Housing Demand in Africa will Create $1.4trn Investment Opportunity by 2050
Africa presents a unique and unparalleled investment opportunity, according to Akinwumi Adesina, President of the African Development Bank (AfDB). Speaking at the opening of the 2024 Africa Investment Forum (AIF) Market Days in Rabat, Morocco, Adesina highlighted the continent's immense potential in key sectors such as food, housing, and infrastructure.
A Growing Market with Vast Potential
Adesina emphasized Africa's economic and demographic transformations, citing data that underscores its growing importance in the global economy.
The African food market is projected to reach $1 trillion by 2030, driven by increasing demand for agricultural products and value-added food industries.
Infrastructure demand across the continent creates an annual investment opportunity of at least $170 billion, encompassing energy, transport, digital infrastructure, water, and sanitation.
Housing demand is anticipated to rise significantly, presenting a $1.4 trillion investment prospect as urbanization and population growth accelerate.
“Africa presents such a unique investment opportunity which cannot be ignored. Don’t just believe me, believe the data,” Adesina remarked, underscoring that Africa's population will double to 2.4 billion by 2050, equaling the combined population of China and India today.
A Rising Global Influence
Adesina also referred to a recent New York Times analysis, which highlights the continent's growing influence, noting that by 2050, one in every four people globally will be African. This demographic shift is expected to drive unprecedented demand for consumer goods, digital services, and infrastructure, solidifying Africa’s role as a key growth engine for the world economy.
“Population is destiny,” Adesina stated, affirming Africa’s position as a prime market for investors looking to tap into its expanding consumer base and developmental needs.
Investments in Infrastructure and Green Initiatives
Infrastructure development remains a critical focus for Africa's economic advancement. Adesina, who also chairs Africa50, a leading infrastructure investment platform, shared updates on the platform’s progress:
The Africa Infrastructure Acceleration Fund has achieved its first financial close, raising $500 million from 15 institutional investors.
The Alliance for Green Infrastructure in Africa (AGIA), supported by the G7, aims to mobilize $10 billion for sustainable and green infrastructure projects on the continent.
The AfDB's issuance of hybrid capital—the first of its kind by a multilateral development bank—raised $750 million and was oversubscribed eight times, demonstrating strong investor confidence in Africa.
Private Capital’s Growing Interest in Africa
Private equity interest in Africa is on the rise. According to the 2024 Africa Private Equity Capital Association survey, 85% of Limited Partners intend to increase their private capital allocations to Africa over the next two years. Additionally, 52% believe Africa will become more attractive for private capital than other emerging markets within five years.
However, Adesina noted that this growing attractiveness is already evident today. Investors are increasingly recognizing Africa's potential as a dynamic and competitive investment destination.
Conclusion: A Call to Action
Adesina’s address at the AIF Market Days was a clarion call for global investors to seize the opportunities Africa offers. From its expanding markets in food and housing to its infrastructure and green energy initiatives, the continent is poised to deliver significant returns while addressing critical development needs.
Africa’s transformation is not a distant vision—it is happening now, making it an investment destination that cannot be overlooked.