With every crisis there looms the word ‘opportunity’—and this could well describe the situation facing Africa at the moment. If we look at the figures currently, you will notice that about 40% of those living in Sub-Saharan Africa are settled in urban areas. That’s about 1 billion people. Moreover, this figure is set to double in 25 years.
So, how can a mass increase in urbanisation, which is set around a scene of poor infrastructure and even poverty, lead one to think there is investment opportunity?
Let’s take a closer look at the current situation among African urban cities:
Cities in all countries grow as the flock of urbanisation increases. However, without a proper infrastructure to manage and control this influx of job seekers, the city is bound to collapse or run into major housing, water and sanitation as well as other problems.
However, with investment in infrastructure leaders, the room to grow can be managed and sustainable to improve the country’s GDP as well as increase the investor’s ROI.
As the population in the cities mounts, the need for transportation increases. Without a proper and effective public transport system as well as underdeveloped roads, the matter of normal business will not be successful and will lead to a failure in the urbanisation process.
However, great opportunity lies for those companies that desire to build roads and improve city transport for the masses. Road building is lucrative and will be a business deal no building company would dare turn down.
· Capital Investment
Africa’s public capital investment is not where it should be. With a growing demand for public services as well as the abovementioned requirements to boost a city’s economy, the investment of capital needs to be increased if we want to see an improvement in the city life of those 1 billion people.
Therefore, it is necessary for the financial sector to become a player in the investment of capital for the requirements needed to fund investment projects. Investors themselves can also benefit from the loaning of monies over a long-term contract with Sub-Saharan urban cities.
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