Press Release – Shopping Mall across Africa 2015 Report

PRESS RELEASE: 292 shopping centres across the African continent in 2015. Strong growth with 223 new malls expected by 2018 

BARCELONA, June 30th, 2015.

Sagaci Research, a market intelligence firm dedicated to African markets, has released the third edition of “Shopping Malls across Africa”. Key findings are highlighted below.

Priority investment countries

Based on existing malls and on project pipelines, the major focus countries for tenants are: Egypt, Morocco, Nigeria, Kenya, Ghana, Angola, Zambia, Mozambique and Namibia. Developers’ priority countries are: Algeria, Tunisia, Morocco, Sudan, Senegal, Nigeria, Ghana, Ivory Coast, Cameroon, Gabon, DR Congo, Angola, Zimbabwe and Uganda.

Modern retail keeps growing across the continent, GLA increased 13%

Today there are 292 malls and 31 have been opened since Jan 2014. Total leasable area grew by 13% to 5.3 million square meters.

West Africa shows the largest growth in terms of new mall openings

The number of malls in West Africa has increased by 19% in the past 18 months, the remaining regions have increased by 9% on average.

North Africa still has the greatest number of malls with 112 centres, whereas West Africa has 37.

Average mall surface increased 7%

The average mall Gross Leasable Area, (GLA) is 18.300 m², which is about 17% smaller than the average European mall.

The 31 newly opened malls are 7% larger, with an average GLA of 19,500 m².

The largest newly opened malls are: The District (72,261 m² – Cairo), The Mall Grove of Namibia (55,000 m² Windohek), Genena City (51,000 m² Sharm-El-Sheikh).

North African malls are the largest in the region with an average GLA of 25,500 m² whilst Central Africa holds the smallest centres with an average GLA of 10,600 m².

Three newly opened malls rated AA-A by Sagaci Research

Top malls rated AAA according to Sagaci Research’s rating system are all located in North Africa. No new AAA centres have been opened in the last year and a half.

The highest rated newly opened malls are in Ghana, “The West Hills Mall” (AA) and in Namibia, “The Grove Mall of Namibia” (A) and “Tsumeb Mall” (A).

International brands are increasing the number of stores

International European and North American brands such as Bata, Adidas, Mango, Celio, Swatch, Carrefour, Etam, Aldo, KFC, Nike and Levis are increasing the number of stores in Africa. Mr Price, Woolworths, Shoprite and Truworths are the top South African brands showing strong expansion growth.

Mall expansion to continue, 223 new malls by 2018

By 2018, 223 new shopping centres are expected to be opened, including 40 in Egypt, 25 in Nigeria, 20 in Kenya, 15 in Ghana, 14 in Angola and 13 in Morocco. The total surface area by 2018 will reach 10 million m².

The development is being led by two types of players,

  • International multicountry operators such as South African McCormick Property Development and Atterbury Property Developments, and international developers/investors such as Actis/Laurus, RMB Westport, Majid Al Futtaim
  • Local players such as the Namibian Safcoll Holdings (Pty) Ltd and the Moroccan Compagnie Générale Immobilière.

The full study is available at www.sagaciresearch.com

About Sagaci Research

Sagaci Research is a market intelligence firm dedicated to African markets. The firm, founded in 2012 by former consultants from The Boston Consulting Group (BCG), publishes reports and databases on retail and consumer goods topics, statistical data on household consumption and conducts field studies in 20 countries of the continent. Sagaci Research is the exclusive supplier of high-quality data and information on African economies for leading multinational companies and investors.

Sagaci Research Six Category Mall Rating (™)

This is a cross-country mall evaluation system, ranging from AAA to D according to the overall mall attractiveness for leading international tenants.

Notes

The Report excludes South Africa

For more information, please visit www.sagaciresearch.com

Contact: Julien Garcier, Partner & Managing Director, +33 6 25 05 06 07

APPENDIX

Shopping centers and surface by region

Region

GLA surface (m²)

% GLA surface

Shopping centres (#)

% of centres

North Africa

2,856,021

53%

112

38%

West Africa

522,400

10%

37

13%

Central Africa

127,442

2%

12

4%

East Africa

1,256,822

24%

101

35%

Southern Africa

577,696

11%

30

10%

Total Africa

(ex. South Africa)

5,340,382

100%

292

100%

 

Top 5 of shopping centers in Africa (excluding South Africa)

Based on shopping centre attractiveness for international brands –

Name of centre

Country

City

GLA surface (m²)

Rating

City Stars Mall

Egypt

Cairo

150,000

AAA

Mall of Arabia

Egypt

Cairo

111,300

AAA

Cairo Festival City

Egypt

Cairo

168,000

AAA

Morocco Mall

Morocco

Casablanca

70,000

AAA

 

Top 5 of shopping centres in Sub-Saharan Africa (excluding South Africa)

Based on shopping centre attractiveness for international brands –

Name of centre

Country

City

GLA surface (m²)

Rating

West Hills Mall

Ghana

Accra

27,000

AA

Sea Plaza

Senegal

Dakar

14,000

AA

The Grove Mall of Namibia

Namibia

Windhoek

55,000

A

The Junction

Kenya

Nairobi

23,800

A

Ikeja City Mall

Nigeria

Lagos

22,500

A