Page 59 - April 2020

New Horizons With a rapidly developing economy, emerging technologies and a booming

population, Africa’s retail landscape is changing for the better. Here, RLI
For Growth takes a look at some of the emerging trends that are shaping the future of

African retail and highlights some of the major projects recently completed
and some of the major developments due to finish in the coming months.

ith the fastest rate of urbanisation in the The emerging middle-class consumer in Africa is becoming Castle Gate occupies a prime site adjacent to the N1, modern multi-use development. Also being developed by
world, Africa has more than 40 per cent increasingly brand conscious and consumer spending is still Van Ryneveld Ave and Solomon Mahlangu Dr. This central Atterbury Property, this modern mixed-use development
of its population currently living in urban mostly concentrated in the informal sector of roadside stalls location features easy access to and superb visibility from all will feature 115,000sq m of offices, 90,000sq m of
W centres. By 2030, Africa’s 18 largest cities and town markets. However, in East Africa there is already a surrounding roads. The new road infrastructure upgrades residential space with 1,100 units, 40,000sq m of space is
will have a combined spending power of $1.3tn and the discernible shift from informal to formal retail. will result in improved private and public transport in the set aside for a medical centre and there will be a Planet
country will have as many cities with one million inhabitants Research from Compliant IA shows that as retail moves area, benefiting all tenants in Castle Gate. The new precinct Fitness Gym and a hotel alongside the 23,000sq m of retail
as North America. from informal to formal, companies like Walmart and The has been designed for optimal use by commercial, retail and space. The retail element of the project is due to open on
Africa is on track to become the continent with the world’s Carrefour Group are expanding their reach across the residential tenants. Castle Gate is a truly world-class and the 24 September.
youngest population. Approximately 70 per cent of Africans continent. Walmart bought a 51 per cent stake in South
are presently under the age of 30 and youth account for African retailer Massmart Holdings Ltd. in 2010. Despite some
around 20 per cent of the population. 53 per cent of African setbacks and leadership changes, Walmart intends to expand
income earners are between 16 – 34 years old, which is an the brand with 47 new stores between 2019 and 2021.
age group known for their awareness of and eagerness to The African Development Bank estimates there will be
consume new products. 2.1 trillion USD in consumer spending up for grabs by 2025.
A country with a growing population and larger cities is Services brands like food and beverage, telecom and banking
translating into a large opportunity for retail. According to should be paying attention.
‘Retail in Africa: Interesting Facts and Emerging Trends’ by Opened in September last year by Indigo Property, Mall Of Sousse
Compliant IA, wholesale and retail are already the third provides proof of being a player in another vision of commercial
largest contributor to Nigeria’s GDP. Kenya has seen a 54 real estate to invent a new experience for consumers in the Sousse
per cent growth in its number of stores over the last five region, and at the same time revitalise the development of an offer
years while South Africa has almost 2,000 shopping malls to the vanguard of new consumer trends in retail. Innovating and
covering over 24 million square metres. With a surge of inventing new models to serve consumers is at the heart of this
investment in technology and infrastructure, Johannesburg is ambitious quest for a better future for the country. The project is a
poised to become Africa’s hippest city. The newly revitalised full place for shopping experiences in indoor and outdoor leisure
neighbourhood of Maboneng boasts trendy restaurants, spaces, a landmark good living for the inhabitants of the area and
luxury hotels and galleries. tourists from the seaside town and the whole catchment.

THE ARCH
Umhlanga, Durban, South Africa
Developer: Multiply Property Holdings

Africa

APRIL 2020 RETAIL & LEISURE INTERNATIONAL 59