‘Real estate key driver for African development’

 

BERTHA MASAMVU

The real estate industry is on the rise in Africa with the continent fast emerging as a hotspot for investment due to rapid urbanisation and rising middle-class population, businessman and Zimbuild Contracting founder Dr Tinashe Manzungu (pictured left) has said.

Dr Manzungu was speaking during an annual lecture to commemorate the 2023 African Achievers Awards at the European School of Economics in the United Kingdom attended by businesspeople, politicians and stakeholders.

The event was held under the theme “Understanding the Opportunities in Real Estate Investment in Africa.”

 “Real estate development has gained popularity with investors which has seen the acceleration spread to rural areas. The distinction between urban and rural in Zimbabwe is slowly blurring out as urban facilities and amenities are being constructed and introduced in rural areas,” Dr Manzungu, who is also the TM Group chairman added.

He said the rebirth of the real estate industry was also at the core of the government’s fundamental structure in line with the National Development Strategy (NDS1).

“Africa is emerging as a potential hotspot for real estate investment due to its rapid urbanization, rising middle-class population, increased foreign direct investment, and improving business environment. Statistics show promising opportunities and strategies that can accelerate Africa’s growth in the real estate sector.”

“Real estate development has shaken off the COVID-19 cloud in Zimbabwe with the increase in demand for rental space, suburban offices and industrial properties at 5.4 % year on year from 2022.”

Africa is experiencing significant urbanization, with its urban population expected to double by 2050. This urban growth creates a demand for housing, commercial spaces, and infrastructure, making it an attractive investment opportunity for real estate developers.

 

Dr Manzungu said 2030, Africa’s top 18 cities will collectively have a combined spending power of $1.3 trillion with an expected growth in demand for residential properties in key capital cities including Lagos in Nigeria, Nairobi in Kenya among other key economies.

 

“Overall, Africa’s real estate sector offers significant opportunities for growth. By focusing on infrastructure development, fostering public-private partnerships, promoting affordable housing, and leveraging technology, Africa can accelerate its real estate sector’s growth and attract more investment,” he said.

 

Dr Manzungu was awarded with the Seal of the African Achievers Award, Excellence in Leadership and Global Corporate Enterprise in Africa award at the Palace of Westminster, Houses of Parliament in London.

 

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