Sub-Saharan Africa Urged to Invest in Infrastructure to Unlock Real Estate Market Potential
Infrastructure development expert calls for African countries to invest in infrastructure to tap into the global real estate market.
LONDON, UNITED KINGDOM — Dr. Tinashe Manzungu, a Sub-Saharan infrastructure development expert, has called on African countries to invest in their infrastructure to unlock the potential of the global real estate market, writes Staff Writer.
Speaking at the European School of Economics in London, he highlighted Africa's rapid urbanization as a key driver for real estate investment.
"Africa is emerging as a potential hotspot for real estate investment due to its rapid urbanization, rising middle-class population, increased foreign direct investment, and improving business environment. Statistics show promising opportunities and strategies that can accelerate Africa's growth in the real estate sector," said Manzungu.
To tap into the potential of the real estate market, Manzungu stressed the importance of investing in infrastructure.
He highlighted the need to develop quality transportation networks, power supply, and other essential amenities to attract more investors and drive economic growth.
Manzungu also emphasized the importance of partnerships between the public and private sectors in real estate development.
Governments should provide policies, land, and infrastructure support, while private investors bring capital and expertise.
In addition to infrastructure investment, Manzungu called on African governments to establish affordable housing initiatives.
With massive urban migration in many African countries, there is a growing demand for housing and infrastructure.
"Promoting affordable housing projects can address the housing deficit in African cities and provide opportunities for real estate developers. Governments, with the support of the private sector, should provide incentives and remove regulatory hurdles to encourage affordable housing development," Manzungu explained.
Technology adoption was also highlighted as essential for the real estate sector. Manzungu urged the continent to utilise digital platforms, smart cities, and property technology (proptech) to enhance efficiency and transparency.
Furthermore, Manzungu called on European countries to seize the opportunity and invest in Africa's real estate sector.
The continent's rising middle-class population, with increased disposable incomes and a desire for improved living standards, presents a significant consumer base for real estate developers.
"Africa has been attracting increasing foreign direct investment (FDI), including in the real estate sector. International investors are recognising the untapped potential and attractive returns offered by African real estate markets," stated Manzungu.
According to Manzungu, FDI flows into Africa's real estate sector increased by 14% in 2019, reaching an estimated US$3.3 billion. South Africa, Nigeria, and Kenya have been the top destinations for real estate FDI in Africa.
Investing in infrastructure and affordable housing initiatives, adopting technology solutions, and attracting foreign investment will be crucial for Africa to unlock the potential of its real estate market.