Regional City Development

Countries all across Africa are investing billions of dollars to

build new techno-cities. These satellite city projects are designed to serve as centers for business and technology and are expected to create thousands of employment and housing opportunities for Africans.

With rapid urbanization, older cities in sub-Saharan Africa are now overflowing

with millions of people. As a result, new techno city projects are being built from scratch on the edges of large cities to attract citizens with promises of jobs and housing. Governments are confident that the new city projects will spur economic growth and development and are allocating infrastructure, planning, and management resources toward creating cities with luxurious facilities and modern infrastructure.

Satellite city projects are reshaping Africa’s urban future through proactive planned development and are typically marketed as smart and futuristic, containing a mix of social amenities as well as technology and business centers for their residents.

They are built to attract investment in most emerging African countries, but each incorporates different designs to meet country-specific needs. Take a look at a few of the techno city projects that are spreading over sub-Saharan Africa. ★

Sources:http://edition.cnn.com/2013/05/30/business/africa-new-cities-konza-ekohttp://www.smartplanet.com/blog/bulletin/the-problem-with-africas-new-tech-cities/18877http://www.standardmedia.co.ke/m/story.php?articleID=2000087434&story_title=Headache-for-Africas-emerging-lifestyle-cities

Investment Climate Update:

TechnoCities

INSI

DE: Konza—Techno City, Kenya . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

Hope City, Ghana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

Eko Atlantic, Nigeria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

Lessons From Angola ‘Ghost City’ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

FAST FACTS:

September 2013 | Vol 4, No 1

n The United Nations estimates that Africa’s urban population of 450 million will triple in the next four decades .

n Kenya has launched a US$14 .5 billion project to build Konza Techno City . The city is known as Africa’s Silicon Savannah and is envisioned to be a global technology hub in Kenya .

n President Mahama of Ghana has commenced a three-year project to build a $10 billion, six tower information communication technology (ICT) hub near Accra .

n Eko Atlantic is a multibillion-dollar city building project that is being developed to provide upscale accommodations for Nigerians who want to move out of Lagos .

n Angola’s Nova Cidade de Kilamba is a Chinese-built, mixed residential development that should serve as a cautionary tale to megacity builders .

Africa Business Initiative

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Africa Business Initiative

Investment Climate Update: Techno Cities

KONZA—TECHNO CITY, KENYA

Konza techno city is a massive project designed to advance the growth of

Kenya’s technology industry. Konza will be a sustainable city that could serve as a global technology hub and a major economic driver for Kenya.

The project will feature an array of captivating attractions including a central business district, a university campus, urban parks, and housing to accommodate 185,000 people. The multibillion-dollar city will be developed on a 5,000 acre plot of land, around 60 kilometers southeast of Nairobi.

The Konza city project aims to improve much-neglected infrastructure, and it is part of the government’s ambitious Vision 2030 initiative. This new city is anticipated to generate more than 20,000 IT jobs by 2015 and more than 200,000 jobs by

Hope City, Ghana

Ghana has begun the construction of Hope City, a US$10 billion

high-tech hub just outside of Accra. Ghana intends for the new city to foster technological growth and attract investors in the global ICT industry.

Hope City will be built on 1.5 million square meters of land, roughly 30 minutes West of Accra. The Ghanaian government is aiming for major players from the ICT industry to establish offices in the technopolis, which is expected to create jobs for an estimated 50,000 people.

The city, which will serve as a center for product research, design, and manufacture, is expected to advance Ghana’s technological and ICT industries. In addition, it has the potential to position Ghana as a leader in the technology sector in Africa.

At the Hope City project commencement, President John Mahama announced that the private sector would spearhead the project. A wide array of private companies is needed to finance the project in addition to its initial investors including RLG Communications and Microsoft.

The construction of Hope City is an ambitious three-year journey which will be finalized by the erection of six towers enclosing the city. An arrangement of different height bridges will connect various districts of the city including an IT university, residential area, hospital, and other social amenities such as restaurants, theatres, and sporting centers.

The architects who designed this contemporary city aimed to design a living space that was a discovery arena and a habitat that reflects the tradition and culture of the Ghanaian people.

Traditional Ghanaian compound houses are made of mud brick walls and thatched roofs and are built for communal life and mutual assistance. The Hope City model has been designed to emulate the feeling of the traditional Ghanaian compound house but in a compound cluster. ★

Sources:http://www.cnn.com/2013/03/20/tech/hope-city-ghanahttp://www.ventures-africa.com/2013/03/ghana-launches-10-billion-rlg-powered-tech-city/http://www.rlgghana.com/index.php/2013-02-07-11-25-04.htmlhttp://www.bbc.co.uk/news/world-africa-21658149

When completed, Hope City will be home to Africa’s tallest building. The structure will be about 885 feet tall.

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What is Kenya Vision 2030“A national long-term development blue-print that aims to transform Kenya into a newly industrializing, middle-income country providing a high quality of life to all its citizens by 2030.”

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Africa Business Initiative

Investment Climate Update:Techno Cities Techno Cities

EKO ATLANTIC, NIGERIA

Eko Atlantic is a residential and business development center being built outside of the overcrowded city of Lagos, Nigeria. Like many African cities, Lagos

is overpopulated and quickly running out of living space. In fact, the United Nations dubs Lagos as one of the fastest-growing cities in the world, predicting its population to grow more than 25 million by 2015.

According to the U.N., Lagos is the world’s most rapidly growing megacity and has a population that grows by about nine people every 10 minutes.

