The African Continental Free Trade Agreement (AfCFTA) is looking to transform Africa’s defragmented markets by bringing a host of opportunities to facilitate inter-regional trade and deepen economic integration for participating countries. The extensive impact of the AfCFTA is expected to cut through the African commercial property market, especially within the Industrial and Logistics segment, which should benefit from the prospect of greater cross-border trade.
Though many other components including adequate power, sound regulatory environment, and functional infrastructure are required for an industrial property market to thrive, this agreement should inspire some cautious optimism among key market participants. In 2017, JLL estimated that demand for African industrial property was c.15million m2. When placed alongside Africa’s $130 – $170 annual infrastructure deficit as outlined by the AfDB, it demonstrates the long road ahead.
Check out the infographic below to see a few active African industrial market players: