There has been a boom in the real estate market in Africa in the last 10 years despite the fact that 2016 was a tough year for many African economies (e.g. Nigerian economy). This is due to the rapid increase in population and urbanisation in sub-Saharan Africa. There has been an economic growth in quite a few Africa economies so far and this has led to technological and architectural advancements.
The growth in tourism in Africa is attracting more foreign investors to Africa. Foreign direct investment is projected to reach $45 billion in 2020. Foreign investments often come with a rise in the number of expatriates, this often leads to an increase in rented property. In 2016 there was an increase in the rental property in Lagos, however, according to the International Real Estate Federation (FIABCI) Africa, commercial rent is likely to drop due to a struggle with their personal finances as a result of the downturn of the economy in 2016. Despite the state of the Nigerian economy, Lagos is still the most expensive city to live in sub-Saharan Africa.
Property value across Africa will only appreciate in the upcoming future so it is best that both Africans living in Africa and Africans in diaspora take advantage of this and invest in their continent. Foreign investors are known to put the interests of their companies and home countries before the interests of the African people. Africans investing in Africa is more likely to ensure the all round growth of the continent in the long run.
Most people do not know how lucrative the agricultural sector in Africa can be. According to the World Bank, it is estimated be worth $1 trillion dollars in 2030. Africa, as we all know is the most fertile continent in the world. Africa has the potential to feed all its inhabitants and still be the world’s largest exporter of food.
Africa has 60 percent of the worlds’ uncultivated Arable land and fertile soils. Let us not forget the sunshine all year round and the absence of extremely cold conditions in most parts of Africa. Currently, Africa is importing over 65% of the wheat consumed and over $10 billions on imported grains.
Aliko Dangote Africa’s richest man according to Forbes list recently invested $1 billion into rice production in Africa. This is looking like a very lucrative investment for Dangote. A lot of young African Entrepreneurs are also jumping on the bandwagon. Mechanised farming is on the rise in Africa and vast improvements will be seen in the near future.
For almost 10 years, investors from the USA, Europe, the Arab world and Asia buy millions of hectares of land in Africa for Agricultural purposes. This happens while a number of Africans go hungry on their own continent. Contrary to popular belief, land is cheap in Africa compared to the rest of the World (especially the developed world).
Africans taking control of agriculture on the continent and ensuring the proper distribution of the food is perhaps a step to solving the starvation problems the continent is facing.
Shopping malls are starting to spring up all over Africa. The trend started in South Africa and has spread throughout sub-Saharan Africa, though South Africa still has the largest shopping mall in Africa. South Africa boasts of 23 million square meters of shopping centre retail space while the rest of sub-Saharan Africa has less than 5 million square meters. Most African families on the continent still do not have a great deal of spending power, however as African economies grow stronger and the average African has more spending power, there is bound to be an increase in the demand of shopping malls.
Foreign companies still own most of the malls even though local companies develop them. This is why most of the malls have foreign names and the majority of the profit made ends up leaving the African continent. Though the retail industry requires huge investments up front, the business venture is definitely worth it in Africa.
Please note this is only the first part of the Incredible Business Opportunities in Africa Series. There is still more to come.