AfricaIntegrity_LogoAfricaIntegrity_LogoAfricaIntegrity_FooterLogoAfricaIntegrity_Logo
  • Who we are
    • In Brief
    • Our team
  • What we do
    • Corporate Investigations
    • Risk Advisory
    • Strategic Intelligence
    • Training and Systems Reviews
  • How we work
    • Case studies
  • Where we work
    • Coverage
  • Why us
    • Why us
  • Contact us
September 9, 2021
Categories
  • Africa Integrity insights
  • Central Africa
  • East Africa
  • North Africa
  • Southern Africa
  • West Africa
Tags

Sectors to Watch: Urban Development

Following the economic shock caused by the Covid-19 pandemic, investors, policymakers and businesspeople are trying to discern which sectors will drive economic growth in the coming years. In our August 2021 newsletter, we identified 5 sectors to watch in Africa, which are likely to be at the forefront of the continent’s post-Covid-19 economic recovery. The final of these is urban development.

Urban Development

The growth of the four sectors already outlined in this series will be underpinned by Africa’s urban development, which will provide a range of investment opportunities in infrastructure and construction. While there will certainly be investment in rural Africa, particularly in sectors such as renewable energy and healthcare, the focus will be on the continent’s rapidly growing urban centres. According to the OECD, Africa currently has the fastest urbanisation rate in the world and the continent’s cities are projected to be home to an additional 950 million people by 2050. It is widely recognised that Africa’s cities are not equipped to deal with this influx of people and, therefore, urban development will be a key area of growth in the coming years.

Africa’s cities have long been characterised as lacking in infrastructure; however, there are signs of change on the horizon, as investment in this sector accelerates. African infrastructure projects in the pipeline with a completion date of 2025 are estimated to be worth up to $2.5 trillion. Much of this will focus on the continent’s expanding cities, with infrastructure associated with healthcare, power and internet access likely to be prioritised by policymakers and investors, as Africa’s cities modernise. This drive towards modernisation can be seen in Nairobi, where Liquid Telecom is building the largest data centre in East Africa, which will be powered by solar energy. Similar investments will follow, as companies seek to meet the needs of Africa’s growing tech-savvy middle class. This includes in the healthcare sector, where the importance of internet access can also be seen with the rapid increase in health tech start-ups: it is estimated that almost a third of such companies were established in the last two years.

This move towards modernising Africa’s cities will not only create investment opportunities in the continent’s pre-existing urban centres, but also lead to the construction of new planned cities. There are already a number of such cities under construction, such as Egypt’s New Administrative Capital and Konza Technology City in Kenya, as governments seek to relieve the pressure of urbanisation. According to the UN, Africa is home to three megacities – Cairo, Kinshasa and Lagos – but this is expected to rise to 10 by 2050. Accordingly, a number of countries, including Nigeria, Rwanda, Senegal and Zambia have such new cities in the pipeline.

Although promoted by governments, the private sector is very much at the forefront of such urban development, with 75 percent of new cities being privately funded. Consequently, as more countries look towards modernising existing urban centres and building new cities, investment opportunities in urban development are set to increase rapidly.

This article originally featured in Africa Integrity’s August 2021 Newsletter. To join our newsletter mailing list, please contact us.

Share

Recent Posts

  • Nigeria 2023: A Three Horse Race? November 3, 2022
  • Senegal: A Term Too Far August 11, 2022
  • Seismic Electoral Politics in Africa August 3, 2022
  • Africa Integrity Foresight – Russia & Ukraine: Food Insecurity Feeds Instability May 5, 2022

AFRICA INTEGRITY INSIGHTS

Twitter

#SouthSudan: President Salva Kiir makes a second unilateral decision this month regarding the defence ministry - following the removal of Vice President Riek Machar's wife - by appointing an ally to the key ministry, jeopardising the faltering peace agreement made in 2018

Reuters Africa @ReutersAfrica

South Sudan president appoints own defence minister, breaching peace deal https://www.reuters.com/world/africa/south-sudan-president-appoints-own-defence-minister-breaching-peace-deal-2023-03-30/

#Kenya: Tensions continue to increase in Kenya, as opposition-led protests show little sign of abating, and government supporters have turned to attacking properties owned by political figures, including former President Kenyatta.

BBC News (World) @BBCWorld

Hundreds of protesters storm property of former Kenyan president Uhuru Kenyatta https://bbc.in/3JRl5Zg

#Russia is seeking to use the Black Sea grain deal to strengthen its position/influence in #Africa. Given the levels of food inflation in Africa and that it only received 17% of shipments from the original deal, this is likely to gain notable traction on the continent

The EastAfrican @The_EastAfrican

Russia laid out conditions on Monday for agreeing to any further extension of the Black Sea grain deal, and President Vladimir Putin said that Moscow could send free grain to African countries if those conditions were not met.
https://bit.ly/3lrkjtW

#Nigeria: A significant result for both #Tinubu and #Obi, ensuring that the president-elect maintains his influence over Lagos, whilst indicating that the Labour Party is struggling to covert Obi's popularity into votes for its governorship candidates #NigerianElections2023

Reuters Africa @ReutersAfrica

The governor of Lagos easily won re-election in low turn-out local voting, a victory for Nigeria's ruling party just weeks after the commercial capital backed the opposition in a disputed presidential election. https://www.reuters.com/world/africa/lagos-governor-re-elected-victory-nigeria-ruling-party-2023-03-19/

Privacy Policy • Cookie Policy • Terms and conditions • Contact us

Website by Creative Clinic