Economy
West Africa Property Investment Summit To Showcase Ghana Growth
By Modupe Gbadeyanka
From tomorrow, Tuesday, November 16 to Wednesday, November 17, 2016, experts in the property investment industry in Africa and the world will converge in Accra, Ghana, for the annual West Africa Property Investment Summit.
They will meet to discuss the challenges, opportunities and the future of real estate in the West African region.
The event is expected to take place at the Kempinski Hotel in Accra, Ghana’s capital city.
Despite very often receiving less coverage than its powerhouse cousin Nigeria, the summit’s host nation has emerged as a powerful real estate investment destination, and a favourable endorsement from the World Bank as West Africa’s “best place to do business.”
Ghana seems to be on the upswing despite some significant struggles in 2014 and 2015. This followed IMF approval of a $116.2 million disbursement to the country, which has resulted into significant improvements in power supply, exchange rates and the local currency, the Cedi, which is stabilizing.
These changes, coupled with the emergence of significant improvements in the housing, retail and commercial sectors, and some pioneering mixed-use developments on the horizon present the possibility for a brighter Ghanaian future. These improvements make it far easier to believe the growing sentiment that Ghana is rising and Ghana is doing well. Ghana recently received a solid credit rating from Moody’s, which was followed by equally positive ratings by Fitch as well as Standards and Poors.
The West African retail market has been revolutionized over the past ten years. There has been considerable growth in the sector which has meant a significant change in the view of retail investment in the region. But recent economic challenges have made it difficult for the sector to continue to flourish in the same way as previous years. Even the best retail spaces are struggling to incentivize the right number of tenants, but the Ghanaian market has weathered this challenge by adjusting its tactics. Broll Ghana CEO, Kofi Ampong explains.
“To ease the increasing pressure on landlords, given the prevailing market realities of higher vacancy rates, some Landlords in order to drive occupancy in their malls have adopted a strategy of subdividing larger boxes originally meant for one tenant for use by multiple tenants in order to reduce vacancy rates,” he says.
In particular, the residential market in Ghana is at its most active in recent history, registering over 85,000 transactions a year over the past decade. However, with an abundance of new residential developments both in the pipeline and coming to fruition on the back of weakened consumer purchasing power, it is difficult to know whether the market will boom as a result, or suffer from oversupply in middle to high income housing. Despite some challenges, the summit will tackle the potential for the Ghanaian housing market, and the missing links still required. General Manager at Devtraco Limited, Elvin Larkai, remains positive about the sector’s outlook.
“There are massive opportunities for Ghana’s housing sector. Demand continues to grow and this serves as an added incentive for real estate investors. Unfortunately, a lack of reliable data is impeding progress. We need such data to improve our products and services to house hunters. This would also lead to a more thriving industry, contributing immensely to the country’s economy,” he says.
While the predominant focus on real estate rests in the commercial and housing sectors, some companies are turning their attention to blends between the two. Rendeavour’s Appolonia City development is one such example – as a 2250 acre mixed-use and mixed-income in the Greater Accra Metropolitan Area. The project is being developed for residential properties, retail and other commercial centres, as well as schools, healthcare and other social infrastructure. All local and national regulatory approvals have been met and a full land title certificate has been granted. The City has been planned to include key amenities and allow for the integration and flourishing of its two key elements.
“The combination of functions is the only way to create the quality people rightfully expect of urban developments in the 21st century. Mixed-use developments have been proven to stand the test of time and as future-proof real estate investments,” explains Holger Adam, Country Head for Rendeavour Ghana
While the 2016 election will play a major factor in Ghana’s trajectory, the landscape for investment is certainly more amenable than even just a year ago. With an internal structure being clearly established, and successful strategies and projects being implemented in the West African nation, current wisdom suggests the country will continue its upward real estate journey for some time.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its gains by 0.91 per cent on Wednesday, June 3, spurred by three price gainers led by FrieslandCampina Wamco Nigeria Plc, which rose by N13.90 to sell N210.41 per share versus the previous day’s N196.51 per share. MRS Oil appreciated by N10 to N190.00 per unit from N180.00 per unit, and Food Concepts Plc added 5 Kobo to sell at N3.00 per share versus N2.95 per share.
As a result, the market capitalisation increased by N23.91 billion to N2.660 trillion from N2.636 trillion, and the NASD Unlisted Security Index (NSI) gained 39.97 points to finish at 4,446.27 points, in contrast to Tuesday’s 4,406.30 points.
The NASD exchange witnessed three price losers at midweek, led by Nipco Plc, which shrank by N21.30 to close at N325.97 per unit compared with the previous session’s N347.27 per unit, Nitrox Industrial Gases Plc went down by N1.20 to quote at N24.30 per share versus the preceding session’s N25.50 per share, and Central Securities Clearing System (CSCS) Plc weakened to by 69 Kobo to N75.41 per unit from N76.10 per unit.
