West Africa is a land of opportunity for locals and foreigners. With a wealth of resources, the region has a bright future and the world is beginning to realize its potential. According to the World Economic Forum (WEF), more than half of the world’s fastest-growing economies are in Africa. Investors with the foresight to make the first bold moves could stand to benefit from West Africa’s growth story in the long term.
If you’re asking yourself, “Where to invest my money in Africa,” read on to discover the best tips and pointers on where to put your money and get great returns.
West Africa: An Opportunity for Farsighted Investors
Despite so many tempting investment opportunities in West Africa, Western investors have blown hot and cold. After the COVID-19 pandemic halted the upward trajectory of many ascendant West African economies like Nigeria and Ghana, they bounced back in 2021.
That year, West Africa’s foreign direct investment (FDI) rose 48%, hitting a high of $14 billion, according to data from the United Nations Conference for Trade and Development (UNCTAD). Unfortunately, many of those gains were lost in 2022 as UNCTAD’s data logged a 38% fall, bringing West Africa’s total FDI back down to $9 billion.
While this see-sawing from foreign investors is nothing new, what’s interesting to note is the progress of West African countries like Nigeria, Ghana, and Sierra Leone. They are now much more conducive markets for foreign investors, and business-minded governments have taken measures to remove barriers to FDI. One example is the region’s collective GDP which has grown consistently in the last five years, going from $105 billion in the early 2000s to $659 billion in 2020.
Many foreign investors have already decided that they want to be part of West Africa’s upcoming success. If you were wondering when to buy into the West African growth story, that time is now!
Key Sectors Driving Investment Growth
For foreigners who aren’t based in the region, choosing where to invest in Africa should be a carefully considered decision. West Africa is comprised of a collection of countries that include some of the healthiest and largest economies on the African continent as well as some of the poorest. This disparity, coupled with the historically inconsistent inflow of FDI to the region, means your money can go a lot further than it would in a Western nation. All you have to do is make smart choices and identify the right sectors.
West Africa’s abundance of natural resources means foreign investors have a range of options to choose from. Here are some of the key sectors that are most popular among foreign investors.
1. Oil and Gas
There are vast untapped reserves of natural oil and gas throughout Africa. In fact, the continent is believed to hold as much as 20% of the world’s total reserves of fossil fuels. Like the rest of the continent, West Africa is also rich in gas reserves. This makes it a potential world leader for energy generation in the future.
2. Agriculture
Many investment analysts will point to the vast reserves of fossil fuels and precious minerals as the obvious areas of interest in African economies. However, you shouldn’t overlook the second West African industry with tremendous growth potential: agriculture. Most of the world’s uncultivated, arable land is located in Africa (60%, to be precise, according to a WEF report from 2016).
In the coming decades, West Africa has the potential to become a bread basket not just for its own residents, but other nations as well. Backing West Africa’s farmers in the near future is a smart investment decision.
3. Infrastructure Development
West African infrastructure will be a profitable investment in the coming years. The entire infrastructure sector is ripe for an overhaul. Currently, West African countries have some of the longest road transportation times and highest transportation costs in the world.
However, measures like the World Trade Organization’s (WTO) Trade Facilitation Agreement (TFA), the Economic Community of West African States’ (ECOWAS) Customs Code, and other regulations will give the sector a boost in the next several years. As recently as 2020, West Africa recorded the highest amount of infrastructure investment inflow in the entire continent, valued at $22.3 billion.
4. Real Estate and Construction
Africa is the world’s youngest continent, with nearly 60% of its population aged 25 years or younger. It’s expected that Africa’s population will hit two billion people by 2050. As one of the continent’s most densely populated regions, West Africa is in line to witness a huge demographic spike.
All these people are going to need somewhere to live. That doesn’t even account for the many foreign nationals who will settle in West Africa for its business and investment opportunities. Hence, a thriving real estate sector is shaping up to cater to these audiences.
Real Estate Investment Trusts (REITs) are a popular choice for foreigners investing in real estate. Alternatively, you can own a property outright by buying a home from construction companies like Jobomax Homes, a trusted provider of affordable yet luxurious residences for West African expats.
Top Investment Destinations in West Africa
West Africa is one of the most exciting investment destinations in the whole continent due to the emerging economies in the region. Let’s take a quick look at some of the most promising ones.
1. Nigeria
As Africa’s largest economy, Nigeria is ripe for investment. It is an ideal place for expats who are looking to build a home in the region. Affordable, eco-friendly houses in Nigeria utilize local materials, natural ventilation, solar shading, and renewable energy sources.
Jobomax Homes builds residences with sustainability in mind. Contact us for an estimate on how much green homes cost in Nigeria.
2. Ghana
The second-largest economy in West Africa attracts considerable foreign investment. Much of this capital flows toward the nation’s capital, Accra.
Buyers who are considering acquiring a home in Accra don’t need to look any further than Appolonia City. Located just beyond the hustle of the urban center, this planned housing complex uses solar energy and comes with a clean land certificate. Reach out to Jobomax Homes to learn more.
3. Sierra Leone
Sierra Leone’s national economy and GDP has been on a consistent upward trajectory since 2002. Rich in natural resources like minerals, many expats have relocated to Sierra Leone as more companies decide to do business in the country.
The Springs at Newton is the ideal address for foreign expats in Sierra Leone. Located in the suburbs of the capital, Freetown, this residential estate is close to nature. Buy a home at The Springs and live surrounded by greenery.
The Rise of Eco-Friendly Housing Developments
West Africa’s growing population is going to need somewhere to stay. The World Bank estimated that 250,000 houses need to be built in West Africa each year to meet the demands of demographic growth and urbanization. This rapid development can have drastic consequences for the environment, but thankfully, there is a long tradition of sustainable construction in the region.
There are abundant renewable energy sources like sunlight, flowing water, and wind. Additionally, West Africa possesses an architectural heritage of building with green, sustainable mediums like mud bricks, adobe, wattle and thatch while using locally sourced materials like laterite and granite. As stated by the United Nations Environment Program (UNEP), West Africa has the potential to set a global standard for eco-friendly housing in the future.
Green building projects, an area of focus for Jobomax Homes’ residential developments, are building upscale residences in West Africa that have minimal impact on the surrounding environment. It’s a glimpse into the next generation of sustainable construction in West Africa
Relocate to West Africa, Watch Your Investments Grow
If you’re the type of investor who prefers to witness their money in action up close, moving to West Africa is easier than ever. Visit the Jobomax Homes website to learn more about how you can own your dream home in one of these vibrant nations. You’ll find that West Africa is ready to welcome you!
