LIVING IN IBADAN #NIGERIA – LAND & PROPERTY PRICES IN IBADAN (REAL ESTATE IN IBADAN)
- April 11, 2021
- Real Estate Business
Hi guys,
Real estate in #Ibadan is the next thing. The land mass of the…
1) 2nd largest econmy in africa
– 351.4 billion USD (2019)
– over 400 companys making more than 1 bn usd anually more than half is in south afri
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2) Structured Real Estate Market
– real estate boom/ opportunities
– proper laws as government takes it as priority
– high property rental rates hence higher margins
3) Gateway to Sub-Saharan Africa
access to europ and america
sea port and air port
southern african development comunity with 15 countries
4) A Healthy Banking System
South Africa has mature risk control, foreign exchange control, and settlement systems, which has greatly aided international investment and banking. Net interest margins for the country’s four largest banks have recently been in the 3.5% to 4.5% range, nowhere near as high as what you might find in frontier African countries but healthy nonetheless.
Furthermore, loan-to-deposit ratios in the banking sector are healthy at around 90% on average for the big banks. By contrast, loan-to-deposit ratios of mature European banks are generally over 100% and US banks, not eager to lend, are currently at 80%. One might conclude that the South African banking sector is mature from an infrastructure standpoint and healthy from a financial standpoint. Coupled with the growth of financial services and the broadening reach through micro credit and mobile banking, South Africa’s financial sector would seem an attractive destination for investment dollars.
5. An Emerging Middle Class
The consumer industries comprise the third pillar of the South African economy. Ultimately, these opportunities all lead to the same place: the emergence of an African middle class. Therefore, consumer companies are at the core of a successful Pan-African investment strategy.
South Africa has several publicly traded companies that are currently focused on the African consumer. Most known perhaps is Shoprite Holdings (SRHGY), a supermarket chain that operates close to 400 stores in 16 countries throughout Africa. Its economies of scale allow it to be a price leader and it has branched into value added services such as ticket sales, pharmacies, liquor stores, and financial services. Though a leader, other companies are sure to follow.
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