The euphoria of the ‘Africa rising’ narrative may have faded after slowed economic growth across the continent over the past few years, but there is still strong opportunity for good returns from direct property investments in key African cities.
Approaching each investment case with a solid understanding of local conditions and dynamics is the foundation for success, along with a long-term view that can only be gleaned by building strong local relationships.
Dr Yuwa Hedrick-Wong, chief economist at the Mastercard Centre for Economic Growth, notes that many of Africa’s cities are evolving so rapidly that they can barely be recognised when compared to just a decade ago. Maputo in Mozambique, Casablanca (Morocco), Lagos (Nigeria), Abidjan (Ivory Coast) and Dar es Salaam (Tanzania) are the large African cities with the greatest potential for growth, he says.
One of the main reasons for this growth is the rapid rate of urbanisation, with urban populations expected to grow from 400 million in 2010 to 1.26 billion in 2050, and the continent’s urbanisation rate likely to reach 50% by 2037. Similarly, the 11 fastest-growing countries on the continent will see their collective middle class…
The full article is reserved for our subscribers!
Read this article by Roberto Ferreira, Managing Principal STANLIB Africa Direct Property Fund as well as a host of other topical management articles written by professionals, consultants and academics in the June/July 2017 edition of BusinessBrief.
Questions or problems?
email@example.com | +27(0) 11 788 0880 |