Sub-Saharan Africa advances in real estate transparency

by Trust Matsilele 0

According to the report, South Africa was still above the rest of sub-Saharan Africa in the global transparency rankings, but has made little progress since 2012.

Commenting on Ghana, the report stated that the establishment of Credit Reference Bureaus has enabled the creation of a database on borrowers.

This made the country one of the easiest places in the region to register property, enforce contracts and access credit.

Three of the top five global transparency improvers were in sub-Saharan Africa, while five out of eight sub-Saharan Africa markets secured a position in the Global Top 10 improvers.

(READ MORE: Attractiveness of the African property market)

The report shows that Kenya, Ghana, Nigeria, Zambia and Mauritius have made the world’s strongest advances in real estate transparency in 2014.

However, significant transparency challenges remain tangible though progress is being made across the region.

“The fast-growing economies of Kenya, Nigeria and Ghana are amongst the top five improvers globally, and these countries are now clearly on the radars of international corporate occupiers seeking regional hubs for operations in East and West Africa,” noted the Global Real Estate Transparency Index 2014.

“Strong economic growth has created an urgent need for modern commercial real estate as the continent continues to attract interest from international investors and occupiers.”

The Global Real Estate Transparency Index 2014 credited respective governments for the improvements.

“The improvement in transparency in these markets is an outcome of concrete efforts taken by their governments to improve governance and the regulatory framework in order to create a more business-friendly environment.”

(READ MORE: Transparency at the core of governance: Labelle)

The East African powerhouse, Kenya emerged as the top global improver.

“Kenya demonstrated an impressive improvement in its transparency score, registering the largest improvement globally,” read the report.

“As Kenya has continued to establish itself as the economic hub for East Africa, growing interest from international investors has created a need for greater regulation of the real estate market.”