Commercial Office Development in Africa
Historically, Sub-Saharan Africa has not been the best environment for commercial office development. It suffered from high transport costs, small markets, low agricultural productivity, arbitrary geographical boundaries, and poor technology transfer from international markets. The traditional view that countries on the African continent are at best an unacceptably high-risk investment opportunity has been replaced with a more positive outlook as political stability, rapidly evolving consumerism and the youngest population in the world are factors that improve the prospects for Africa considerably.
Africa’s infrastructure deficit may be viewed as a constraint on its growth, as it needs a more stable and secure energy supply, reliable communications, better sanitation, more efficient transport, and affordable housing. But it also offers investors an opportunity to leapfrog existing technologies to new, more efficient solutions.
Commercial Office Development Potential
Two or more decades of slow movement away from poor economic policy, political upheaval and conflict have helped to make Africa a continent with huge potential and attractive investment opportunities. The formulation of the Millennium Development Goals for Africa in 2000 can be seen as the start of a turnaround for Africa. Introduced in September 2000 as part of the United Nations Millennium Declaration, these goals were officially implemented in 2001, and aim to:
- Eradicate hunger and poverty.
- Achieve universal education.
- Advocate for gender equality and women’s empowerment.
- Lower child mortality.
- Enhance maternal health.
- Combat HIV/AIDS, malaria and other diseases.
- Ensure environmental stability.
- Development of a global partnership for development.
Infrastructure and Development
Infrastructure development has been identified as the critical driver of progress across the African continent, and a key enabler of sustainable economic growth and efficient development. Good infrastructure contributes significantly to human social development and poverty reduction and ultimately underpinned any hope of achieving the Millennium Development Goals. Investment in infrastructure is believed to account for over fifty per cent of the recent improvement in African economic growth and has the potential to stimulate even more.
The Impact of the Covid Pandemic
Africa had relatively low absolute infection rates and the number of Covid-19 infections and fatalities was low when compared to other world regions. The global pandemic has had several negative economic effects, including a sharp decrease in consumption, investment, trade, and travel coupled with job and supply‐chain disruptions, and the closure of many businesses. The pandemic and the actions governments have taken to contain the pandemic have been costly to African economies, resulting in deep economic contractions.
Real Estate Development is Key
Despite the challenges being faced, African cities are evolving. Investment in large-scale real estate developments, including green commercial offices, data centres and planned smart cities, is giving African cities a much-needed facelift.
These projects provide significant economic and social value by providing job opportunities and attracting further investment.
In this context, GREA was recently recognised at the Africa Property Investment (API) Summit with its Adumuah Place project, located in Accra, Ghana, winning best commercial office development and its Rosslyn Grove project in Nairobi, Kenya, winning best high-end residential development. The API awards are a peer-to-peer recognition of excellence in real estate development and are judged by an independent panel.
GREA Commercial Office Development Specialists in Africa
How does one exploit the real estate investment potential that Africa provides while mitigating the risks? GREA is a private real estate development company with a large portfolio of successful turnkey accommodation projects completed for multinational companies expanding their operations into African cities. They provide direct real estate exposure to qualified investors that provide high-yielding investments and deliver rental income streams with strong growth potential. Their track record proves that GREA should be your investment partner of choice in Africa. Interested in exploiting the investment opportunities Africa offers? Contact GREA today.