From Business Day Online

The African continent is becoming a modern-day mecca for consumer industries in search of higher yield, and an increased demand for more modern retail formats and shopping centers is the result, reports Business Day South Africa.

In recent years, Zambia, Ghana, Kenya and Nigeria have seen a wave of retail construction activity. The Palms in Lekki, Lagos, regarded as Nigeria’s first modern shopping center, was opened in 2006, while Accra Mall, the first of its type in Ghana, opened in 2008.

Urbanization and rising affluence are fueling a boom in fast-growing cities, with a rising middle class clamoring for high-quality goods and services.

Peter Welborn, head of Africa at Knight Frank, a London-based property consultancy, said property investors and developers looking for emerging-market opportunities are increasing external investment in Africa, particularly as the growth markets of the past decade such as Asia-Pacific and Central and Eastern Europe mature and the level of returns they offer begins to fall.

“Understanding the nuances of Africa’s many markets – from governance issues, land-ownership rights and common currency, to cultural diversity and consumer-buying patterns – is critical for investors,” he said yesterday. “Many African countries remain challenging places in which to do business, but for those able to steer their way through African property markets, there is the promise of high returns and significant growth potential.”

Read more at businessdayonline.com