The volume of trades yesterday significantly improved by 71.5 per cent to 527,221 units from Tuesday’s 307,363 units, as the value of transactions soared by 49.9 per cent to N64.2 million from the preceding session’s N49.9 million, and the number of deals surged by 9.5 per cent to 46 deals from 42 deals.
When trading activities ended for the day, Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units worth N6.5 billion, and CSCS Plc with 64.6 million units exchanged for N4.4 billion.
GNI Plc also ended the session as the most traded stock by volume on a year-to-date basis with 3.4 billion units sold for N8.4 billion, followed by Infracredit Plc with 2.3 billion units traded for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
By Adedapo Adesanya
The positive run of the Naira against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) continued on Wednesday, June 3, with the former chalking up N3.79 or 0.28 per cent against the latter, closing at N1,357.26, in contrast to the preceding session’s N1,361.05/$1.
Similarly, the Nigerian currency gained N10.52 against the Pound Sterling in the official market during the session to close at N1,822.67/£1 compared with the previous rate of N1,833.19/£1, and appreciated against the Euro by N9.56 to N1,574.83/€1 from N1,584.39/€1.
Further, at the black market, the Naira improved its value against the greenback at midweek by N5 to trade at N1,375/$1 compared with the N1,380/$1 it was traded a day earlier, and at the GTBank FX counter, it gained N6 to sell for N1,372/$1 versus N1,378/$1.
The boost came as the country’s external reserves continued to gain momentum. A look at the updated data from the Central Bank of Nigeria (CBN) showed that foreign reserves continue to increase with two consecutive inflows in June 2026, settling at $49.876 billion as of Tuesday.
Foreign portfolio investors, exporters and non-bank corporates continue to keep the supply side strong, with the less aggressive FX interventions by the CBN at the official window in recent times helping to ease worries about capital flight.
The apex bank reported that interbank FX turnover declined to $133.731 million across 136 deals, from $169.822 million the previous day.
Meanwhile, the cryptocurrency market remained bearish due to sell-offs triggered by geopolitical uncertainties and the US stock market rally.
Cardano (ADA) dipped by 5.5 per cent to $0.2046, Binance Coin (BNB) slumped by 4.8 per cent to $627.56, Solana (SOL) shrank by 3.9 per cent to $72.99, Ethereum (ETH) depreciated by 2.9 per cent to $1,844.53, and Bitcoin (BTC) slipped by 2.7 per cent to $65,675.87.
Further, Dogecoin (DOGE) depleted by 1.4 per cent to $0.0928, Ripple (XRP) declined by 0.7 per cent to $1.21, and TRON (TRX) lost 0.4 per cent to sell at $0.3336, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) gained 0.01 each to settle at $0.9986 and $0.9997, respectively.
By Dipo Olowookere
Nigeria’s stock market further depleted by 1.44 per cent on Wednesday following panic sell-offs by investors, who are cutting down their exposure to local equities.
Business Post observed that profit-taking dominated Customs Street at midweek, with all the key sectors of the Nigerian Exchange (NGX) Limited closing in red.
The insurance space shed 2.76 per cent, the industrial goods index lost 1.55 per cent, the banking counter declined by 1.53 per cent, the consumer goods segment shrank by 0.28 per cent, and the energy sector weakened by 0.05 per cent.
As a result, the All-Share Index (ASI) contracted by 3,554.05 points to 243,132.61 points from 246,686.66 points, and the market capitalisation moderated by N2.279 trillion to N155.940 trillion from N158.219 trillion.
Lafarge Africa led the losers’ chart yesterday after it gave up 9.97 per cent to trade at N307.90, Zichis lost 9.82 per cent to close at N29.20, Learn Africa depreciated by 9.80 per cent to N11.50, John Holt crashed by 9.80 per cent to N13.80, and Consolidated Hallmark dipped by 8.84 per cent to N6.19.
On the flip side, Abbey Mortgage Bank topped the gainers’ log after it grew by 9.93 per cent to N7.75, International Energy Insurance appreciated by 9.89 per cent to N6.00, Tripple G gained 9.80 per cent to sell for N4.37, Universal Insurance expanded by 8.91 per cent to N1.10, and Royal Exchange improved by 7.14 per cent to N1.50.
A total of 17 stocks gained weight yesterday, while 43 stocks lost weight, indicating a negative market breadth index and weak investor sentiment. This has been the mood of the market since the beginning of this week.
Market participants transacted 923.0 million shares worth N42.3 billion in 69,332 deals on Wednesday, in contrast to the 718.8 million shares valued at N29.3 billion traded in 71,683 deals on Tuesday, representing a drop in the number of deals by 3.28 per cent, and a rise in the trading volume and value by 28.41 per cent and 44.37 per cent, respectively.
Sterling Holdings led the activity chart with 264.6 million units valued at N2.1 billion, Access Holdings traded 76.7 million units worth N1.8 billion, Linkage Assurance exchanged 55.1 million units for N99.2 million, VFD Group sold 35.5 million units worth N378.8 million, and Ellah Lakes transacted 33.1 million units valued at N334.3 million.
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