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 bulls regained control of the Nigerian Exchange (NGX) Limited on Friday after surrendering power to the bears a day earlier as a result of mild selling pressure.
Yesterday, the Nigerian bourse rebounded by 0.54 per cent, mainly due to the gains recorded by First Holdco and others.
Data harvested by Business Post indicated that the industrial goods and energy sectors were flat, while the banking index chalked up 3.13 per cent. The insurance space expanded by 1.08 per cent, and the consumer goods counter rose by 0.21 per cent.
Consequently, the All-Share Index (ASI) went up by 1,316.52 points to 243,462.13 points from 242,145.61 points, and the market capitalisation grew by N850 billion to N157.057 trillion from N156.207 trillion.
The market breadth index was bullish during the last trading session of this week, printing 31 appreciating stocks and 23 depreciating stocks, representing strong investor sentiment.
First Holdco led the advancers’ log after it climbed 9.97 per cent to N95.95, Haldane McCall appreciated by 9.94 per cent to N3.65, LivingTrust Mortgage Bank soared by 9.73 per cent to N3.72, LASACO Assurance jumped by 5.26 per cent to N2.00, and Thomas Wyatt gained 5.10 per cent to quote at N3.09.
On the flip side, Red Star Express declined by 9.50 per cent to N20.00, Omatek slipped by 6.08 per cent to N1.70, C&I Leasing shrank by 5.93 per cent to N5.55, Jaiz Bank crashed by 5.03 per cent to N8.50, and Livestock Feed fell by 3.89 per cent to N8.65.
As for the activity chart, market participants bought and sold 685.9 million equities for N42.7 billion in 44,134 deals on Friday versus the 498.5 million equities worth N34.9 billion traded in 39,484 deals on Thursday, implying a rise in the trading volume, value, and number of deals by 37.59 per cent, 22.35 per cent, and 11.78 per cent, respectively.
Investors’ darling for the day was First Holdco, with a turnover of 225.9 billion units valued at N21.0 billion, Guinea Insurance sold 53.4 million units for N45.2 million, Zenith Bank traded 41.5 million units worth N4.7 billion, Access Holdings exchanged 29.1 million units valued at N720.6 million, and UBA exchanged 27.5 million units for N1.2 billion.
By Modupe Gbadeyanka
The Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has appealed to the Nigeria Customs Service (NCS) to deepen its sensitisation on the newly introduced Green Tax Surcharge Policy.
The chairman of APFFLON, Mr Akeem Ayobiojo, made this plea on behalf of his colleagues on Tuesday, July 14, 2026, at the Customs House in Abuja, during a stakeholders’ engagement with the agency.
He also called for improvements in the administration of Pre-Arrival Assessment Reports and Post Clearance Audit and the African Continental Free Trade Area (AfCFTA).
Mr Ayobiojo stated that freight forwarders were happy to work with the customs, commending the organisation for implementing Chapter 99, describing it as a major relief for manufacturers.
He, however, emphasised that a deeper understanding of the new tax was necessary for his members, saying more predictable procedures would reduce delays and unexpected costs for importers and freight forwarders.
In his remarks, the Comptroller-General of Customs, Mr Adewale Adeniyi, assured manufacturers, freight forwarders and other players in the nation’s trade sector that the NCS would continue to engage them on fiscal policies affecting their businesses, saying sustained dialogue remains key to resolving implementation challenges and improving the country’s trading environment.
He also promised them the service’s resolve to enhance and facilitate trade, acknowledging that, “Your feedback is important because it helps us understand what is happening in the field, and where necessary, we will take your concerns to the Federal Ministry of Finance and other relevant government institutions.”
Speaking about Authorised Economic Operator (AEO), Mr Adeniyi further explained that Nigeria would not lower the standards required under the Authorised Economic Operator Programme as the initiative is guided by global benchmarks established by the World Customs Organisation (WCO).
On her part, the Deputy Comptroller-General of Customs for Tariff and Trade, Ms Caroline Niagwan, clarified that electric vehicles can be imported without payment of duty only by holders of Import Duty Exemption Certificate (IDEC) issued by the Federal Ministry of Finance.
She also urged importers facing classification disputes to take advantage of the Advance Ruling system, noting, “Once an Advance Ruling is issued based on genuine documentation, importers have certainty on classification, valuation or origin before the goods arrive, thereby reducing unnecessary disputes during clearance.”
By Adedapo Adesanya
The Naira appreciated against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, July 17, by N1.35 or 0.07 per cent to N1,380.18/$1 from N1,381.53/$1.
It also improved its value against the Pound Sterling in the same market segment during the session by N11.75 to trade at N1,854.42/£1 compared with the previous day’s N1,866.17/£1, and gained N5.69 against the Euro to sell at N1,576.99/€1 versus Thursday’s closing price of N1,582.68/€1.
In the same vein, the Naira chalked up N1 against the United States currency yesterday at the GTBank forex desk to quote at N1,388/$1, in contrast to the preceding day’s N1,389/$1, but closed flat at the black market at N1,405/$1.
The appreciation of the Nigerian currency on Friday came amid fresh signals that Nigeria is building its external reserves for protection against shocks and excessive currency volatility.
The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, said the country’s gross reserves had risen above approximately $52 billion by 15 July, while net reserves had increased from about $3 billion when the current CBN leadership took office to more than $40 billion.
Mr Cardoso linked the increase in reserves to reforms that had restored greater confidence in the foreign exchange system. He also pointed to efforts to diversify foreign currency inflows, including policies designed to increase remittances through official channels.
He noted that monthly diaspora remittances had risen above $600 million and the CBN expected them to reach approximately $1 billion by the end of 2026. The target is part of a broader effort to grow reserves through recurring inflows rather than temporary measures.
The improvement, he argued, had strengthened Nigeria’s capacity to respond when unexpected events threatened market stability.
The apex bank has also launched a new digital platform that will track every foreign exchange transaction involving Bureau De Change (BDC) operators, marking a major step in its efforts to improve transparency and strengthen oversight of Nigeria’s retail forex market.
As for the crypto market, prices were up as markets overlooked geopolitical developments and macro forces weighing on the whole market ecosystem rather than anything crypto-specific, with Cardano (ADA) up by 4.6 per cent to $0.1661.
Bitcoin (BTC) jumped by 1.8 per cent to $63,968.32, Ethereum (ETH) improved by 0.9 per cent to $1,843.88, Dogecoin (DOGE) also rose by 0.9 per cent to $0.0723, Solana (SOL) soared by 0.6 per cent to $74.90, Ripple (XRP) also appreciated by 0.6 per cent to $1.08, and Binance Coin (BNB) advanced by 0.1 per cent to $567.32.
However, TRON (TRX) depreciated by 0.2 per cent to close at $0.3218, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
