Kampala is ranked among the fastest growing cities in Africa; this is according to the latest Knight Frank’s Shopping Africa Report.
According to the report, Kampala has over 128,000 square metres of shopping space in the pipeline.
This growth has been attributed to growth in the country’s middle class.
Judy Rugasira Kyanda, Country Manager at Knight Frank Uganda told CNBC Africa that the most important thing was the demographics and growth of population in Kampala
“The population of Kampala was about 1.5 million people in the last census and this surged… in the last ten to 12 years by three per cent,” Kyanda said.
“The demographics have been a big driver in the retail sector. Urbanisation has also been a big growth driver in the retail market.”
She also added that the country has seen a surge of 5.7 per cent per annum with 37 per cent of household in Kampala over the past ten years which makes it conducive for the retail sector.
“There has also been an increase in the middle class, growing consumerism and disposable incomes.”
Kyanda said the fundamentals were however more conducive for the retail sector compared to the residential sector.
“The retail sector is more vibrant as fundamentals are working for foreign investors while residential sector has been hit hard by increase by bank lending rates considered high,” she added.
“There are foreign investors also looking to migrate from Southern Africa to East Africa which has helped improve investment appetite as they look for more growth areas.”