges in Africa.
HouseAfrica is a proptech company that leverages digital solutions to tackle real estate challenges in Africa. The flagship product, Sytemap, is an ecosystem platform that utilises blockchain and satellite maps to create more trust and transparency in land transactions.
Sytemap offers a complete estate layout, highlighting the location and status of available plots. This platform streamlines land acquisition and processing for buyers, lawyers, real estate companies, and agents. It also empowers digital realtors to safeguard their reputation, while providing real estate developers with a competitive edge that results in a 50% reduction in the stressful sales process.
In 2019 Nnamdi Uba and Ndifreke Ikpoku launched HouseAfrica as an effort to use technology to change the negative narrative surrounding real estate investment in Africa.
The company has yielded significant results, with over 100 real estate companies issuing more than 5,000 titles to buyers, and over 500 realtors active on the Sytemap website. Popular real estate companies such as Arnold & Associates, Leadway, Uvest, SmartCity, SilverPacific, SandTrust, and Bamboo have leveraged Sytemap’s ease and fast processing automation.
CEO and Co-Founder Nnamdi Uba on the use of blockchain, commented, “Many real estate markets in Africa are riddled with middleman complexities, extortion, duplicate land titles, lack of trust, ownership verification, and privacy. We are leveraging Web3 and blockchain to provide immutability of data and eliminate duplicity of ownership. Through our Sytemap platform, we’re able to record landowners’ data and proof of land allocation as NFTs, each with a unique identifier, making it impossible to tamper with.”
HouseAfrica plans to use the recently raised funds towards enhancing its blockchain infrastructure, with a goal to fully migrate onto the Cardano platform by the end of the fourth quarter. With a focus on asset tokenisation and NFT minting, the integration of HouseAfrica’s innovative solutions with Cardano’s scalable and interoperable blockchain technology is expected to result in a secure and efficient property registry system that can be easily accessed by anyone with an internet connection. This strategic move highlights the company’s commitment to leveraging cutting-edge technology to revolutionise the real estate industry in Africa and provide transparent and trustworthy land transactions.
“This is one of the key aspects Adaverse will focus on, providing technical expertise and advisory services that will help us navigate the resources within the Cardano ecosystem. We look forward to partnering with other Cardano innovators and dApps and to contributing to the growth and development of the Cardano blockchain as we strive to build a thriving Web3 economy in Africa,” said Nnamdi Uba, HouseAfrica CEO and Co-Founder.
Shogo Ishida, Co-CEO of EMURGO Middle East and Africa commented, “Trust and transparency are the pillars of a thriving economy, and HouseAfrica is at the forefront of using blockchain technology to enhance both of these critical elements in Africa’s real estate sector. The integration of Cardano into their innovative solution is poised to take a significant leap forward, and we are thrilled to be a part of this journey to scale their initiative with its tremendous potential.”