Land is perhaps one of the oldest and most rudimentary forms of assets to ever exist since private property exists. Prior to the existence of money and financial instruments such as stocks, bonds, mutual funds…etc., land and real estate were the major sources of wealth. This is because back then, the world was living through the agricultural revolution. During that time, in almost every continent, landowners were the wealthiest people in society. And this statement especially holds true in Africa, which is a continent that still relies on agriculture as its main source of income and economic activity.
Land remains a great asset to own. It remains one of the most attractive investments, especially in a place like the African continent. Indeed, the African continent is extremely rich in land and African lands are extremely wealthy in raw materials. This is one of the reasons why the Black continent has always been a lucrative place for European nations to invest and exploit African soil. There has been recently a rising demand for land in Africa. This is due to the accelerated development of real estate. However, factors such as increasing population and urbanization in major regions have driven up the demand and value of land. As a matter of fact, Africa’s population is estimated to reach 2.5 billion by the year 2050, and it will be the youngest continent in the world. Moreover, the rapid growth of Africa’s population, paired with an expanding middle class, could lead to a colossal increase in demand for diverse real estate.
Land has always been considered a safe investment because it is far less risky than stocks. Land is an attractive investment because it is a tangible asset like real estate. It cannot disappear or lose its value all of the sudden the way a company would. A company could go bankrupt anytime while this cannot happen with land ownership. Purchasing land is a great investment choice for investors with long-term goals. The value of land takes time to appreciate.
It is even more lucrative to own land in Africa because access to land on that continent is much easier than before. Major real estate industries have developed over the past ten years to make it much more feasible for both local and foreign investors to buy and access property. Furthermore, the African continent is becoming a global hub. For example, in 2000, Africa had 8% of the world’s international air traffic. By 2017, that number had increased to 22%. This trend will no longer be limited to air travel, but it will expand to other aspects of global commerce. Countries such as Rwanda, Kenya, Ghana, Côte d’Ivoire, Ethiopia, and Mauritius have built a reputation for being the best countries to do business in Africa. And these countries, with many southern African, do have one of the highest property rights indexes. This highlights the safety of people’s investments as well as the upheld of the rule of law.
The African continent has dramatically changed over the years. Back then the continent had an ill reputation for political instability, corruption, coup d’états, and endless civil wars. Today, the African continent is a new continent, a continent of economic opportunities where most of its resources remain unexplored and unexploited.