African countries with growing housing and construction needs are integral to global economic development. African solutions to African problems” is a phrase heard in all matters, from humanitarian and political crises that affect the continent to infrastructure and economic challenges.
Housing for all is a need that is becoming more urgent as urbanisation accelerates throughout the continent. Old ways of building are being reconsidered by construction engineers who apply new technologies, and in some cases, revisit the value of traditional materials. The goal is affordable, decent housing that appeals to the African lifestyle.
Are you searching for reasons to invest in the housing and construction sector in the African continent as the world gathers for AIHS 2024? Consider the reasons below, including flexible policies, building technologies, availability of raw materials, innovative thinking to lower costs of cement, and unsaturated markets in Africa.
1. High Investment Rate
According to the United Nations, Africa is a prosperous continent. And now is the best time to invest here. The United Nations report disclosed that the region recorded 11.4% growth in foreign investment returns between 2006 and 2011. But available data show that Africa’s foreign direct investment (FDI) flows dropped 16% in 2020 due to the effects of the pandemic.
According to a World Bank report, Africa is rapidly urbanising and will lead the world’s urban growth in the coming decades. Africa’s urban population is projected to reach 1.2 billion, with an urbanisation rate of 58 percent (UN‐HABITAT 2014). With this rate of growth, Africa will overtake Asia as the world’s most rapidly urbanising region by 2025 (UN 2014).
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Globally, cities are major drivers of economic growth, and the quality and location of housing has long term consequences for inclusive growth. As urbanisation continues, investment in formal housing must keep up with increasing housing needs.
With many African countries recovering from the global pandemic, the continent is ripe for investments. This is why you should take advantage of the investment opportunities the Africa International Housing Show will be presenting this year as stakeholders from all over the world gather for the 18th edition from 22nd to 27th July, 2024 at the National Stadium Abuja Nigeria.
2. Availability of Raw Materials
A report by the United Nations Environment Programme shows that Africa is rich in natural resources and raw materials. Africa has also been described as the fastest-growing continent for foreign direct investment, ideal for investors. With raw materials like uranium, diamonds, petroleum, iron, and gold in Africa, investors can benefit from it.
Ensuring the affordability of cement is a good starting point for African builders. More cement makers are gradually starting operations for the domestic market. Local materials naturally lend themselves to the living requirements of the African environments from which they come.
Hence, imaginative thinking can lower the cost of materials and this is a part of what the Africa International Housing Show seeks to achieve at the event this year with the engagement of private sector and government policy makers and investors from different parts of the world.
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3. Flexible Government Policies
In light of the steady inflow of foreign direct investment into the continent, African governments are making flexible policies to encourage more inflows.
In this regard, the housing finance conference and real estate ceos forum during the Africa International Housing Show advocates for action in the policy including construction technology, housing finance, land and infrastructure, building materials, labour management, housing allocation, monitoring and review.
4. Poor Infrastructure in Africa presents opportunities for investors
According to the Brookings Institute, Africa’s poor infrastructure has adverse effects on economic stability and growth. Investors can benefit from the region with inadequate power supply, poor roads, and undependable airports. And they can do this by leveraging private and public partnerships in poor infrastructural areas.
AIHS 2024 presents the platform for businesses and investors through its B2B meeting, an opportunity you do not want to miss to invest in Africa.
According to The Guardian Nigeria, Africa’s untapped resources have the potential to turn around its economy. The continent has over 800 trillion cubic feet of natural gas, with Nigeria, Algeria, and Senegal taking the lead.
3. Relative Political Stability
According to a recent report by The Global Economy, the political stability index in Africa stands at -2.5 weak and 2.5 strong. The report revealed an average based on 53 countries at -0.68 points, making the region’s political environment relative.
Investors can leverage the relative political stability in Africa to make fortunes. While many African countries need to improve their political leadership and create an enabling environment for investors to thrive, the region indeed remains a hotspot for investments and the AIHS 2024 Theme, Housing For All – Financing The Housing we need,will be a door opener for investors to leverage on the relative political stability.
