Housing Demand in Africa will Create $1.4trn Investment Opportunity by 2050 – AfDB

AfDB President Akinwumi Adesina

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Housing Demand in Africa will Create $1.4trn Investment Opportunity by 2050 – AfDB

President of African Development Bank (AfDB), Akinwumi Adesina, says Africa presents a unique investment opportunity that cannot be ignored.

Adesina spoke at the opening ceremony of the 2024 Africa Investment Forum (AIF) Market Days on Wednesday in Rabat, Morocco.

Highlighting Africa’s potential, he said the continent’s food market is expected to grow to $1 trillion by 2030, and demand for infrastructure presents an annual investment opportunity of at least $170 billion.

“Africa presents such a unique investment opportunity which cannot be ignored. Don’t just believe me, believe the data,” he said.

“The New York Times said that the world is becoming more African, as 1 out of 4 people in the world by 2050 will be African.

“The continent’s population will double to reach 2.4 billion by 2050. That will be the same size as the combined population of China and India today.

“Population is destiny. Africa will brim with unparalleled demand for consumer goods and services, digital services, as well as housing, with the demand for housing expected to rise to an investment opportunity of $1.4 trillion.

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“The size of Africa’s food and agriculture market will rise to $1 trillion by 2030. Demand for infrastructure presents an annual investment opportunity of at least $170 billion a year, from energy to transport, digital infrastructure, water and sanitation.”

Adesina, who also chairs Africa50, an infrastructure investment platform, said the Africa infrastructure acceleration fund launched by the platform, has reached its first financial close with $500 million from 15 institutional investors.

“A survey of asset managers by the Africa Private Equity Capital Association Survey for 2024 shows that 85% of Limited Partners expect to increase allocation of private capital in the next two years,” he said.

“Also, 52% of Limited Partners expect that private capital in Africa will be more attractive than other emerging markets in five years’ time.

“We are seeing that attractiveness today, not five years.

“The Alliance for Green Infrastructure (AGIA) launched by the African Development Bank has garnered support of the G7, to mobilise $10 billion for investment in green infrastructure in Africa.

“The African Development Bank’s launch of hybrid capital, the first ever by a multilateral development bank, with an issuance of $750 million was oversubscribed 8 times by $6 billion, a remarkable demonstration of investors’ confidence.”