01

Northern Africa

1. Algeria

　　Algeria's industry remains largely concentrated in Algiers and Oran. Hydrocarbon-related processing plants dominate, while cement, carpet and chemical plants are also prominent. Industrial activity still accounts for around 60% of Algeria's GDP and many European manufacturers have established operations here. The industrial building stock generally consists of older general-purpose warehousing and a relatively small number of modern, high-bay logistics buildings.

2. Egypt

　　Since the establishment of the Industrial Development Authority (IDA) in 2005, there has been a significant attraction of new industrial activity to invest in Egypt. In Cairo, this has been concentrated in the cities of October 6th and Ramadan 10th. Government land can be purchased for US$15 - US$25 per square meter, about half the usual price of other commercial land. Investors should apply to the IDA to allocate land in new industrial zones.

3. Libya

　　Much of Libya's industrial activity involves oil and gas. Promoting private sector industrialization and economic diversification is seen as a development priority and calls for the enhancement of planned industrial zones. Private industrial development will also be encouraged through free trade zones.

4. Morocco

　　Morocco has more than 75 industrial zones, however most of the industrial equipment is old and does not meet the safety standards of modern buildings. Casablanca has the largest industrial market in the country, which used to be centered on AïnSebaâ, but new areas on the outskirts of the city are becoming increasingly important, including Bouskoura and SidiMaârouf.

5. Tunisia

　　Tunisia's manufacturing sector is a major source of economic growth and income, accounting for approximately 70% of total exports in 2011. There are a number of industrial estates around Tunis, with the main new areas usually located on the southern outskirts of the city. Many areas further away from central Tunisia have a lot of relatively cheap available land. This includes places benefiting from the market drive generated by the new airport and port development in Enfidha. Older industrial areas around Tunis airport (Charguia) are still popular, but usually contain only smaller units.

02

Eastern Africa

1. Ethiopia

Ethiopia's industrial sector has just been established and mainly consists of local light industrial activities. Industrial estates are also starting to emerge, in areas such as Akaki Kality. The current typical rent is US$3 to US$4 per square meter per month.

2. Kenya

Kenya has not experienced highly speculative industrial development in the past, and most businesses tend to own their own property. However, this market is starting to pop up now, especially along Nairobi's Mombasa Road. Rents are very low and absorption is slow, so it will be a while before the rental market becomes a strong part of the Kenyan real estate market. Some developers are looking for suitable purpose-built logistics parks, which could allow light industrial manufacturers to relocate from traditional industrial centers to new locations around Nairobi, taking better advantage of the new road infrastructure.

3. Rwanda

Rwanda's industrial market is still in its infancy, especially in Kigali, which is still in the owner-occupied stage. About 60%-70% of all manufactured goods are imported from Kenya and Uganda. However, as part of the Kigali Master Plan, the government has proposed at its own expense to relocate the Industrial Development Center from Gikondo to the Special Economic Zone in Nyarugunga District near Makassar, where Gikondo will be preserved as a wetland. The relocation will take some time, but is expected to lead to growth in Kigali's industrial market.

4. South Sudan

Most of Juba's industrial activity is concentrated in Konyo Konyo and the vicinity of the port. Konyo Konyo is also home to a number of hotels offering camping style accommodation along the White Nile. With a small population, an investment climate that is not conducive to foreign investment, and extremely challenging logistical conditions in Juba, it seems unlikely that the South Sudanese market will attract significant international corporate activity.

5. Sudan

The industrial market in Khartoum is very limited, with most units being owner-occupied. Most industrial real estate is not located in the city center, but is usually located on the opposite side of the CBD. The main industrial areas are located in the north and east of the city. The country's largest industrial complex, Judd Industrial City, is located on the west bank of the Blue Nile.

6. Tanzania

Tanzania's industrial sector continues to be owner-led and largely focused on the provision of warehousing space and light industrial activities. Millennium Business Park remains the only major industrial development in Dar es Salaam, but the industrial areas at Nyerere and Mandela Roads have new equipment thanks to the redevelopment of old warehouses.

