Interview with: Kofi Smith, Managing Member, Consult Three Architects, a sponsor company at the marcus evans Infrastructure & Property Development MEA Summit 2014, discusses the development opportunities in Africa
Interview with: Kofi Smith, Managing Member, Consult Three Architects, a sponsor company at the marcus evans Infrastructure & Property Development MEA Summit 2014, discusses the development opportunities in Africa.
Interview with: Kofi Smith, Managing Member, Consult Three Architects, a sponsor company at the marcus evans Infrastructure & Property Development MEA Summit 2014, discusses the development opportunities in Africa
1. Building the Last Frontier:
The Infrastructure & Property Development Opportunities in Africa
mixed use housing/retail developments.
Rural retail developments have been a
big area of focus in South Africa for
example, as the country tries to rebuild
previously disadvantaged communities
to balance with that of urban areas.
Interview with:
Kofi Smith,
Managing Member, Consult Three
Architects
“Africa is the last frontier - the very last so it has very attractive growth
prospects, yet many infrastructure
and property investors are not
capitalising on what it offers as they are
too sceptical of the political landscape,”
says Kofi Smith, Managing Member,
Consult
Three
Architects.
Development profit margins can be
anything between 100 - 200 per cent in
some places, he adds.
Consult Three Architects is a sponsor
company that will be present at the
marcus evans Infrastructure &
Property Development MEA Summit
2014, in Dubai, UAE.
Why is the infrastructure and
property development industry in
Africa lagging behind?
The main issue is and will always be
equity. Government agencies are not
spending a lot of funds on building basic
infrastructure thus delaying development processes, but a small portion of
the market, the private sector, has been
doing very well investing in real estate.
As
th e
las t
front i er,
what
opportunities does Africa offer?
The housing sector is very attractive
due to economic growth and high influx
of multinational companies. There is a
huge demand for affordable housing and
middle income housing, governments
are spending millions of dollars on
Which markets and sectors would
you specifically point investors to?
South Sudan and Congo Brazzaville
needs to be rebuilt from scratch.
Does it make them attractive for
developers?
Ghana is really booming and politically
stable. Most West African countries are
stable, so there has been an influx of
multinational companies. However, if
you compare Ghana and South Africa,
the cost to develop versus the cost of
sale, you will find a big difference. In
South Africa the profit margin of the
typical middle-income housing development is around the region of 20 - 30 per
cent - that would be considered
successful. In Ghana, the profit margin
can be between 100 - 200 per cent.
Ghana does not have much of a credit
system in place, but investors who go in
liquid can make a lot of money. The
market is very right for office and highend housing developments. Retail is
also doing well, but getting land in the
right location costs a fortune. Demand is
so high that it almost does not make the
developments feasible.
South Sudan and Congo Brazzaville will
need to be rebuilt from scratch, though
South Sudan has not been so stable
recently and we have been advised to
put all investments on hold until it
stabilises. I believe now is the perfect
time for one to engage in opportunities
in Congo Brazzaville as it has become
very stable.
In East Africa, Rwanda is doing well
economically, while Nigeria is saturated
but also has major opportunities due to
the population growth and demand.
What local experience or knowledge
is required?
Investors need to understand the
terrain they want to enter. They must
form local partnerships to understand
each market better, avoid delays in
various approvals and take advantage of
the established networks they have in
place.
This is where Consult Three Architects’
value proposition lies, where we have
established great networks of contacts
and decision makers in specific regions
to allow successful development
opportunities
They must also understand the political
landscape of the country and align
themselves to new policies. For
example, for the next 40 years, the
South African government has decided
to implement developments within
specific areas of the economy.
Investors
need to
understand
the terrain
they want
to enter
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About the Infrastructure & Property Development MEA
Summit 2014
professional
breakthrough
Offering much more than any conference, exhibition or trade show, this exclusive
meeting will bring together esteemed industry thought leaders and solution
innovations.
providers to a highly focused and interactive networking event. The Summit
includes presentations on performing a delicate balancing act by adopting a superior
level of quality, sustainability and convenience within allocated budgets, and
validating development plans to showcase the booming market and deliver profitgenerating products.
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Please note that the Summit is a
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participants
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the
strictly
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About Consult Three Architects
Consult Three Architects (C3) is an Architectural, Urban Design and Project Management Company based in South Africa. C3 is
founded and composed of Architects and Project Managers with offices in most major centers of the country and with strategic
associations continentally and internationally.
C3 has the support of a large team of highly qualified and experienced professionals of diverse talents and considerable levels of
management skills which we believe is the fundamental criteria for the successful delivery of every commission that they
undertake.
At C3 we package real estate development opportunities throughout Africa through careful research, feasibility and viability and
present to prospective investors for consideration
C3 commits itself to work in partnership with the right people from the outset to assess the scope of the project, address the risk,
establish clear objectives and implement the strategy for achieving the defined objectives.
www.consult3architects.co.za
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To view the web version of this interview, please click here: www.ipdsummit.com/KofiSmith