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WESTERN
SAHARA
TUNISIA
GAMBIA
GUINEA-BISSAU
SIERRA LEONE
LIBERIA
ERITREA
EQUATORIAL
GUINEA
MADAGASCAR
SWAZILAND
dTZ | In Situ
21
COnSTruCTIOn/FIT-OuT rISk
Given market immaturity, existing buildings are often unlikely
to meet corporate building standards. Whilst it is understood
by most that raised floors and suspended ceilings may not be
expected as standard, government regimes sometimes do not
provide or enforce building regulations, and structural integrity
and infrastructure can be an issue. Prep work is absolutely
critical.
case in point: Port harcourt, Lagos
•
The challenge in nigeria is that 80% of building materials are
imported and the import process and time delays need to be
considered in the project programme
•
due to procurement restrictions, contracts must be divided
into sub-contracts.
heAlTh And SAFeTy
Whilst some locations in Africa are notoriously dangerous,
applying this to the whole continent is a misconception. however,
especially in frontier and emerging markets where no corporate
activity exists, wealth polarisation has been known to cause
obvious problems. This presents a challenge not only in the
sense of protecting corporate staff, but also mitigating this risk
by encouraging local skills transfer and employment of local
resources.
CApITAl MArkeT SCepTICISM
For design and build schemes, raising equity and de-risking
schemes often requires third party investment to drive
occupation. however, institutional or private equity investors still
treat Africa with caution due to the associated risks that we have
explored in this article.
case in point: Investor developer Audit
•
dTZ recently conducted an audit of its investor/developer
contacts internationally to ascertain who is currently willing
to invest in a design and build project in a remote African
geography
•
Whilst some responses were positive, some traditional
institutions still showed a lack of interest, with only 4 out of 25
investors giving a positive response.
STAGGerInG rATe OF ChAnGe
Some African markets are seeing a rate of growth which is
staggering by global standards. Governance procedure has to
be swift and seamless to compete with local occupiers. often,
entrepreneurs will take leases quickly to make a profitable sub-
let/sale if they discover corporate interest in a site.
case in Point: The demand for good quality commercial office
space in Lagos, nigeria and Luanda, Angola.
liAm NicHolls
Account manager, Global
corporate services
+44 (0)20 3296 3350
Geoff kRuGeR
director, African Projects
+27 (0)11 274 2300
