Estate Living Magazine #liveyourbestlife - Issue 46 December 2019 | Page 12

P R O P E R T Y
&
I N V E S T M E N T
HOW DOES
JOHANNESBURG
MEASURE UP AS A
MEGACITY?
Joburg is fast becoming a megacity, but how does it
compare with existing African megacities for return on
investment?
Cairo, Kinshasa and Lagos all carry the status of megacity – cities
with a population of at least 10 million inhabitants. Fast on their heels
are Dar es Salaam, Luanda and Johannesburg, which are predicted
to attain the status of megacity by 2030, according to the United
Nations.
As cities like Johannesburg grow into megacities, they become
more attractive to investors. A single district in a megacity can reach
a market the size of an entire country like Botswana. Because people
in megacities are concentrated, companies can benefit from lower
fixed costs and easier distribution for their businesses.
Dr Walter Musakwa, University of Johannesburg, explains that
Johannesburg is already seeing growing investment with an
increasing number of multinationals settling in the city. It’s a
cosmopolitan city with the biggest airport in Africa, as well as
excellent infrastructure, including super-fast fibre connectivity.
Waterfall Estate
‘When it comes to investment opportunities, however, Johannesburg
presents certain challenges, especially when one compares it to
cities like Kigali in Rwanda. South African laws are not necessarily
business-friendly, and tend to be quite stringent,’ says Dr Musakwa.