Real Estate Investor Magazine South Africa November 2013 | Page 66

AFRICA

BY ANGIE REDMOND

Annual Europe 1%
growth in labor
1.5%
U.S
productivity,
2.8%
2000 to 2008 Africa
Economies of
sub-Saharan
Africa ranked
amongst the
lowest in the
World Bank’s 2010
Ease of Doing
Business report

$1.6
$1.4 trillion
trillion
Africa’s consumer
spending in 2020

20

Compounded annual real GDP growth, 2000-2013
Number of African
companies with at
least $3 billion in
revenue last year

2.0%

Latin America

4.0%

Africa

4.9%

40%

8.3%

1900s

22%

2000s 8%

Percentage of world’s reserves in Africa

M

ore and more companies are choosing
to invest in countries in Africa, from
property companies to JSE listed
funds and retail giants. Investment into Africa
has taken off and the pace doesn’t seem set
to slow any time soon, so what is driving this
expansion into Africa?
“While it was a relatively untapped region
over a decade ago, with economies too badly
managed for there to be any real opportunity
for companies with integrity, there has been
a massive shift towards encouraging foreign
investment in Africa and the continent is on the
move. Today many large businesses are seeing
the potential that the continent is currently
yielding and are eager to expand into the region
and take full advantage of the opportunities that
are presenting themselves,” says Adrian Goslett,
CEO of RE/MAX of Southern Africa.
There are a whole host of south African
developers and investors focused on the rest
62

Developed

Emerging Asia

The Race To
Invest In Africa

Ready, set, go

Africa’s collective GDP
in 2008, roughly equal
to Brazil’s or Russia’s

Africa’s
number
of telecom
subscribers
exceeded
450 million
in 2009, up from
52 million in 2003

November 2013 SA Real Estate Investor

of A frica, which
include JHI, Pam
Gold ing, Actis,
OilG
oldC hromiumP latinum
RMB Westport,
Stanlib, Resilient
Property Income
Fund, Standard
Number of cities with
Bank, Atterbury,
population over 1 million
Hyprop and many
up Africa. Last year,
Latin America 63
more. One la rge
South Africa was the
factor that is driving
single largest investor in
Europe
52
t h is e x pa nsion into
foreign direct investment
Africa
52
Africa is the retail sector;
in Africa, outside the country.
North America 48
many retailers are forging
ahead and looking to markets
Retail giant Massmart recently
in A frica to expand and
announced its aim to expand its
diversify and for good reason.
footprint in Kenya, with ambitions in food
Retailers are responding to increased
retail in West and East Africa. It reported
demand from consumers in Africa, and in
that in West Africa the group is trying out
particular expanding operations on the continent
several food stores in different formats. In East
from South Africa, reports Malcolm Horne,
Africa it has held discussions with supermarkets
CEO of Broll Property Group. Horne notes
including Kenyan chain Naivas, but no deal has
South African retail is driving development
materialised yet. In total the group plans to open

10% 40% 84% 88%

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