Construction World March 2015

CONSTRUCTION WORLD

MARCH

2015

PROPERTY

RICS is a global professional body

that promotes and enforces the

highest qualifications and stand-

ards in the areas of land, real

estate, construction and infrastructure.

As a public benefit organisation, it oper-

ates in all the world’s major financial

hubs in delivering international standards

and policy influence. As a leader in these

sectors, RICS Africa 2015 Summit will engage

role players from across Africa’s built envi-

ronment to launch a discussion on vital

aspects of Africa’s economic growth and

future success.

Commenting on the forthcoming confer-

ence, TC Chetty, RICS country manager for

South Africa, says Africa’s built environment

is undergoing unprecedented change, with

rapid urbanisation and populations in key

cities projected to grow some 60 percent

above 2010 levels. “Developments such as

these bring increased opportunities not only

for the commercial and residential property

sectors, but also for professionals working

throughout Africa. Our Africa Summit will

provide a platform for debate and discus-

sion on important aspects of the continent’s

property growth.”

Forecasts by the International Mone-

tary Fund reflect that GDP (gross domestic

product) growth rates for some African coun-

tries are expected to exceed those of their

developed counterparts. Indications are

that Ethiopia, Ghana, Mozambique, Nigeria,

Tanzania and Zambia anticipate growth

rates of between five and seven percent.

According to Ernst & Young’s report

‘Africa by numbers 2013-14’, African coun-

tries have experienced consistent and robust

growth for over a decade, with the size of the

continent’s overall economy more than

trebling since 2002; and the size of the

sub-Saharan economy growing well over

three-and-half-times.

This is despite the fact that half of the

past decade has been marked by a deeply

troubled economy. The report reiterates

the exciting opportunities for investment

and growth in Africa, with Ernst & Young’s

2013 ‘Africa attractiveness’ report noting

that foreign direct investment projects into

sub-Saharan grew at a compound rate of

22,3% between 2007 and 2012.

Says Chetty: “Sub-Saharan Africa pre-

sents a huge area of opportunity where real

estate and infrastructure investment needs

to grow phenomenally to meet massive

population needs. In many of the continent’s

capital cities, improved levels of FDI and

a growing middle class has led to notably

increased demand for residential, business

and retail property.

“Growth in property markets across

Africa will not just fuel a need for massive

infrastructure investment but will also see

a need for more professionals, skills and

capacity to manage this growth. Naturally,

while this presents a host of opportunities,

it also presents a number of challenges

for various markets across the continent –

particularly in the property sector.

“While RICS has had a presence in

South Africa for some years, we are now in

the process of expanding our operations,

for professionals

OPPORTUNITIES

THROUGHOUT AFRICA

Bringing together leading

property practitioners, investors

and academic experts from around the world and across the

continent, the Royal Institution of Chartered Surveyors (RICS)

has selected Africa, and more specifically South Africa, as the

venue to hold its 2015 Summit. To be held in Johannesburg on

25 March 2015 this is only the fourth time RICS has held the

global summit outside the UK – after China, India and Brazil.

initially focusing on three key regional

markets in sub-Saharan Africa, namely South

Africa, Kenya and Ghana. The rationale is

that South Africa is a strategic gateway for

RICS’ growing its activities in Africa; Kenya

is rapidly becoming a strategic location for

organisations wanting to establish a regional

base in East Africa, while Ghana is our choice

for a regional hub in West Africa.

“Due to the diversity of Africa’s markets,

needs and challenges, ours is a strategic

approach of co-operation and building

partnerships with national bodies and

stakeholders. As a public benefit, profes-

sional body with global reach we are ideally

placed to bring together stakeholders from

around the world to share experiences and

expertise, and to collaborate and learn.

The Summit will also highlight the role

development professionals can play in key

African markets as the built environment

evolves and expands.”

Concludes Chetty: “There is no doubt

that Africa would benefit enormously from

a larger pool of built environment profes-

sionals. For example, if across Africa, meas-

urement standards can be implemented in

conjunction with ethical standards – and

effectively and independently regulated, we

believe we can help create market condi-

tions in which investors, clients and the

public as a whole have high confidence, and

in which growth is sustainable.

“Our experience is that genuine collab-

oration between professional bodies from

across all areas of the built environment

and between national and international enti-

ties promises to bring significant economic

dividends, which ultimately benefit society

as a whole.”

TC Chetty, RICS country

manager for South Africa.