Economy
Are Investors in West Africa Shifting Focus?
With global and regional capital continuing to flow into West African Real Estate, investors are starting to diversify their funds across the region and move away from the previous Nigeria and Ghana bias.
Following from the first market correction seen in 20 years, crippling Central Bank debt and the pegging of the Naira, the reaction to Nigeria’s (in President Buhari’s words) ‘suddenly poor’ status has been fight or flight.
Some, like Novare, Old Mutual, Johnson & Johnson and Pick ‘n Pay sticking to their guns and continuing to make gains, while others, like Sun International, Tiger Brands and Truworths, choosing to take their business elsewhere.
“The Nigerian real estate investment market is experiencing a unique combination of the first economic recession in 25 years, a rapidly devaluing currency and a retail and commercial development boom. This has led to an oversupply of prime real estate at a time when tenant demand has fallen to its lowest levels in over a decade, Broll has been at the forefront in advising, leasing and marketing for a large proportion of international investors and developers. We are actively working with our clients to come up with innovative property leasing solutions by providing tenant concessions while ensuring the long-term financial viability of the asset,” says Broll Nigeria CEO, Bolaji Edu.
“While the present crisis may seem insurmountable, Nigeria’s experience is no more than the growing pains of developing economy as experienced in South America as well as Eastern Europe. Investors are still withholding from Nigeria as they wait for the storm to pass,” argues Edu.
But where are investors going?
In the midst of Nigeria’s struggles, Ghana, is slowly gaining ground again. Along with the IMF’s approval on a further $116.2 million disbursement, there is a positive shift in Ghana due to improvements in power supply, exchange rates and a stabilization in inflation. With a stable growth outlook, business views are at their most favourable levels in years. CEO of AttAfrica, Kevin Teeroovengadum, weighs in:
“Ghana had a tough 2 years spanning over 2014/15 and seem to have to reached the bottom of the cycle during the 1st semester of 2016. With the government having agreed a deal with the IMF in 2015, we’ve seen an improvement in government’s fiscal discipline, stabilisation of the Cedi, availability of dollars and less frequent cuts in power supply. All eyes are now on the presidential elections in December 2016. The general mood of the people on the streets seem to be better than last year which we can see in a rise in foot traffic and trading density at all our malls. A number of retailers are now coming back to request for new opportunities outside Accra and we’ve seen a significant rise in the leasing target of our retail development in Kumasi over the last quarter.”
Francophone nations are also gaining a place in the spotlight. While they have no doubt been developing at a rapid rate for some time, in these times, their relative stability is becoming a significant drawcard for investors in the West African region, who are starting to view West Africa more broadly than just the bright lights of Lagos. In particular, the Ivory Coast is currying some serious favour following their new title as ‘Africa’s fastest growing economy’, and a number of reforms which have resulted in impressive economic growth.
“A return to political stability, sustained infrastructure investment and stable regional currency have made Côte d’Ivoire the darling of international investors and operators among Francophone West African countries. Senegal also continues to attract investment, with smaller, more focused pockets of growth in other countries in the region. Many players are approaching these markets with a strong investment and development mandate. European or South African firms lead the pack, though we are noting growing interest from Ghanaian and Nigerian firms and investors. Côte d’Ivoire remains a frontier market, with opportunities across all asset classes as well as specific challenges: lack of transparency and low levels of local expertise are among these, but can be overcome by new entrants through in-depth knowledge of the local market,” explains Ivan Cornet, Managing Partner of Latitude Five.
This year’s West African Property Investment Summit (WAPI) aims to equip investors and other stakeholders with the necessary information and insight from top speakers and industry leaders, in order to encourage a fruitful way forward.
Beyond the possible success of starting afresh in new territory, investors also have the opportunity to learn from past experience. There are plenty of resources detailing how to navigate deals in countries like Senegal and Ivory Coast; investors also need to be prepared to do the hard work of understanding these new spaces. On the ground market research, understanding of consumer patterns as well as socio-political concerns all form part of doing effective due diligence.
From discussions around the shift in investor focus, the rapidly evolving retail sector, to navigating through negative economic climates in Nigeria and Ghana, the discussions at WAPI position stakeholders in the eye of the West African storm, with the necessary tools to help them weather it.
Top West African deals to watch
Despite the shifts in the West African real estate environment, the region is still seeing some big bill deals. Kfir Rusin, General Manager of API events breaks down the biggest investments.
