The Prospects for Commercial Property Investments in Africa

Prospects for commercial property investments in Africa can vary widely depending on the specific country and region but there are real opportunities for high-yielding commercial property investments in Africa. Savvy investors that partner with experienced developers who specialize in providing African real estate developments can unlock lucrative investment opportunities.

The Business Case for Commercial Property Investments in Africa

African nations boast some of the world’s fastest-growing economies and are assuming an increasingly influential role in the global economic landscape. Several notable areas of progress on the continent are emerging, fuelled by a youthful and rapidly growing population and coupled with projections of rising household incomes and bourgeoning consumerism. Advancements, especially regarding reductions in infrastructure shortfalls, position Africa for extensive industrialization and ongoing growth in digital and mobile access.

Ongoing business environment reforms across the continent have significantly altered the investment landscape compared to previous decades. Notably, the U.S. government has recently taken unprecedented measures to provide investor support and encourage investments in real estate and other investment categories in Africa.

Abundant opportunities exist, but engaging in business in Africa is still linked to actual, and perceived, risks. Institutional and infrastructure barriers, imbalances between risk and reward, and elevated transaction costs pose challenges for investors seeking viable investment opportunities.

Identifying the Opportunities

Rising household income in Africa is generating an increasing demand for financial services, including increased demand for banking, insurance, mobile payment, and credit provision services. The convergence of demographic shifts, the surge in digital and mobile accessibility, and the potential for rapid mass industrialization are poised to provide high-return commercial property investments across various high-potential sectors. The field of financial technology, for example, promises to provide substantial opportunities for investment. Africa boasts over 180 million active mobile money accounts, representing over 50% of the global total, with a growth rate higher than that of all other regions combined.

Healthcare is another sector that promises to provide attractive commercial property investments. Africa is set to witness an increased demand for healthcare infrastructure, services, and personal healthcare products. Not only is there a growing need for traditional brick-and-mortar healthcare facilities, but there is the potential for telemedicine and digital healthcare on the back of expanding internet connectivity and mobile usage across the continent.

Titled “Digital Africa: Technological Transformation for Jobs,” a new report underscores the imperative for African nations to embrace digital technologies, given that Africa’s portion of the global workforce is expected to surpass all others by 2100. With over 22 million Africans entering the job market annually, fostering the adoption of digital tools becomes crucial for driving employment growth, according to the report released today.

The proliferation of internet access and the growing adoption of technology in Africa have triggered a digital revolution. Sub-Saharan Africa alone had over 456 million unique mobile subscribers by the end of 2018. This accounts for about 44% of the region’s population—an increase from 20% in 2015.

Africa’s rapid urbanization, coupled with rapid population growth, is set to lead to the emergence of 100 cities with more than one million inhabitants by 2025. The demographic shift will necessitate substantial demand for commercial property investments in telecommunications, energy, water, and sanitation, as well as transportation.

Engage with a Leading African Real Estate Developer

GREA, the development arm of Grit Real Estate Investment Group, is the largest income-focused real estate group across Africa. We specialize in creating customized commercial property investments in selected African countries. Our team provides attractive, high-yield, real estate investments in Africa. We are an award-winning developer with a portfolio of premium commercial property developments. Our track record highlights our expertise in African real estate. Exploit lucrative commercial property investments in Africa by contacting us today.

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