Irwin Barkan, Chief Executive Officer (CEO) of BGI LLC, a U.S-based real estate firm currently developing commercial properties in West Africa, says Africa is becoming an attractive market for mall developers and grocery retailers.
He said that Africa’s middle-class was growing, noting that Nigeria, a country with a population of over 170 million, has the region’s largest middle-class outside South Africa.
He said that East Africa is the fastest growing region of the continent.
Mr. Irwin Barkan disclosed this at ‘RECon Middle East & North Africa 2013,’ a networking and educational conference jointly organized by the Middle East Council of Shopping Centres (MECSC) and the International Council of Shopping Centers (ICSC) between 24 and 26 November, this year in Dubai.
According to Mr Barkan, the future of retail “is going to be in sub-Saharan Africa” describing Kenya as “the powerhouse of the region.”
West Africa, he noted, was growing with Ghana and Nigeria leading the way.
He said South African retailer, Shoprite was targeting Ethiopia and Kenya, while Massmart Holdings, South Africa’s biggest food and household-goods wholesaler, was looking at an acquisition in Kenya.
Owing to the foregoing, he said consumer spending now accounts for more than 60 per cent of Africa’s GDP.
Touching on North Africa, the BGI LLC CEO said that Morocco’s retail scene was also developing, explaining that the hypermarket chain, Carrefour opened its 40th market in Casablanca in October and has 30 supermarkets and 10 hypermarkets with plans to expand.
He said that the country can boasts of Morocco Mall, one of Africa’s largest shopping centres.
The region has also seen more mall projects, including Atterbury Property Holdings’ West Hills Malls in Ghana’s capital Accra and BGI’s Mallam Junction Mall.
“However, the situation in other areas of the North Africa region, including Libya, Tunisia, Algeria and Egypt has a dampening effect on investor appetite,” Mr Barkan added.
According to the April edition of the World Bank’s Africa Pulse report, economic growth in sub-Saharan Africa was expected to reach more than 5 per cent on average between 2013 and 2015, making Africa one of the fastest growing regions in the world.
The conference brought together shopping centre industry professionals, retailers, management and consulting companies, architects and design companies, entertainment and leisure companies under one roof for three days to network, make deals and explore new business opportunities.
