The best African Cities on the international radar are:
- Mature: Cape Town, Durban, Johannesburg
- Emerging: Accra, Cairo, Casablanca, Lagos, Nairobi
- Early Adopter: Addis Ababa, Luanda
Looking at the bigger picture, these are the 12 factors that we believe will underpin growth in Africa’s commercial real estate industry: 1. Sustained Economic Growth The past decade has been a major turning point for the African economy. Economic growth in sub-Saharan Africa has matched or exceeded 5% for nine out of the last 10 years, and is expected to continue to exceed 5% per year over the next five years as the internal market expands. The balance of economic activity within the continent is shifting southwards into sub-Saharan Africa, home to some of the world’s fastest-growing economies, such as Ethiopia, Ghana, Nigeria and Angola. In terms of economic performance, sub-Saharan Africa holds up well compared to other emerging markets: eight out of the world’s top dozen fastest-growing countries over the next five years are expected to be in Africa. 2. Favourable Demographics Africa is becoming a market of global scale – its population, currently in excess of 1 billion, is expected to double over the next 25 years, the fastest growth rate of any continent. Its working-age population is growing especially vigorously, with 70% of the total population aged under 30, delivering a potentially huge demographic boost. By 2040, Africa’s working-age population will be larger than either China or India
. 3. Rapid Urbanization The real estate sector will play a major role in shaping Africa’s urban future as city infrastructures strain under the pressures of “flash urbanization”. e. ITs continent is also home to four of the world’s megacities – Cairo, Lagos, Kinshasa and Johannesburg – each providing huge population catchments.
Many African cities are showing remarkable economic dynamism. Accra and Addis Ababa are booming, and are among the world’s fastest-growing city economies. Luanda, Maputo, Lusaka, Lagos and Abuja are also expanding rapidly, while Kigali (in Rwanda) has ambitious plans to transform itself into “the centre of urban excellence in Africa”.