7. Uganda

Kampala's main industrial area is the Kampala Industrial and Commercial Park, located about 15 kilometers east of the Kampala-Jinja Expressway. The government is encouraging factories and industries that have acquired land plots to relocate to business parks or risk losing their land. Its growth has driven a critical mass in the area and a steady rise in industrial land values along arterial roads. Many large manufacturers such as Riley Packaging, APDL and some Chinese companies have built state-of-the-art factories on large amounts of land to meet their future expansion plans.

03

Southern Africa

1. Angola

　　Sonils OSC is located north of Luanda city center and is the main industrial area. Other concentrations of industrial property are mainly in the east of Viana and south of Benfica. Viana's Special Economic Zone is located near the planned international airport and is designed to accommodate 73 factories. There is a strong demand for warehousing and manufacturing space due to the expansion of industries such as oil, diamonds, brewing, textiles and construction.

2. Botswana

　　The majority of Botswana's industrial activity is in Gaborone and industrial locations are being used to compensate for the lack of office space, which has led to inflated rental prices. Zoning is being applied more rigorously and the nature of the market is changing as office space increases. A small number of new buildings, mainly owner occupied, can be found within 10km of the city center and on the route to the airport.

3. Madagascar

　　Madagascar's main industrial area is located south of the city of Antananarivo. To the south of the city center there is a mixed use area with low quality buildings, Malagasy businesses and airlines. About 5 kilometers south of the city center, Zone Industrielle Forello is home to some heavy industry. There is also a small amount of light industrial activity south of the airport.

4. Malawi

　　Malawi's industrial sector continues to face serious challenges due to low production capacity as a result of power outages. This has led to layoffs and the closure of some businesses. The current decline in the level of industrial activity is reflected in the weakening demand for industrial property and has led to depressed rental levels and real estate values. Recent economic reforms aimed at boosting local industry are still underway and these are expected to stimulate demand for logistics and warehouse properties.

5. Mauritius

　　The Government of Mauritius continues to promote non-traditional industries. New growth areas include fisheries, light industrial products, printing and publishing, high precision plastics and pharmaceutical products. Key industrial locations include Plaine Lauzun, Les Pailles, Phoenix, Coromandel, Riche Terre, the port area and La Tour Koenig.

6. Namibia

　　Manufacturing activity in Windhoek is fairly limited and the industrial real estate market is mainly focused on the provision of warehouse space. Warehouses are concentrated in industrial areas in the south of the city and in the north. Several large industrial projects are planned elsewhere in Namibia, most of which are related to the country's growing uranium industry. The Vision Industrial Park is near Swakopmund.

7. South Africa

　　While recent economic uncertainty may dampen short-term growth prospects, the South African industrial market continues to exhibit broadly positive fundamentals, such as falling vacancy rates and rising capital values in some areas. However, the balance of power in the industrial market remains largely dependent on the consumer, despite declining supply and the increasing willingness of investors to take on speculative developments in anticipation of a return to economic growth. On a positive note, upcoming spending on infrastructure projects is expected to boost employment and help stimulate consumer demand.

8. Zambia

　　Developers are increasingly interested in investing in Zambia's industrial zones as the industrial market is under-supplied and under-serviced to meet the requirements of modern international companies. The development of new facilities in key areas will help secure new industries and manufacturing. Developers are mainly focusing on Lusaka as it is seen as an entry point from South Africa into the center of the sub-Saharan market.

9. Zimbabwe

　　Demand for industrial space in Zimbabwe has declined in recent years as the country has become a consumer of imported goods rather than a manufacturer. Vacancy rates have increased and rents have fallen. In the current difficult economic conditions, tenants are at a higher risk of survival. Industrial investment is considered to be the least attractive of all sectors and recent sales have been exclusively for owned operations.

04

Central Africa

1. Cameroon

Douala is an important industrial center and one of the main ports in West Africa, serving some of the Central African landlocked countries. Industrial properties are generally located near the port of Bonabéri, where there is a major cement industry. The central industry in the east of the city is mainly the automobile industrial zone, and there is also the country's largest brewery - SABC. Because it is landlocked and has no port, Yaounde is a relatively unimportant industrial location. It's more of a regional distribution center (mainly for coffee, cocoa, coconut, sugar cane, lumber, rubber) than a manufacturing area.

2. Central Africa

Industrial activity in Central Africa is concentrated in Bangui and the ports along the river. Development tends to extend to the west and south of the city rather than to the shallow east. Bangui has no international manufacturing. Factories have been the target of looting in the past, and the massive UCATEX factory near the airport has been looted and abandoned for about a decade.

