The Sub-Saharan Africa market may seem daunting and complex for the first – time investor or developer. Added to this is the era of prolific fake news, misperceptions and conflicting reports. So how does an investor or developer interested in pursuing investments in this market, make an informed and strategically sound decision?
Broll Property Intel’s latest research report Sub-Saharan Africa Market Snippet Q3:2019, contains a brief overview of information that assists the investor and developer to better understand the property market conditions in various African countries. Full in-depth country reports are available at a fee in order to assist investors and developers make good business decisions, based on real intelligence.
Sub-Saharan Africa is made up of 46 of Africa’s 54 countries. According to the latest IMF research, “The economic recovery in sub-Saharan Africa continues, but there is duality in growth performance and prospects within the region. Aggregate growth is set to pick up from 3 percent in 2018 to 3.5 percent in 2019 and will stabilize at slightly below 4 percent over the medium term—or about 5 percent, excluding the two major economies, Nigeria and South Africa.”
Broll’s Sub-Saharan Africa Market Snippet Q3:2019 report provides perspective on twelve of these countries; Botswana, Democratic Republic of Congo, Eswatini (ex-Swaziland), Ghana, Kenya, Mauritius, Mozambique, Namibia, Nigeria, South Africa, Uganda and Zambia in the areas of:
- Country facts
- Economic indicators
- Retail market
- Office market
- Industrial market
Investors get the big picture
By extracting data such as estimated GDP growth rates for 2019, alongside ease of doing business rankings, as well as office rentals and yields, there emerges a comparative picture tailor-made for investors. As an example:
The report is bursting with a wealth of critical data for investors and decision-makers. If a country is considered in the report, i.e. Ghana, the country has a population 30.1 million people, with an urban population of just over 57%. The country has a fair rating on the democracy index, while its ease of doing business scoring 114/190. Ghana has a high interest rate of 16% although unemployment is estimated at 6.82% for 2019.
Additionally, in Ghana, it takes 14 days to start a business and 47 days to register a property. When looking at the various property market segments, gross asking rental rates are currently US$35 – US$50/m²/month for retail space, US$30 – US$38/m²/month for offices and US$4 – US$10 for industrial space. With escalation rates varying from 2% – 5% and yields between 9% – 12%, depending on the sector.