Global Capital Fuels African Property Markets
By Abdi Ali
Published July 25, 2016
Despite world economic slowdown, more than US$1.2 billion has been invested in real estate in Africa over the past 12 months.
Experts not only say real estate is an important contributor to GDP in Africa but that property developers and private equity funds continue to pour investment into the continent on a continuing trend.
Kfir Rusin, General Manager of Africa Property Investment (API) Summit, a two-day event that focuses on current themes, trends and challenges related to property investments and developments in Africa, says the African property is poised for growth despite economic uncertainties.
“The underlying investment theme across sub-Saharan Africa over the next decade will be driven by substantial allocations of equity into real estate with successful local partners,” says Peter Welborn, chairman of Knight Franks’ Africa business. “Both the west African retail sector as well as the southern and east Africa logistics sectors will be high on the hit list of international capital.”
It is therefore with little surprise that API Summit, the leading African focused real estate forum is, for the seventh time, set to bring together influential property players from around the continent in South Africa. The API Summit, that is scheduled for August 18-19, 2016 in Sandton Convention Centre, is expected to offer developers and investors access to new development strategies, a chance to showcase projects and to meet with new sources of capital across sub-Saharan Africa.
While the effects of the currency and liquidity crises have been sharply felt across the continent, most notably in the largely oil-driven commodity exporting countries, organisers of API say they are optimistic about the viability of Africa’s real estate sector, particularly in East Africa where a shift towards economic diversification is providing more economic stability than others.
Key sessions at the API Summit are expected to tackle subjects such as The Role of global capital in Africa , Africa’s Retail reality check, Logistics & Industrial sector as well as focused discussions on countries such as Rwanda, Ivory Coast and Tanzania.