Eko Atlantic is being built to provide high-end accommodations for the affluent who are residing in nearby Lagos. The project is not designed to improve the housing crisis affecting the majority of Lagos as the people there will not be able to afford the beautiful glass tower condos in Eko Atlantic.

When Eko Atlantic is completed, developers believe that it will be a model megacity for Africa. It is projected to provide homes for around 250,000 people and employment for an additional 150,000 commuters. Eko Atlantic is meant to be an upscale business center without power cuts, communication failures, and water scarcities that occur frequently in Lagos. It will feature high-rise condos, an international school, a giant conference center, and a U-shaped office tower named Unity.

Eko Atlantic is being built by reclaiming land from the Atlantic Ocean. Sand is being dug up from the bottom of the ocean and projected out of a hose to create the city’s beach platform. To prevent the ocean from eroding the new land, a nine-meter protective wall is being constructed offshore. The Great Wall of Lagos is being constructed out of five-ton concrete blocks and will be able to withstand the worst African storms.

The US$6 billion expenditure will be financed solely by private investors. The government will not provide any funding for Eko Atlantic, but it will offer concessions for the project and receive subsequent taxes on land sales and development. ★

Sources:http://www.ventures-africa.com/2012/12/eko-atlantic-city-a-mammoth-new-development-on-the-coastline-of-lagos/http://www.ekoatlantic.com/about-us/http://online.wsj.com/article/SB10001424127887324251504578581570831563906.htmlhttp://edition.cnn.com/2013/05/30/business/africa-new-cities-konza-eko

Lessons From Angola ‘Ghost City’

Nova Cidade de Kilamba is a megacity project that stands as a grave lesson

for future urban-city developments. The city of Nova Cidade de Kilamba is a US$3.5 billion development that was built in an undeveloped area about 30 km away from Angola’s capital, Luanda. The project was developed by the state-owned China International Trust and Investment Corporation and was designed to house around 500,000 people.

During his 2008 election campaign, President Jose Eduardo dos Santos pledged to build 1 million homes in four years. Nova Cidade de Kilamba is one government flagship project aimed to help fulfill that promise. There are 750 apartment buildings and more than 100 retail units to house the expected influx of people. This pristine mixed residential development is complete with schools, health clinics, and recreational centers. The government of Angola offers the city as an alternative to the congested slum-ridden districts of neighboring Luanda.

Despite Nova Cidade de Kilamba’s attraction, very few Angolan citizens can afford to reside in the development. This fact was illustrated by Kilamba’s initial apartment sales. Out of the 2,800 apartments put on the market, only 220 were sold. Two-thirds of Angolans survive on less than two dollars a day, and the price to purchase one of the apartments is between $120,000 and $200,000. The supply of modern living arrangements will continue to outweigh Angola’s demand as long as prices remain outside Angolans’ budgets.

The Angolan ghost city should serve as a warning to other countries such as Nigeria, Kenya, and Ghana that are developing their own technology cities in Africa. The

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Africa Business Initiative

Investment Climate Update: Techno Cities

KONZA—TECHNO CITY, KENYA

To learn more about ABI, visit www.uschamber.com/international/africa.Contact ABI staff at abi@uschamber.com.

»

ABOUT ABI

ABI is the leading advocacy-driven initiative representing America’s top companies

doing business across Sub-Sahara. The initiative focuses on market access and trade facilitation, financing, and engagement with the governments of the United States and African nations.

ABI works with the U.S. business community to develop legislative policies that foster foreign direct investment in Africa. It also provides tailored guidance to American companies doing business in African nations and introduces U.S. companies to the continent’s vast economic opportunities.

Under ABI’s leadership, U.S. corporate representatives engage key members of Congress, the administration, and foreign governments in strategic dialogues to promote private sector engagement. ABI is also home to two bi-lateral business councils – the U.S. – Côte d’Ivoire Business Council and the U.S. – South Africa Business Council. ★

2030. If successfully executed, the city will provide Kenya with many sources for growth and development.

Trends in Business Processing Outsourcing and Information Technology Enabled Services (BPO/ITES) first spurred the thought to have an African Silicon Savannah in Kenya.

Global offshore BPO/ITES revenue was estimated to be around US$110 billion in 2012 and is projected to reach $300 billion by 2015. However, statistics show that Africa only brings in about 1% of the total revenue accumulating from the BPO/ITES industry. Kenya’s government is spearheading the development of this industry hoping to gain an increased percentage of the off-shoring BPO/ITES trade revenue in the future.

The $14.5 billion project is being financed using a public-private financing model. The Kenyan government intends to lease land to private investors that will build and operate industries in the city. The Kenyan government will uphold infrastructure and policy regulation in accordance with best global practices. ★

Sources:http://edition.cnn.com/2013/05/30/business/africa-new-cities-konza-ekohttp://www.un.org/africarenewal/magazine/may-2013/africa-wiredhttp://www.bbc.co.uk/news/world-africa-21158928http://www.standardmedia.co.ke/m/story.php?articleID=2000087434&story_title=Headache-for-Africas-emerging-lifestyle-cities http://www.konzacity.co.ke/http://www.vision2030.go.ke/index.php/home/aboutushttp://www.vision2030.go.ke/index.php/home/aboutus

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developers who are planning these projects need to consider the market for which they are building. In the case of Nova Cidade de Kilamba, investors have lost billions of dollars and have been left with an unoccupied paradise built in the middle of a slum. ★

Sources:http://www.ibtimes.com/angolas-35b-chinese-built-ghost-town-722923http://www.bbc.co.uk/news/world-africa-18646243http://www.businessinsider.com/chinese-built-ghost-town-kilamba-angola-2012-7?op=1

Lessons From Angola ‘Ghost City’