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African economies easily rank among the most
resilient in the world. In the middle of the 2009 global economic recession, Africa was
the only region apart from Asia that grew positively, at about 2%.
The continent’s growth has been on an upward trajectory ever since then- 4.5%
in 2010 and 5.0% in 2011.
And it will get even better in 2012. Africa is
favorably positioned to become the 2nd fastest growing region in the
world, and according to
the International Monetary Fund (IMF), economic growth across the 54 countries
of the continent will hover around 6% in 2012.
Africa is becoming an increasingly attractive
hub for foreign investors in light of various economic, political and social
reforms that are sweeping through the continent, resulting in a much improved
business environment conducive for foreign direct investment. Apart from that,
there is widespread development of critical social and physical infrastructure,
and there is an increasing pool of well-educated, English-speaking,
enterprising workers in most countries across the continent.
There is also a significant boost in the
spending power of Africans. According to the African Development Bank, Africa’s
fast-emerging middle class is now comprised of over 300 million people,
and analysts from the McKinsey Global Institute estimate that
general consumer spending across the continent will hover past the $1 trillion
mark next year.
If you’re a foreign investor who has yet to
make a foray into Africa, now is the time to step in and capture a share of
Africa’s $1 trillion opportunity in 2012.
As one of the world's fastest growing economic
regions it desperately needs quality real estate. And, by seeking to
address Africa's challenges, investors and business men have to now channel their
effort to one of the fastest growing area-Real Estate as a long term investment
for development.
By 2040, Africa is projected to be home to one
in five of the planet's young people and the world's largest working-age
population, therefore government needs to stem into investing into the industry
for future benefits.
Long-term investment – many
people like the idea of an investment that can fund them in their retirement.
Rental housing is one sector that rarely decreases in price, making it a good
potential option for long-term investment.
Private real estate can provide significant and
important benefits for a mixed-asset investment portfolio. Well-chosen
portfolios have delivered attractive investment performance over long-term
holding periods, providing high returns that have fallen between those of bonds
and equities in the long term
The obvious benefit that comes
from real estate investing comes from the money that can be made. Those who
have managed to buy a home for a small amount, and sell it for a large amount
see the largest profit. People will fix houses, and add to houses simply to get
as much profit as possible out of the market. This benefit is generally
unmatched by many other investments; you can make a lot of money by simply
investing in a home. While it is hard work, it can reap large monetary
benefits.
By: Samuel Mantey
Email: sammyoo3@yahoo.com
Twitter: SamuelMantey
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