_Modern mall development to play major role in shaping the future of Africa’s cities

Development has been driven by the growth of the continent’s consumer markets and the expansion of domestic and international retailers, particularly the leading South African supermarket chains such as Shoprite, Pick n Pay and Game.

South Africa is by far the largest and most mature retail market in the Sub-Saharan region, with approximately 23 million sq m of shopping centre floor space, compared with only about 3 million sq m in the whole of the rest of Sub-Saharan Africa.

The South African market continued to grow in 2016, most notably through the completion of Atterbury’s 131,000 sq m Mall of Africa, the largest single-phase mall development ever in Sub-Saharan Africa.

Outside of South Africa, the Kenyan capital Nairobi has the greatest volume of modern retail floor space in Sub- Saharan Africa, and it continues to be a development hotspot.

The city saw the completion of the first phase of Actis’ Garden City Mall (33,500 sq m) in 2015, followed by the opening of The Hub (30,000 sq m) in the affluent suburb of Karen in 2016.

The 67,000 sq m Two Rivers Mall, which is now the largest in Kenya, opened in February 2017.

Elsewhere, developers including Atterbury, Novare, Resilient and RMB Westport have all delivered modern mall projects over the last two years, adding to the retail stock of countries including Ghana and Nigeria.

The positive growth outlook for Côte d’Ivoire and Senegal has caused these countries to also attract increased interest, having previously seen relatively limited modern retail development.

Of particular note, CFAO has opened PlaYce Marcory in Abidjan as the first of a series of Carrefour-anchored malls that are planned for West and Central Africa.

Large volumes of modern retail space remain in the pipeline across Sub- Saharan Africa, although the weakening of the oil-driven economies has led to the postponement or scaling down of some projects in these countries.

With most of the region’s major capital cities now having at least one modern mall, developers have increasingly targeted secondary cities in order to gain firstmover advantage in these locations.

There are also signs that pragmatic developers are now concentrating on the delivery of well-located small and medium-sized convenience shopping centres rather than regional mega-malls.

As the sector grows and competition between retail schemes intensifies, developers will seek to differentiate their malls by offering access to international brands, leisure facilities and upscale consumer experiences.

Selecting the right micro-locations for development will be crucial to the success of new centres, particularly in cities that already have successful existing malls.

Modern mall development will play a major role in shaping the future landscapes of Africa’s growing cities.

Selected shopping mall openings 2015 - Q1 2017 ( click to expand)