Good evening all. I’d like to learn more about investing in land outside the USA. Looking to connect with developers/investors in Africa.
I buy and sell land here in the southeast region(US). Aside from real estate deals, I’d like to focus on land development long term. I recently obtained my heavy equipment certification(excavator/buldozer). with new construction prep in mind for a long term model.
I’d love to connect with anyone developing land and or building new construction(Africa), Thanks in advance!
Hi Aaron, is there any specific area in Africa you’re interested in? Do you have experience with any kinds of transactions in any African countries? As a South African expat, my first reaction is that quality on the ground partners will be essential to such an endeavor.
I was gonna ask the same question as @Geertsema - which African country are we talking about?
I have to imagine it will make a big difference, whether you’re looking in a country with a stable, functioning government or one that is being overthrown from one year to the next, or without a government at all.
Whatever the answer is, it would be interesting to hear more about what you discover. I’m sure there is great opportunity in other parts of the world that we US investors are blind to.
Thanks for responding Amy & Bertus, I really appreciate you taking the time. To be honest I’m uncertain about a particular market, still doing research on my end. I’ve heard and read good things about South Africa. If anything, I’d like to explore an area that’s currently growing(new construction - residential/commercial). I also want to learn about the purchasing process.
‘‘Akon city’’ seems interesting. I’ve read that the first phase was set to start in 2023 and is expected to be completed in 2028. The entire project should be done in 2035, curious to see how it turns out. I’m also interested to get your take as a whole, would love to hear about any of your previous or current deals/experiences. Thanks again in advance for all the insight and potential guidance.
If it’s something where there is a sustainable reason, desire and passion for the project(s) my advice would be to begin a period of research and networking, including travel to spend time in the place and really get to know some folks. The way things get done in other countries, in particularly the developing world is not the way it happens here. Availability and accuracy of information would be a big hurdle to what we’re used to here in the US. Project timelines and finding all the equipment and skilled labor, and expecting it all the be continuously available through the project would be a big risk. There’s also a lot of risk that a new government or even local politician can substantially change/affect/cancel the planned project outcome.
Just look at South Africa today as they are going through elections - it’s complicated to plan for what will happen next, what the Rand (SA currency) will be worth tomorrow, etc. All in all, a lot of risk that can be mitigated only by local knowledge and knowing the right people, also in the local jurisdiction/government.
Comparing such investment opportunities to opportunities available domestically, it’s pretty tough to take on such risk without substantial promising returns, i.e. it has to make A LOT of sense to take on all these risks, and best to do so with figuring out how to mitigate the risks and make the deal more predictable.
That said, foreign investors have been investing in Africa for many years and I’m sure for some of those investments and projects have been worthwhile, but guaranteed there were many losses too.
One avenue is to figure out a way to partner on existing deals. Find good partners and learn how to get it done alongside those who already broke down barriers.
I feel your curiosity & dreams of potential, it’s a wide open continent with lots of opportunity!