Africa – An Emerging Powerhouse

The retail property sector in Africa has seen a flurry of activity in recent years and moving forward this looks set to continue. In the coming months the region will play host to an ever-growing number of retail, leisure and entertainment projects across the continent as Africa’s emerging economy presents exciting opportunities to global businesses for expansion and growth.

Even with all this upcoming development, Africa is a largely untapped continent. At the same time, the race is on to develop prime real estate in selected countries. With a fast-growing urban population profile, of which many of the shoppers are young and upcoming professionals, the buying power is increasing. This is the viewpoint of Gateway Real Estate Africa in their article ‘Invest in Retail Property Developments Across Africa’.

The article continues by saying that many multinational corporations are also looking toward finding office space in growing cities. With such, more buying power and more high-tech endeavours are coming to the continent. Together with this, comes the demand for safe, high-end shopping spaces. Retailers are looking for space in modern shopping malls.

Developers can thus expect high occupancy rates for their retail property developments across the continent.

Countries that have gained the interest of international companies range from Kenya to Angola, Egypt, Ghana, Morocco, Mauritius, Nigeria and Mozambique to name a few. Prime office and retail space is still limited while the demand for such is rising.

Over the next few pages, RLI will take a look at a selection of retail real estate projects from around the continent that highlight the increased development of the shopping centre model in Africa and how it is beginning to challenge the major players in the industry.

Projects Across the Continent
Maspero Mall is an upcoming unique destination for retail and lifestyle experiences in the heart of Cairo by developers City Edge Developments. Situated in Maspero Triangle, Maspero Mall is an icon of downtown Cairo offering unforgettable shopping experiences, delicious cuisines and a variety of distractions that will leave you entertained. Drawing on a heritage that stretches back thousands of years, Maspero Mall seeks to mark a new era of modern experiences to delight future generations ahead.

Maspero Mall is designed to offer extraordinary experiences in the heart of Cairo. Its wide range of retail and lifestyle attractions spread out across 28 commercial units spanning 75sq m to 1,057sq m. Welcoming thousands of visitors from this year, the commercial podium provides plenty of parking spaces, helping guests move around easily, leaving no room for traffic jams. As a thriving commercial destination, Maspero Mall continues to ensure memorable experiences for everyone through state-of-the-art services and facilities.

Another upcoming project by City Edge Developments is Mamsha AlMaqsad, a unique mixed-use project within AlMaqsad Residences, with units customized for all tastes. The multifunctional units offer a variety of units tailored to suit your area preferences whether it is for retail, offices, or clinics use. Introducing an integrated life with such variety, the mixed use strip will be the first commercial hub in R3Planned to be the bustling hub of AlMaqsad, Mamsha AlMaqsad interconnects with AlMaqsad districts as well as the New Capital. The mixed-use strip will be the central go-to location for homeowners for retail, offices, clinics and other amenities near prominent landmarks such as the Valley of Embassies, the Capital Business District, the Smart City and the Airport.

Festival Avenue, the new expansion of Cairo Festival City Mall being developed by Al-Futtaim Real Estate Group is set to open in 2023 and will redefine the Egyptian retail market with an unparalleled shopping and lifestyle experience. Spanning over 45,000sq m, Festival Avenue will soon take Cairo Festival City Mall’s unique experience to the next level of luxury and fashion. Set to be Cairo’s ultimate fashion forward destination welcoming international renowned brands, this top-of-the-line extension will open its doors to a variety of 80 first-to-market luxury fashion & jewellery brands that will call Festival Avenue their first address in Egypt. Festival Avenue will also offer an entertainment destination for all ages and an assortment of international restaurants with indoor and alfresco dining experience.

Tarboul Industrial City by developer GV Group will occupy a space of 109 million square metres when completed, serving the purpose of sustainable production in a multi-core industrial city that combines unprecedented mix of industrial activities, modern services, logistic facilities, administrative buildings, commercial outlets, workforce housing and social services. The industrial city is said to be aligned with Egypt’s 2030 Vision across various aspects including creating integrated and sustainable ecosystems, improving the quality of life and living standards of Egyptians, creating a competitive and diversified economy and more.

