There are opportunities for real estate developments in the African healthcare, agriculture and education sectors, Knight Frank United Arab Emirates researcher Tilda Mwai told delegates at the Africa Property Investment (API) Summit, in Johannesburg, on Wednesday.
Increasing household income, the advancing technological revolution and an increase of financial flows on the continent will drive growth in these sectors, resulting in increased demand for new property developments.
In the healthcare sector, Mwai noted that Africa currently shoulders 25% of the global disease burden, yet accounts for only 1% of global health expenditure.
The private sector continues to be a dominant player in the sector, accounting for 50% of investment. Despite this, there is still an existing $66-billilion gap in healthcare, Mwai informed.
To close this healthcare gap on the continent, a number of initiatives and policies are being pursued across the continent.
For real estate participants looking to capitalise on the opportunities in Africa's healthcare sector, Mwai said there was a healthcare deficiency across the entire continent, but especially in Nigeria, Egypt, South Africa, Tanzania and Uganda.
Meanwhile, in the agricultural sector, demand is expected to also grow considerably. As with healthcare, countries on the continent are showcasing a commitment in terms of policies and investment codes to drive agriculture on the continent.
Mwai said the sector was experiencing increased interest, especially from private companies. However, she noted that State-owned companies, as well as Middle Eastern participants were increasingly looking at investing in agriculture on the continent to secure food security in their region.
Lastly, the number of young people on the continent is growing and is likely to reach one-billion by 2050. Unemployment levels are considerably high, and the continent currently has a $39-billion financial gap in education.
As with healthcare and agriculture, there are many policies and investment drivers in various countries to plug this gap.
There is also increased interest in e-learning, which should also contribute to growing real estate demand, as companies invest in meeting the demands of that sector.