Old Mutual Investment Group and the Nigerian Sovereign Investment Authority raise US$500 million towards a Nigerian real estate fund
RMB Westport launches $250 Million Fund for Nigeria, Ghana, Angola and the Ivory Coast
Actis raises over $500m for new African real estate fund
Novare Africa Property Fund II announced its final close at the end of June 2016, having raised $350 million for investment.
Eris Property Group unveil plans for Agbara Industrial Estate in Lagos Nigeria
West Africa’s largest mixed-use development, The Exchange” project at Airport City in Accra launched be Mabani Holdings Ghana Limited, in partnership with Actis LLP
Novare’s $82.8m 22,000m2 Lekki mall began trading at the end of August 2016
RMB Westport’s 10,800m2 Circle Mall began trading at the end of 2015
Churchgate launch 20,000m2 World Trade Centre in Abuja
CFAO and Carrefour open the Playce Marcory Mall, Ivory Coast, in December 2015
Carlson Rezidor adds Ghana to its growing portfolio with the introduction of the Radisson Blu Hotel Accra Airport, The Exchange with 207 keys.
Hilton Worldwide announced its plans to open a 350 guestroom and suite hotel at the Lagos Murtala Muhammed International Airport, Nigeria.
EVENT INFORMATION AND CONTEXT
The West African Property Summit (WAPI) takes place in Accra, Ghana on 16 – 17 November. This two-day conference will be a deep dive into issues affecting the West African real estate market, and a start for discussion and solutions building. The summit tackles discussions around development, private equity, finance and economics, with insights from some of the best minds in real estate investment today.
In addition to the experts in this release, speakers for the summit also include:
Kojo Addo-Kufuor
Managing Director, Ghana Home Loans
Funke Okubadejo
Director: Real Estate, Actis Real Estate
Jan Van Zyl
Head of Property Development, Novare
Kofi Asomaning
Managing Director, Capri Investments
Cheick Sanankoua
Managing Partner, HC Capital
Lasse Ristolainen
Development Director: Sub-Saharan Africa, Hilton
By Dipo Olowookere
The upward trajectory seen at the Nigerian Exchange (NGX) Limited in the past sessions was halted on Thursday as a result of profit-taking in Aradel Holdings, MTN Nigeria, GTCO, and others.
Nigerian stocks were down by 0.43 per cent because of the selling pressure. It was the first loss in 2026 and also the first in 23 trading session. The last time Customs Street ended in red was December 10, 2025.
The decision of investors to trim their exposure to equities contracted the All-Share Index (ASI) by 714.66 points during the session to 166,057.29 points from 166,771.95 points and brought down the market capitalisation by N458 billion to N106.323 trillion from N106.781 trillion.
A look at the sectorial performance indicated that the energy, commodity, and insurance indices were down by 2.21 per cent, 1.14 per cent, and 0.24 per cent, respectively, while the banking, consumer goods, and industrial goods sectors were up by 0.78 per cent, 0.33 per cent, and 0.01 per cent apiece.
Yesterday, investor sentiment was weak after the bourse ended with 26 price gainers and 41 price losers, showing a negative market breadth index.
McNichols declined by 9.99 per cent to trade at N6.58, Caverton crashed by 9.47 per cent to N7.65, Ikeja Hotel collapsed by 9.43 per cent to N35.05, FTN Cocoa dropped 9.38 per cent to sell for N7.05, and Neimeth went down by 8.91 per cent to N9.20.
On the flip side, Nestle Nigeria gained 10.00 per cent to quote at N2,153.80, NCR Nigeria appreciated by 9.97 per cent to N116.90, Jaiz Bank improved by 9.92 per cent to N8.20, Morison Industries rose by 9.90 per cent to N5.66, and Mecure Industries grew by 9.84 per cent to N97.70.
During the session, market participants traded 1.0 billion stocks worth N31.6 billion in 51,227 deals compared with the 761.9 million stocks valued at N29.9 billion transacted in 55,751 deals at midweek, representing a drop in the number of deals by 8.12 per cent, and a surge in the trading volume and value by 31.25 per cent, and 5.69 per cent, respectively.