Nile Business City is set to become the second tallest skyscraper in Egypt, the tallest vertical city in Africa and the third tallest tower in Africa when it opens its doors by developer Nile Developments. Within this new city will be Nile City Center, a large tourist and entertainment mall. It is located directly in the middle of the Green River on the northern Bin Zayed axis, with an area of 60,000sq m and a facade width of 200m on the Green River. Three main entrances to the mall have been designed on the Green River, which is considered one of the most important features of Nile City Center Mall, which provides its customers with everything they could wish for and more. A confirmed opening date has not yet been confirmed.

Sonae Sierra has consolidated its presence in Morocco with the management of a new shopping centre, Aeria Mall, developed by Anfa Realties, which promises to be a landmark in the new heart of Casablanca (Casa Anfa) in Morocco, opened its doors on 1 March. With 25,000sq m of Gross Leasable Area (GLA), Aeria Mall is part of the Casa Anfa mixed-use project, which also includes offices and a residential component, which will create more than 3,000 jobs in the region. Aeria Mall is a unique, experiential destination, featuring original concepts and impressive entertainment – the ideal place to relax and enjoy quality time with family and friends. Sierra will be responsible for managing this asset, which will enrich the services available in this new space and improve the consumer experience. Aeria Mall is a proximity shopping centre, distinguished by 93 stores, including a Marjane supermarket and national and international brand stores in the world of ready-to-wear, fashion accessories, beauty, furniture and much more. Aeria Mall also offers a unique Food Hall, with restaurants and different areas, as well as a cinema and a gym. The shopping centre represents a balanced space between retail and leisure.

At over 100,000sq m, Le Carrousel Mall innovates as it offers a wide variety of places in which to live, work and play as a mixed-use destination on the shoreline of Rabat. A project which intends to benefit a wide community, Le Carrousel links residential, retail, hospitality and entertainment by integrating a business hotel, private homes, a waterfront promenade and the first outdoor mall with over 30,000sq m of shops, cafés and entertainment facilities. In collaboration with its newly appointed leasing management company, AMS AFRICA, developer IMKAN Maroc has started to roll out its mall merchandising plan to ensure the site becomes a dynamic flagship shopping and lifestyle destination when it opens in 2023.

Set to open in 2025, Al-Futtaim Malls looks ahead to Zenata Mall opening in Morocco with 120,000sq m of gross leasable area. With three million visitors every year, Zenata Mall is anchored by a 26,000sq m IKEA and is now poised to become the largest mall in North Africa. Over the past year, the teams at Al Futtaim, Marjane Holding, Sonae Sierra and Société d’Aménagement Zenata (SAZ) have collaborated to develop an innovative retail, marketing and branding strategy to position Zenata Mall as Morocco’s most attractive shopping, family, leisure destination with a differentiated Food Hall. Zenata Mall, located within the innovative, ecologically healthy Zenata Eco-City, is slated to blend the contemporary and traditional zones with an 8,350sq m hypermarket, a 10,000sq m leisure and entertainment zone, 5,500sq m multiplex Cinema, a first to Morocco Food Hall and a comprehensive portfolio of over 300 stores. With roughly 15 per cent of Morocco’s total population concentrated in the immediate catchment area of Zenata Eco-City, the mall is set to place the development on the retail investment map.

Developer Retail Africa is currently working on a host of retail projects across Africa including the 6,500sq m Madelief Centre which is due to open in the middle of this year. Found in the heart of Pretoria North, Madelief Shopping Centre will be easily accessible to residents in Rietfontein, Villieria, Wonderboom and Pretoria Central. With the De Onderstepoort Private Nature reserve being only 7.6km from the centre, this convenience centre will be favoured by the locals. Madelief Shopping Centre is anchored by Pick ’n Pay and Arrie Nel Pharmacy. The centre will be located within close proximity to many schools, including Gerrit Maritz High School being only 500m away and Pretoria North High School being 2.9km away. Other local communities include Sable Estates and Waterberry Estates located close to the centre.

