“If you want to go fast, go alone. If you want to go far, go together”

The West Africa real estate market is a mixed bag. Some markets have become powerhouses, global shocks regardless. Others are flickers of light, dancing in the wind. Occupying 3.4% of the region’s habitable area and 5.2% of the world population West Africa’s annual GDP is an estimated $725bn – 0.75% of the global economy. In the context of local and foreign investment activity, there are opportunities worthy of consideration. And being considered they are.

Whether it’s Dangote’s $19Bn refinery in Lagos, Nigeria (5th largest in the world upon completion), the Wilmotte & Associés Architects-designed UN House in Diamniadio, Senegal or the 22,700sqm Niger Ministry of Finance building located in Niamey, these projects appear to have reclassified investment managers into two classes: Those who understand the region – and those who are trying to. It appears that there may be more to the region than sunset savannahs and military regalia. Driving the demand for industrial real estate are the African continent’s leaders in globally in- demand commodities. Benin Republic is Africa’s largest cotton producer; Côte d’Ivoire holds the title for Cocoa and Ghana for Gold.

The median age in West Africa is 18.2 years with Niger Republic having the lowest median age of 14.8 years. Nigeria and Mauritania both had presidential elections where the ruling parties – the APC and the El Insaf respectively retained their hold. Liberia and Sierra Leone also have elections this year. As of our going to print, the Senegalese President is attempting to circumvent the constitution and contest a third term in 2024. Amidst increasing criticism of its military presence in the region, France withdrew its forces from Mali in Q3 2022, ending a 9-year expedition to combat armed groups linked to al-Qaeda. Some argue that the intervention failed to bring about lasting stability. Ghana was ranked the most peaceful country in West Africa and 2nd most peaceful in Africa by the Global Peace Index Report.

The West African Economic and Monetary Union (UEMOA) and the Economic Community of West African States (ECOWAS) dominate the region’s capital markets. The Bourse Régionale des Valeurs Mobilières (BRVM), the regional stock exchange for UEMOA, is located in Abidjan, Côte d’Ivoire. The BRVM is a wholly automated stock exchange that operates in eight West African nations, including Benin Republic, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo. With a market capitalisation of over $25bn as of 2021, the BRVM has experienced strong growth. But there have been dips in performance as Q4 2022 saw Ghana default on its debt. The nation reached a $3bn bailout agreement with the IMF.