3. Chad

N'Djamena has low industrial demand and generally the refurbishment of old unrenovated buildings or abandoned buildings is satisfactory. Owner occupations are common. There is an industrial zone in Farcha, west of N'Djamena, where a large number of multinational oil companies are based. Chinese company Sunshine International has plans to build a new industrial zone in Djarmaya at a cost of US$150 million.

4. Democratic Republic of the Congo

The main industrial areas of Kinshasa are located near the Route des Poids Lourds and Kingabwa, adjacent to the Congo River and around the port. It mainly consists of older equipment, mostly for own use and often broken down. There are no modern industrial zones and poor infrastructure creates difficulties in transportation and logistics. There are potential challenges related to ownership. However, there is an increasing demand for warehousing and storage space to support industrial expansion, and with the construction of new and planned road facilities, more areas should be opened up for modern warehouse development.

5. Equatorial Guinea

The industrial market in Equatorial Guinea is almost entirely self-owned and mainly involves international companies in the oil and construction industries. In Malabo, industrial activity is mainly concentrated in the south and west of the city. There is also much development activity on Luba Island, about 45km south of Malabo, where there is a deep water port.

05

Western Africa

1. Côte d'Ivoire

In the surrounding area of Abidjan and in dense residential areas such as Marcory and Yopougon, local industrial activity prevails. The most important manufacturing bases are located in the Treshville and Freedy industrial areas, and the petrochemical, cement, and food manufacturing industries are distributed in this area. One of the most important international businesses is Unilever, which can be found on Boulevard de Vridi.

2. Ghana

Ghana's factories used to be mainly located in Accra, and the industrial area in the eastern part of the city near the port of Tema. Rising land prices in central Accra leading to higher rental prices will increase pressure on centrally located heavy industries to relocate to lower cost locations on the outskirts of Accra, which will help free up land for Re-development. Currently, the rent for a gold warehouse is about US$8/square meter per month.

3. Mali

Mali's industrial market will continue to revolve around local traders, as there are currently no international manufacturers in Bamako. The main industrial area is located to the east of the commercial center where a new bridge, Bamako's third across the Niger River, is improving traffic and reducing traffic congestion. The bridge is one of the largest Chinese aid projects in West Africa. Residents of the industrial zone include many government organizations and pharmaceutical companies.

4. Mauritania

The industrial market in Nouakchott is mainly composed of local companies. In addition to some oil and gas supply businesses, there are a number of industries (including heavy industries such as cement production) facing the port.

5. Nigeria

Multinational corporations are increasingly interested in investing in Nigeria. Companies such as Procter & Gamble, GSK, Nestlé, Diageo and SABMiller have invested heavily in new production facilities in the Nigerian market. Some multinationals are establishing secondary manufacturing hubs outside Lagos state, especially in southeastern Nigeria. However, the development of manufacturing companies has been hampered by the chronic lack of electricity supply in Nigeria, which has led to the departure of some major manufacturers, and the lack of electricity continues to hinder investors from investing in Nigeria.

6. Senegal

Senegal has no established industrial markets and so far few international players have used the country as a manufacturing or distribution destination. The entire Dakar region is home to a number of small local industrial enterprises, many of which are involved in food manufacturing. However, the focus of large commerce is on the port, which is also one of the main outlets along the Route de Rufisque. The high degree of owner-occupation has prevented the vigorous development of the rental market, which in turn has inhibited the speculative development of the industrial sector.

7. Sierra Leone

The development of Sierra Leone's urban economy is mainly centered on its port and Queen Elizabeth II Wharf. Freetown has the largest natural harbor in Africa. Most of the city's industrial development is to the east of its main port, and the area around Kisi, where the massive oil terminal is located. The Wellington industrial area is about 5 kilometers east of the city. In general, industrial equipment is of poor quality, most of which is accessed from unpaved roads. Owner occupancy is a common feature of this market. Industries in Sierra Leone include food and beverage processing, fish packing, rice processing and petroleum processing.

Summary

The rise of African industry has brought great opportunities and challenges to the continent, and at the same time has injected new vitality into the development of the global economy. With all parties working together, African industry will continue to move towards a more prosperous and sustainable future.