Africa’s big cities offer investors hope

Johannesburg – Africa’s biggest economies have been hammered by the collapse in commodity prices over the past 18 months, but there are still investment bright spots to be found.

In cities such as Lagos, Nairobi, Accra, Kinshasa and Johannesburg, growth remains robust and investors are prospering in the retail, financial services, technology and construction sectors. This means investors can now readjust their strategy for Africa. Instead of taking a view on the continent as a whole, or choosing one country over another, they can seize opportunities city by city.

Sub-Saharan Africa is urbanising faster than anywhere else in the world and city dwellers have more money to spend.

“In the current economic environment, investors want areas where success is proven, growth is strong and will remain strong. Big African cities give you that,” said Jacob Kholi, a partner at Abraaj, a private equity firm with $9bn (R143bn) under management.

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