6. Flourishing Housing and Construction Industry
Swift urbanisation across Africa has led to a rise in housing and construction activities and due to the escalating disposable income, renovation activities have surged greatly, thus inviting positive growth for the housing and construction market. Africa has renowned developers with credibility from innovative and new building technologies to urban masterplans, making the continent ideal for a wise and strategic investor.
An even wiser investor will take advantage of the diverse opportunities the Africa International Housing Show which has been running for 17years now will present.
7. Consumer Increased Demand
Available report by World Data Lab describes Africa as a growing middle class. The data disclosed that business models targeting consumers at the bottom of the income pyramid should consider emerging economies.
Investors with consumer-oriented business models should consider Africa in order to benefit from the growing middle class. According to the Brookings Institute, the continent presents exciting retail and distribution business opportunities.
These opportunities are widely available at AIHS 2024 for investors to grab.
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8. Untapped Markets
Some of these natural resources can be tapped by investors to boost infrastructure development and create an even larger housing market.
9. Potential Workforce
According to Cities Alliance, Africa has a large population of youths, making it a potential workforce benefit for investors. The report further disclosed that over 60% of the continent’s population is below 25. The World Economic Forum describes Africa’s youthful population as an opportunity for significant economic transformation and growth.
Investors can benefit from this youthful population to build a large workforce for rewarding opportunities and for this reason the Africa International Housing Show has as part of its opportunities the AIHS Under 40 CEOs platform
10. Digital Acceptance
A recent digital adoption analysis by Intelligent CIO revealed that Africa has the highest adoption rate than other regions globally. Higher digital adoption rates unlock enormous economic potential for investors in the continent. With this, it is safe to say Africa offers rewarding opportunities for digital technologies for smart city housing and construction projects.
The continent is home to bright minds skilled in property technology, data analytics, programming, content, mobile, and search engine marketing. Emerging proptech businesses can improve the stability and smartness of many African cities.
Proptech discussions and solutions are also a part of the Africa International Housing Show 2024
Antecedents of AIHS
Recall that the Abuja International Housing Show was recently changed to Africa International Housing Show, following the antecedents of the organisation in bringing together stakeholders from Africa and other parts of the world to network, interact, and exchange feasible ideas to help develop the sector.
Over the years the international platform has hosted many top government functionaries such as Senate Presidents, Governors, Ministers including the present minister of works and housing in Nigeria and Ghana, many commissioners for housing, experts from IFC, World Bank, AUHF and many CEOs of government owned housing finance agencies, state owned housing corporations, CEOs of public and private real estate companies.
The event features not less than 400 exhibitors annually from about 15 countries with over 15,000 participants in the international housing finance conference and B2B meetings among various groups of investors drawn from different areas of the industry. Among the international experts who have participated in the conference are Debra Erb, former Managing Director of Housing Real Estate Project Finance DFC, USA, Marja C Hoek-Smit, Director of the International Housing Finance Program of the Wharton School Zell /Lurie Real Estate Center and and many tested international experts in housing Finance
The International Housing Show/Exhibition features Products Presentation, Exhibition of Building Technology for affordable housing from different parts of the world, home interiors, modern construction equipment, chemical and paints products, mortgage services, housing projects, interactive forums with high net-worth participants. This year’s event will feature participants from not less than 15 countries, with a target of about 20 International Speakers. The show is organised by International Housing and Construction Show Limited and Fesadeb Communications Limited with the support of some other reputable government and non-government organisations.
Conclusion
Now that you know the reasons to invest in Africa consider attending the Africa International Housing Show, the largest housing and construction event in Africa. Come and be a part of leading discussions, investment and business opportunities. Instead of investing with uncertainty, gather knowledge and develop strategies with realistic goals at the world class event. Also, learn about emerging innovations, policies, governance, regional trade and solutions in housing and construction.The 2024 is being organized in collaboration with Nigeria Federal Ministry of Housing and Urban Development, with support of Sheiter Afrique Development Bank