In 2015, PwC released its report on real estate on the African continent, Real Estate – Building the Future of Africa, providing insight into where it sees the real estate market of the continent in 2020. In their report, PwC identifies eight drivers for growth on the African continent; we have summarised them for you in this two-part post. Enjoy!
Africa’s young population will push demand for real estate – and different types of real estate with that. Across Africa, there will be continued urbanisation, an expansion of current cities, and the rise of new cities. With a rising middle class, a more stable economic environment is being cultivated.
Did you know? The World Bank now classifies 27 of the 54 countries in Africa as either mid- or high-income countries – 12 more than in 2000! Zambia and Ghana were upgraded to mid-income status in 2011.
Industrialisation will continue across Africa and will be accompanied by rapid growth in the retail sector. If history is to be believed, industrialisation leads to economic growth (think Britain in the nineteenth century and China in the twentieth century).
But how do we accelerate industrialisation on our continent? Rob Davies, South African Trade and Industry Minister, believes that intra-Africa trading is the key: “Africa is poised to industrialise; the industrialisation requires regional integration and to address the infrastructure constraints.”
PwC states that the export of natural resources and agriculture will remain key sources of economic growth. Africa holds a third of global mineral reserves and a tenth of global oil reserves — it also produces the world’s diamonds! The continent’s abundance of natural resources will continue to draw foreign investors.
Infrastructure shortages will create opportunities for investment — yes, you read that right. A PwC analysis of transport and logistics in Africa found Ghana, Kenya,
Mozambique, Angola and Nigeria have the highest prospects for growth.
Mobus Properties Ltd. is a privately-held Ghanaian property investment, development and management company focusing on commercial and residential property development. The company has property portfolios in Ghana and Nigeria.
Contact Mobus Property Development today for more information on the range of properties in our portfolio.