Eko Atlantic is a new coastal city being built on Victoria Island adjacent to Lagos, Nigeria, to solve the chronic shortage of real estate in the world’s fastest-growing megacity. Under development by South Energyx Nigeria Limited, it is a focal point for investors capitalising on rich development growth based on massive demand – and a gateway to emerging markets of the continent. Eko Mall is a commercial shopping mall planned to be built on the Eko Atlantic Economic City, the planned city of Lagos State, Nigeria, being constructed on land reclaimed from the Atlantic Ocean. The city, which is still under development, is anticipated to be approximately 10sq km in size and will house at least 250,000 people, with an additional 150,000 commuting in daily. This vital development space is being provided by Eko Atlantic, supported by robust modern infrastructure. Over 107,000sq m of net leasable area is being dedicated to the Eko Atlantic Mall. It will be the largest shopping center in the whole of West Africa. The mall will include a vast array of amenities and entertainment, with ample on-site parking, giving shoppers access to premium retail with abundant lifestyle options including: Department stores, kids’ entertainment, food courts, shops and cinemas.

The Boardwalk Mall is a 24,000sq m shopping centre built at the Boardwalk precinct in Port Elizabeth, South Africa. The development was carried out by property developer Flanagan & Gerard Group and real estate investor Moolman Group in partnership with Emfuleni Resorts. Emfuleni Resorts is a subsidiary of Sun International, a hotels, gaming and entertainment group in South Africa. The new mall was built in two phases with a $36.2M investment. Construction of the Boardwalk mall began in May 2021. The first phase of development was completed in May 2021. The mall was officially opened in September 2022, marking the completion of the second phase. The project generated up to 2,000 jobs in its construction phase and was expected to create 1,500 permanent positions upon completion. The development procured goods and services worth a total of $21M, thereby contributing to the local economy. The Boardwalk Mall features a mix of retail outlets, including two supermarkets, a speciality food store and two pharmacies. It also houses major banks, restaurants, fast food units, coffee shops, health and beauty, electronics, home and décor, gifting, sports and speciality shops, as well as everyday services and essential fashion stores.

Another scheme by Retail Africa is the beautiful upcoming Mall of Maun is a creative architectural design, which will be a delight for any shopper or tourist looking for variety, convenience and a beautiful shopping destination. Situated in North-West District of Botswana, the centre offers an abundance of free open parking which is easily accessible. With 3,438sq m of retail space the Mall of Maun is anchored by Checkers, Checkers Liquor, Woolworths and Edgars with other all-time favourites like RocoMamas, Cotton On, Mr Price and Ackermans. The centre is located within a close proximity to the Maun Lodge, Tsolido Community Jr Secondary School, Maun Environmental Educational Centre, Maun General Hospital and Botswana Meat Commission.

Eris Property Group has secured the forecourt of the Cape Town Station on a long-term lease from Passenger Rail Agency of South Africa (PRASA) and completely reimagined this landmark location into a vibrant new precinct spanning 2.4ha. The first phase of the development will provide 6,700sq m of modern retail space, a 3,085-bed purpose-built student accommodation facility and a new world-class public square. The retail portion of the precinct, named Cape Station, will be anchored by 1,600sq m Spar, Tops and a 600sq m Clicks with various other national tenants secured to ensure that the local community will have their every retail need met under one roof. The development will also include a new world-class public square to serve as a landscaped urban garden with artwork and seating to encourage tourist engagement and dwell time.

Work has started on at least three new mall projects in Limpopo, with the 11,500sq m Tshakhuma Corner breaking ground in early October. The mall, developed by McCormick Property Development and designed by MDS Architecture, is valued at R200 million and is set for completion in October 2023, alongside two other developments in the area – the 13,500sq m Vuwani Mall and Bungeni Mall. According to the developers, Tshakhuma Corner will bring much-needed retail capacity to the Vhembe district of Limpopo and is the 72nd retail development by McCormick. McCormick is a specialist in rural retail development in South Africa and is part of the Exemplar REITail group, which owns and manages many of these new builds. Tshakhuma Corner will be an enclosed single-level development with ample parking. Some of the tenants of the new development include Shoprite, Capitec Bank, Standard Bank, seven of the Foschini Group’s stores, five stores from Pepkor Holdings and four stores from the Mr Price Group.