Construction World March 2016

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CONSTRUCTION WORLD MARCH 2016
Lagos, with its 20 million population, plans to develop the multi-billion
dollar Eko Atlantic City, a Dubai-style gated community that will have
skyscrapers, business parks and a marina. This city expects an economic
growth of 7% this year.
Mckinsey & Company estimates that by 2025, 80 cities in sub-Saharan
Africa will have populations of 1 000 000. This accounts for 58% of the
area’s growth. These city dwellers will need roads, hospitals, water, and
sanitation and will increase the consumer buying power – which will in
turn lead to more investment.
This mega-city trend will obviously have a huge socio-economic
impact. By 2030, cities will be home to 85% of the national population in
some countries. This will put a strain on infrastructure – and there will be
a host of political issues.
Wilhelm du Plessis
Editor
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COMMENT
EDITOR
Wilhelm du Plessis
ADVERTISING MANAGER
Erna Oosthuizen
LAYOUT & DESIGN
Lesley Testa
CIRCULATION
Karen Smith
TOTAL CIRCULATION:
(Fourth Quarter ’15)
4 688
PUBLISHER
Karen Grant
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Investors no longer view the continent as a whole but rather city by city
and do their investments accordingly. The major development hotspots for
retail, financial services, technology and the construction sectors are Lagos,
Nairobi, Accra, Kinshasa and Johannesburg.
Sub-Saharan Africa is urbanising faster than any other area in the world.
Urban inhabitants have more money to spend which in turn feeds more
investment. Investors want to spendmoney where success is proven, growth
is strong and will remain sustainably strong.
According to a 2015 report by PriceWaterhouseCoopers, Nairobi is the
most attractive destination for foreign investment. It is followed by Accra
with Lagos and Johannesburg in third place.
Despite its large unemployment rate, flailing credit ratings, falling
currency and the threat of slipping into recession, South Africa has
areas where investment is booming. Sandton, one such area, is exploding
with major building and development.
In Nairobi, which is said to attract the most foreign investment, the
Two Rivers Mall is the largest mall in Africa outside SA with luxury brands
already booking space.
Despite the fact that Africa’s larger
economies have been adversely
affected by especially the collapse in
commodity prices and the cooling
down of the Chinese economy,
there are still some enclaves in
these economies that provide good
investment opportunities.
According to a recent report by PwC, Nairobi in Kenya is the number
one city of opportunity for investors in sub-Saharan Africa.
Keeping you informed
As part of its offering, Construction World now produces an elec-
tronic newsletter, eConstructionWorld every week. This newsletter
reaches a growing audience – currently 3 500.
If you want to get your news to the construction industry
swiftly, please email editorial to me. This is also the ideal vehicle for
advertising. Please contact Erna Oosthuizen, Construction World’s
advertising manager in this regard.
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