In a strategic move to shield their investments from the volatility of local currencies and the escalating risks posed by political and environmental factors, Kenyan property investors, along with their counterparts across Africa, are increasingly turning their attention to dollar-denominated green projects. The latest findings from the Knight Frank Africa report for the year 2022/2023 shed light on this burgeoning trend, revealing a noteworthy shift towards green-rated buildings and projects offering returns in US dollars.
The driving force behind this shift lies in growing apprehensions about the consequences of climate change, political instability, and rising interest rates on the economies of the continent. Investors are actively diversifying their portfolios, recognizing the resilience offered by green-rated assets against these uncertainties.
A prominent aspect of this trend is the surge in the development of green-rated buildings across Africa, with a current count of 785 such structures. Notably, South Africa stands out as a leader in this green revolution, hosting the majority of these environmentally conscious projects. Analysts predict that this momentum will persist as investors increasingly respond to the expanding demand for sustainable real estate.
The digital transformation sweeping across Africa, accelerated by the challenges posed by the COVID-19 pandemic, has catalyzed a surge in demand for internet services and data centers. This emerging landscape presents a lucrative investment opportunity for developers and investors seeking to capitalize on the burgeoning data center sector.
As revealed by the Knight Frank report, the demand for data centers is projected to continue its upward trajectory across Africa as the continent embraces digital technologies. This anticipated trend not only signifies a prosperous avenue for investors but is also expected to drive job creation and spur economic growth in the region.
In light of these developments, Kenyan investors are advised to explore the opportunities presented by green projects and data centers. These sectors not only demonstrate resilience to economic fluctuations but also align with the escalating demand for sustainability and robust digital infrastructure in the evolving African landscape.
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By: Delino Gayweh
Serrari Financial Analyst
November 17, 2023
