The majority of Africa’s industrial markets suffer from a lack of high grade infrastructure and the instability of many of the continent’s economies. Many commercial centres lack the sufficient industrial/logistics stock to attract tenants and a high level of caution is exercised by international investors.
Botswana’s economy has stalled after several decades of growth fuelled by the mining industry. Occupier demand for industrial property has suffered as a result, leading to downward pressure on rents in Gaborone which has been exacerbated by an oversupply of space in the market. Botswana’s second city, Francistown, has a limited availability of industrial stock. Alternatives exist well outside the city centre, but tenants are wary of locating too far out due to security and labour transportation concerns.
Demand for industrial space in Zimbabwe has been tempered by small enterprises, largely family run, established in response to economic hardships and the withdrawal of many major occupiers. Interest from large scale operators in Malawi is also limited as a number of important manufacturers have ceased operations over the last decade.
In East Africa strong localised demand exists, notably in Kampala and Dar es Salaam, with the creation of the East African Community Trade Area encompassing Kenya, Tanzania and Uganda aiding growth in the region.
The second general election in June 1999 marked a smooth political transition and was the tonic needed to consolidate the democratic drive and boost international investor confidence in the country. With the continuing trend of decentralisation taking place since the 1980s, the traditional downtown CBDs in the main cities have experienced a severe downturn, with Johannesburg hit the hardest. A number of major corporates are backing up organisations such as Business Against Crime and the Johannesburg Inner City Development Forum. find here properties price.