What will be the tallest building in Africa is currently under construction in Nairobi, Kenya. The project is slated for completion by December 2019 and is made up of twin towers. The taller tower is going to be 300 meters tall and the project will cost about $200 million. According to CNN, Dubai based investors (Hass Petroleum and White Lotus group) are funding the project. Construction officially started on the 23rd of May when the current President , Uhuru Kenyatta laid the foundation stone.
The building contract has been awarded to the China State Construction Engineering Cooperation (CSCEC). This company was also responsible for building the African Union Headquarters in Ethiopia. Chinese companies seem to be taking over most of the major construction projects going on in Africa.
The complex will contain a 255 room Hilton hotel, elite residences, business facilities and a helipad on the roof. Some Kenyan business men believe that this project will help in attracting global corporations to Kenya. According to the economist, the Kenyan economy unlike most African economies expanded by 6% in 2016. This is because Kenya was unaffected by the drop in global oil prices, since She does not depend on oil and mining like most other African countries.
Investing in property in Kenya has been very rewarding since the propert value is consistently appreciating in value. However, prime residential rents fell by 6% in 2016. With the coming election in Kenya, economic growth is likely to slow down due to the uncertainty. People are wondering who will be able to afford the elite residences in the towers. The investors state that the expatriates working for NGOs in Nairobi are able to afford this lifestyle.
The more I read on new projects springing up in Africa, I realise that most of the big and very important projects are being “financed”by foreign investors, built by the Chinese and the profits are enjoyed by these foreigners. Some people will argue that Africa is not developed to take on these projects without foreign assistance but I think these investors see Africa as a goldmine “up for grabs”.
Please let me know what you think by leaving a comment.