Are Investors in West Africa shifting Focus?

With global and regional capital continuing to flow into West African Real Estate, investors are starting to diversify their funds across the region and move away from the previous Nigeria and Ghana bias.

Following from the first market correction seen in 20 years, crippling Central Bank debt and the pegging of the Naira, the reaction to Nigeria’s (in President Buhari’s words) ‘suddenly poor’ status has been fight or flight. Some, like Novare, Old Mutual, Johnson & Johnson and Pick ‘n Pay sticking to their guns and continuing to make gains, while others, like Sun International, Tiger Brands and Truworths, choosing to take their business elsewhere.

“The Nigerian real estate investment market is experiencing a unique combination of the first economic recession in 25 years, a rapidly devaluing currency and a retail and commercial development boom. This has led to an oversupply of prime real estate at a time when tenant demand has fallen to its lowest levels in over a decade, Broll has been at the forefront in advising, leasing and marketing for a large proportion of international investors and developers. We are actively working with our clients to come up with innovative property leasing solutions by providing tenant concessions while ensuring the long-term financial viability of the asset,” says Broll Nigeria CEO, Bolaji Edu.

“While the present crisis may seem insurmountable, Nigeria’s experience is no more than the growing pains of developing economy as experienced in South America as well as Eastern Europe. Investors are still withholding from Nigeria as they wait for the storm to pass,” argues Edu.

But where are investors going?

In the midst of Nigeria’s struggles, Ghana, is slowly gaining ground again. Along with the IMF’s approval on a further $116.2 million disbursement, there is a positive shift in Ghana ( due to improvements in power supply, exchange rates and a stabilization in inflation. With a stable growth outlook, business views are at their most favorable levels in years. CEO of AttAfrica, Kevin Teeroovengadum, weighs in:

“Ghana had a tough 2 years spanning over 2014/15 and seem to have to reached the bottom of the cycle during the 1st semester of 2016. With the government having agreed a deal with the IMF in 2015, we’ve seen an improvement in government’s fiscal discipline, stabilisation of the Cedi, availability of dollars and less frequent cuts in power supply. All eyes are now on the presidential elections in December 2016. The general mood of the people on the streets seem to be better than last year which we can see in a rise in foot traffic and trading density at all our malls. A number of retailers are now coming back to request for new opportunities outside Accra and we’ve seen a significant rise in the leasing target of our retail development in Kumasi over the last quarter.”

Francophone nations are also gaining a place in the spotlight. While they have no doubt been developing at a rapid rate for some time, in these times, their relative stability is becoming a significant drawcard for investors in the West African region, who are starting to view West Africa more broadly than just the bright lights of Lagos. In particular, the Ivory Coast is currying some serious favour following their new title as ‘Africa’s fastest growing economy’, and a number of reforms which have resulted in impressive economic growth.

“A return to political stability, sustained infrastructure investment and stable regional currency have made Côte d’Ivoire the darling of international investors and operators among Francophone West African countries. Senegal also continues to attract investment, with smaller, more focused pockets of growth in other countries in the region. Many players are approaching these markets with a strong investment and development mandate. European or South African firms lead the pack, though we are noting growing interest from Ghanaian and Nigerian firms and investors. Côte d’Ivoire remains a frontier market, with opportunities across all asset classes as well as specific challenges: lack of transparency and low levels of local expertise are among these, but can be overcome by new entrants through in-depth knowledge of the local market,” explains Ivan Cornet, Managing Partner of Latitude Five.

This year’s West African Property Investment Summit (WAPI) ( aims to equip investors and other stakeholders with the necessary information and insight from top speakers and industry leaders, in order to encourage a fruitful way forward.

Beyond the possible success of starting afresh in new territory, investors also have the opportunity to learn from past experience. There are plenty of resources detailing how to navigate deals in countries like Senegal and Ivory Coast; investors also need to be prepared to do the hard work of understanding these new spaces. On the ground market research, understanding of consumer patterns as well as socio-political concerns all form part of doing effective due diligence.

From discussions around the shift in investor focus, the rapidly evolving retail sector, to navigating through negative economic climates in Nigeria and Ghana, the discussions at WAPI position stakeholders in the eye of the West African storm, with the necessary tools to help them weather it.

Top West African deals to watch

Despite the shifts in the West African real estate environment, the region is still seeing some big bill deals. Kfir Rusin, General Manager of API events breaks down the biggest investments.

  1. Old Mutual Investment Group and the Nigerian Sovereign Investment Authority raise US$500 million towards a Nigerian real estate fund
  2. RMB Westport launches $250 Million Fund for Nigeria, Ghana, Angola and the Ivory Coast
  3. Actis raises over $500m for new African real estate fund
  4. Novare Africa Property Fund II announced its final close at the end of June 2016, having raised $350 million for investment.
  5. Eris Property Group unveil plans for Agbara Industrial Estate in Lagos Nigeria
  6. West Africa’s largest mixed-use development, The Exchange” project at Airport City in Accra launched be Mabani Holdings Ghana Limited, in partnership with Actis LLP
  7. Novare’s $82.8m 22,000m2 Lekki mall began trading at the end of August 2016
  8. RMB Westport’s 10,800m2 Circle Mall began trading at the end of 2015
  9. Churchgate launch 20,000m2 World Trade Centre in Abuja
  10. CFAO and Carrefour open the Playce Marcory Mall, Ivory Coast, in December 2015
  11. Carlson Rezidor adds Ghana to its growing portfolio with the introduction of the Radisson Blu Hotel Accra Airport, The Exchange with 207 keys.
  12. Hilton Worldwide announced its plans to open a 350 guestroom and suite hotel at the Lagos Murtala Muhammed International Airport, Nigeria.


The West African Property Summit (WAPI) ( takes place in Accra, Ghana on 16 – 17 November. This two-day conference will be a deep dive into issues affecting the West African real estate market, and a start for discussion and solutions building. The summit tackles discussions around development, private equity, finance and economics, with insights from some of the best minds in real estate investment today.

In addition to the experts in this release, speakers for the summit also include:

Kojo Addo-Kufuor
Managing Director, Ghana Home Loans

Funke Okubadejo
Director: Real Estate, Actis Real Estate

Jan Van Zyl
Head of Property Development, Novare

Kofi Asomaning
Managing Director, Capri Investments

Cheick Sanankoua
Managing Partner, HC Capital

Lasse Ristolainen
Development Director: Sub-Saharan Africa, Hilton

Source: West African Property Summit (WAPI).

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