Covid-19, the global health emergency that has forced world economy on its knees, has amplified need for more investment in infrastructure, improvements in logistics, and the embrace of broader digital technology in Nigeria and other African countries.
In Nigeria, particularly, at no other time than the Covid-19 induced movement restrictions and lockdown era, was the lack of basic infrastructure such as electricity and water more challenging and more pronounced.
Housing was a bigger issue. “This pandemic has exposed the extent of homelessness in Africa’s most populous nation and that is posing a major challenge to the government in its efforts at containing further spread of the deadly virus. I hope some lessons have been learnt,” noted Festus Adeboyo, President, Housing Development Advocacy Network (HDAN).
The impact of the pandemic on this sector is such that, despite various governments recovery-related financing support, industrial, retail and office markets continue to be severely challenged by appeals for decreasing of rentals or rental payment holidays, reviewing of occupancy space, closures of small and medium range retailers, high vacancy levels, and diminished product and services sales.
These challenges are reflected in a COVID-19 Africa Report in which Broll Property Intel provides a broad summary of sector-specific market overviews for the retail, office and industrial sectors as at the end of June 2020.
The report which highlights experiences in nine African countries including Nigeria, Ghana, South Africa among others, also reflects individual country’s restrictions and lockdown protocols, government aid packages, and an economic overview.
It presents the nine countries as a collective, representing the challenges and opportunities confronted by this resilient continent during the COVID-19 crisis.
At individual level, the countries are responding differently to the pandemic according to their environment, experiences and strength of economies. While Nigeria is seeing retail market recovery despite approximately only 50% of retailers trading, South African companies may begin to review their office space requirement.
Again, while Nigeria is experiencing an uptick in fast moving consumer goods (FMCG) in the warehouse and logistics sector, rental growth in South Africa is expected to slow even further in the industrial sector.
Similarly, while some Ghanaian businesses are operating on a shift basis for staff with others embracing working from home, Uganda, with no COVID-19-related deaths, as at the end June, embraces flexible office spaces and looking to increase digital work-flows.
These are major challenges which are, however, not considered by the Broll Property Group as insurmountable, provided quality data is factored into decision-making and local stakeholders are engaged to share their experiences and plans.
Malcolm Horne, CEO of Broll Property Group, emphasizes that, regardless of the pandemic, Africa needs to continue on its development path. “We need to improve on our liaisons and partnerships and collectively find solutions to issues that the entire continent faces. All information and data is therefore crucial, valuable, and essential to ensure a sustainable and thriving real estate sector,” he advised.
