WHY IT MAKES SENSE TO INVEST IN

Africa

1 – Unparalleled Growth potential

Africa stands as one of the last frontiers for large-scale infrastructure development, offering a unique opportunity for corporates to tap into an underdeveloped market with immense growth potential. The continent is undergoing rapid urbanization, with its cities expanding faster than almost anywhere else in the world. By 2050, over 1.5 billion people are expected to live in African cities. This massive demographic shift is creating an insatiable demand for infrastructure—transportation networks, energy solutions, telecommunications, and more. For companies looking to invest, this means entering a market that is on the cusp of exponential growth.

2 – A young and dynamic consumer base

Africa’s population is not only growing; it is also incredibly young, with a median age of just 19 years. This youthful demographic represents a vibrant consumer base eager for modern infrastructure and services. By investing in Africa’s infrastructure, corporates can establish themselves early in the market, catering to a young and rapidly expanding population that will drive demand for decades to come.

Realities to consider in Africa

  • Equality and Social Inclusion
  • Financial Exclusion
  • Infrastructure
  • Institutions and governance

3 – Untapped resources and new markets

Africa is a treasure trove of natural resources, from minerals and oil to vast agricultural lands. However, many of these resources remain untapped due to inadequate infrastructure. Corporates that invest in roads, ports, and energy systems will not only unlock these resources but also gain access to new markets hungry for growth. With increasing disposable incomes and a burgeoning middle class, Africa is poised to become one of the world’s most dynamic consumer markets.

4 – Strategic Global Positioning

Africa’s strategic location along key global trade routes makes it a vital player in international commerce. Investing in African infrastructure, particularly in transportation and logistics, can streamline global trade flows and position companies at the heart of emerging markets. Moreover, infrastructure investments will bolster regional integration efforts, such as the African Continental Free Trade Area (AfCFTA), facilitating easier and more efficient operations across multiple African countries.

To understand why this is important we offer the following

Key Issues to Discuss

The age-old adage “location, location, location” remains the key determinant for profitability in real estate investing, with factors such as proximity to amenities, green spaces, scenic views, and neighbourhood status playing a prominent role in residential property valuations. Similarly, commercial property valuations are influenced by factors such as proximity to markets, warehouses, transport hubs, freeways, and tax-exempt areas.

However, rural areas in Africa often lack well-established markets, warehouses, and transport hubs. That’s where our developments come in – we provide a one-stop-shop for markets, warehouses, transport hubs, commercial properties, and residential areas, bringing much-needed infrastructure to previously underserved rural areas.

Investing in real estate within urban settings often involves high-value investments and low liquidity, making it challenging to achieve clarity of purpose, leading to unexpected financial distress. However, investing in the rural areas of Africa presents an opportunity for high liquidity and minimal investment value due to lower development costs compared to urban settings.

  1. Expected increase in intrinsic value due to long-term price appreciation.
  2. Expected cash flow from rental income (inflation favours landlords for rental income) including government agencies
  3. Growth in property valuations and rental incomes due to emerging areas. Rural areas are the current focus of government agencies in South Africa because they too recognize their challenges within the urban setting

Rural Africa represents an immense opportunity. A growing number of South Africans are choosing to construct their lavish residences in the countryside, creating a familial haven far removed from the bustle of urban areas.

INVEST INVEST INVEST

opportunities

Africa’s underdeveloped infrastructure presents a lucrative opportunity for high returns on investment. As one of the least developed regions in terms of infrastructure, the continent offers a “greenfield” investment landscape where the potential for growth and profitability is substantial. Whether in transportation, energy, or digital infrastructure, companies that invest now will reap the rewards as Africa’s economies continue to grow and develop.

Investing in Africa’s infrastructure is not just about profits; it’s also about making a meaningful impact. Corporates have the opportunity to contribute to Africa’s sustainable development by building infrastructure that promotes economic growth, reduces poverty, and enhances living standards. These investments align with global sustainability goals and corporate social responsibility (CSR) initiatives, enhancing the company’s reputation and brand value.

We have grouped the business opportunities we are currently pursuing under the fundamentals identified:
FINANCIAL EXCLUSION:

– Banking Facilities (Branch and ATM’s)  –  Investment Schemes and Policies  –  Life Assurance  –  Agricultural activities 
– Accommodation and Tourism  –  Entertainment

INFRASTRUCTURE:

– Water Services  –  Sewerage Services  –  Connectivity (internet)

Investing in Africa allows corporates to diversify their portfolios, reducing reliance on more saturated markets. Africa’s infrastructure sector is still in its infancy, providing early investors with the chance to secure a first-mover advantage. Companies that establish themselves now will set the standards, build crucial relationships, and capture market share ahead of their competitors.

Africa’s underdeveloped infrastructure also presents a unique opportunity for innovation. With fewer legacy systems in place, there is more room to implement cutting-edge technologies—whether it’s in renewable energy, smart cities, or digital infrastructure. Corporates can pioneer the next generation of infrastructure, positioning themselves as leaders in innovation and technology.

Africa is not just a short-term opportunity; it’s a long-term strategic growth market. As the continent continues to develop, the need for infrastructure will only increase, offering sustained demand for decades. By investing now, corporates can build a strong, enduring presence in one of the world’s most promising regions.

 Investing in Africa’s infrastructure is more than just a smart business move; it’s a strategic decision that offers unparalleled growth opportunities, high returns, and the chance to make a lasting impact. For corporates looking to expand into new markets and secure their future, Africa represents the ultimate investment frontier. The time to act is now.