Oil companies and the bank ing sector are
established sources of demand for off ice space
of investors to the continent, although the appeal of
African countries to investors will vary. As Africa’s
Peter Welborn, head of Africa at Knight Frank
comments: “Property investors and developers
looking for emerging market opportunities are
increasing external investment in Africa, particularly
as the growth markets of the last decade such as
Asia-Pacific and Central and Eastern Europe mature
and the level of returns they offer begins to diminish.
Many African countries remain challenging places
in which to do business, but for those able to steer
their way through African property markets, there is
the promise of high returns and significant growth
Africa is not a single entity; it is a collection of
diverse countries and economies, some of which
remain amongst the poorest in the world. Even
within the wealthier countries, there are huge income
disparities. Nonetheless, there is a growing optimism
that, in the words of the World Bank, “Africa could be
in Africa, but it is also noteworthy that African
economies are diversifying and non-traditional
sectors are emerging. The grow th of mobile
technolog y in Africa has been a particularly
prominent phenomenon over the last decade.
Africa’s technology boom is generating new sources
of office market demand and the continent is now
home to a number of growing technology clusters,
such as “Silicon Savannah” in Nairobi and “Silicon
Lagoon” in Lagos.
potential. Knight Frank continues to help investors
navigate the rapids in over 40 of the continent’s most
challenging environments.”
largest and most mature economy, South Africa
should remain attractive as an entry point into the
continent, but its economic growth forecasts are less
compelling than those of other countries. While
they are small markets, low-risk, mid-income
countries like Botswana, Namibia and Mauritius
will also continue to appeal as relatively safe places
in which to do business. It is, however, the large and
rapidly emerging economies of sub-Saharan Africa
and, in particular, fast-growing cities such as Lagos,
Luanda and Nairobi that are likely to be increasingly
the hotspots for investors. Cities in poorer, less
populous, countries, like the Central African
Republic, may get left behind in the rush to invest in
Africa’s more attractive economies.
on the brink of an economic take-off much like China
was 30 years ago”.
The long-term growth outlook for Africa appears
bright. With a large and growing, young and
increasingly wealthy population, Africa has a
demographic advantage that few other parts of the
world will be able to match over the coming decades.
The rise of non-traditional economic sectors, such
as the telecoms industry, and the growth of service
industries supporting the expanding middle class,
should help African economies to diversify and
become less dependent on commodities, aiding their
long-term development.
Alistair Elliott, chairman of Knight Frank LLP
comments on the newly announced alliance between
global property group Knight Frank and South
African-based Galetti, “The African continent is a
key part of our global expansion. Teaming up with
Galetti gives us a quantum shift to our plan at a
time when Africa is at last being taken much more
seriously for both inward and outward investment.
I have no doubt that with an infrastructure of 19
offices and over 500 people this puts Knight Frank
in a unique position to help occupiers, investors and
developers throughout the continent.”
Africa’s economic growth and emerging consumer
markets should continue to attract rising numbers
Galetti Knight Frank
www.reimag.co.za
RESOURCES
Commercial Handbook 2013
57