Sovereign Trust Insurance returned on top of the activity chart with 245.2 million units sold for N798.5 million, Access Holdings traded 78.4 million units worth N1.8 billion, Zenith Bank transacted 72.4 million units for N5.0 billion, Jaiz Bank exchanged 53.7 million units valued at N433.9 million, and Lasaco Assurance traded 53.4 million units worth N135.1 million.
By Adedapo Adesanya
Crude oil was down by around 4 per cent on Thursday after the United States President, Mr Donald Trump, said the crackdown on protesters in Iran was easing, calming concerns over potential military action against the Middle-East country and oil supply disruptions.
Brent crude futures depreciated by $2.76 or 4.15 per cent to $63.76 a barrel and the US West Texas Intermediate (WTI) crude futures fell by $2.83 or 4.56 per cent, to $59.19 a barrel.
President Trump said he had been told that killings during Iran’s crackdown on protests were easing and he believed there was no current plan for large-scale executions, though he warned that the US was still weighing military action against the oil producer, which is a member of the Organisation of the Petroleum Countries (OPEC).
Thousands of people are reported to have been killed in the weeks-long protests, and the American president has vowed to support demonstrators, saying help was “on its way.”
Iran has threatened the US with reprisals were it to be attacked, alongside conciliatory signals, including the suspension of a protester’s execution.
The New York Times reported that many of the US Gulf allies, including several of Iran’s own rivals, have also pushed against a US military intervention, warning that the ripple effects would undermine regional security and damage their reputations as havens for foreign capital.
Regardless, the US withdrew some personnel from military bases in the Middle East, after a senior Iranian official said Iran had told neighbours it would hit American bases if America strikes.
Venezuela has begun reversing oil production cuts made under a US embargo, with crude exports also resuming. The OPEC member’s oil exports fell close to zero in the weeks after the US imposed a blockade on oil shipments in December, with only Chevron exporting crude from its joint ventures with PDVSA under US license.
The embargo left millions of barrels stuck in onshore tanks and vessels. As storage filled, PDVSA was forced to shut wells and order oil production cuts at joint ventures in the country.
With this development, the Venezuelan state oil company is now instructing the joint ventures to resume output from well clusters that were shut.
On the demand side, OPEC said on Wednesday that 2027 oil demand was likely to rise at a similar pace to this year and published data indicating a near balance between supply and demand in 2026, contrasting with other forecasts of a glut.
By Adedapo Adesanya
Nigeria’s crude oil production slipped slightly to 1.422 million barrels per day in December 2025 from 1.436 million barrels per day in November, according to data from the Organisation of Petroleum Exporting Countries (OPEC).
OPEC in its Monthly Oil Market Report (MOMR), quoting primary sources, noted that the oil output was below the 1.5 million barrels per day quota for the nation.
The OPEC data indicate that Nigeria last met its production quota in July 2025, with output remaining below target from August through December.
Quarterly figures reveal a consistent decline across 2025; Q1: 1.468 million barrels per day, Q2: 1.481 million barrels per day, Q3: 1.444 million barrels per day, and 1.42 million barrels per day in Q4.
However, the cartel acknowledged that despite the gradual decrease in oil production, Nigeria’s non-oil sector grew in the second half of last year.
The organisation noted that “Nigeria’s economy showed resilience in 2H25, posting sound growth despite global challenges, as strength in the non-oil economy partly offset slower growth in the oil sector.”
According to the report, cooling inflation, a stronger Naira, lower refined fuel imports, and stronger remittance inflows are improving domestic and external conditions.
“A stronger naira, easing food prices due to the harvest, and a cooling in core inflation also point to gradually fading underlying pressures”, the report noted.
It forecast inflation to decelerate further on the back of past monetary tightening, currency strength, and seasonal harvest effects, though it noted that monetary policy remains restrictive.
“Seasonally adjusted real GDP growth at market prices moderated to stand at 3.9%, y-o-y, in 3Q25, down from 4.2% in 2Q25. Nonetheless, this is still a healthy and robust growth level, supported by strengthening non-oil activity, with growth in that segment rising by 0.3 percentage points to 3.9%, y-o-y. Inflation continued to decelerate in November, with headline CPI falling for an eighth straight month to 14.5%, y-o-y, following 16.1%, y-o-y, in October”.
OPEC, however, stated that while preserving recent disinflation gains is important, the persistently high policy rate – implying real interest rates of around 12% – risks weighing on aggregate demand in the near term.
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