by James Kennard, Leisure Development Partners
In this article, we aim to better understand the challenges and potential opportunities for developing leisure and entertainment facilities across Africa. Apart from in South Africa, where there is a long tradition of major parks and attractions, there is a clear lack of large-scale facilities. Yet, Africa is the second-largest and second most populous continent in the world.
Despite the sheer size of the market, at LDP, the number of entertainment feasibility assignments completed on the continent over recent years has been relatively scarce when compared to the much busier markets such as the booming Middle East and more mature American and European markets.
There are some clear reasons for this inertia in planning and development in location-based entertainment (LBE). Most obviously, relatively modest spending power across most of the continent.
That said, we see significant future opportunities for further development of entertainment across the region. Rising economies and rapid population growth, coupled with a young demographic profile, should open the door for viable opportunities. But where?
We have highlighted a handful of nations worth taking a deeper look at based on available macroeconomic data and our own experience.
Countries in Africa with opportunities for attractions development
As a way of identifying nations with potential, we have ranked all African mainland nations according to
- GDP Per Capita (a higher GDP per Capita = a higher rank)
- Total Population (a larger population = a higher rank) and
- Corruption Perception Index (CPI, a higher score = a higher rank).
GDP Per Capita is usually a good gauge of wealth, but across some African countries, wealth derived from natural resources (for example) is often not well distributed. This is why we have included the corruption index in our assessment.
Greater wealth and larger populations are both important markers for entertainment development, whilst corruption and a poor prevailing business environment can be a hindrance to investment.
Our rankings yielded some expected and some less expected outcomes. South Africa, with its mature economy and large population, ranked at the top. Many of the key North African countries also appear towards the top of the rankings, including Algeria, Morocco, Egypt, and Tunisia, as well as some more surprising inclusions, such as the Ivory Coast and Ghana.
Below, we delve a little deeper into some markets in Africa we feel are of particular interest for attractions developers.
South Africa
- Markets: One of the largest, wealthiest overall markets, but also one of the most unequal. Strong domestic and international tourist markets.
- Attractions landscape: Arguably the richest commercial attractions market on the continent, featuring the likes of Gold Reef City, Sun City, uShaka Marine World, and Wild Waves Water Park. Wonderful natural environment.
- Market activity: LDP have completed recent projects in Johannesburg and the wider Gauteng province. There is development potential across a range of key cities. There is strong government support for investment in tourism-related businesses and interest from developers in bringing international IP and franchises.
Egypt
- Markets: Huge and growing markets representing strong opportunities for further large-scale attractions and entertainment investment in Africa.
- Attractions landscape: Mix of theme parks and water parks (e.g. Dream Park, Wonderland Amusement Park, and Aqua Park Cairo) and other contemporary LBE attractions (e.g. KidZania and Ski Egypt). An extremely rich cultural and heritage offer.
- Market activity: LDP has completed recent projects in Cairo and the surroundings, investigating a diverse range of large and small attraction typologies. We feel there is a real opportunity for wider entertainment development in the near future, addressing both urban populations and resort zones.
Nigeria
- Markets: Extraordinarily large resident markets, and growing strongly. Income levels are low, but the sheer volume of people and a growing middle class should still represent good opportunities. Scores poorly on the corruption index, which will likely be a barrier to further development.
- Attractions landscape: Given the scale of the market, the attractions landscape is relatively modest. However, examples of note include sites such as Giwa Garden Water Park, Hi-Impact Planet, and Dreamworld Africana, all clustered around Lagos.
- Market activity: LDP has completed a handful of recent projects in Nigeria, including a theme park-anchored resort, and there have been plenty of signs of interest over recent years, with local developers wishing to bring higher-quality experiences to the market. We’ll watch how this market evolves with interest.
Morrocco
- Markets: One of Africa’s most developed nations with a significant population and reasonably strong GDP Per Capita ranking. Proximity to Europe means Morocco is also a strong tourist destination, which should represent an additional market opportunity.
- Attractions landscape: Some notable attractions in the market include Tamaris Aquaparc and Parc Sinibad, both near Casablanca, as well as a range of other local amusement parks.
- Market activity: LDP has current live projects in Morocco and looks forward to continuing its involvement in ongoing development. Record international tourist arrivals in 2024 are a good marker for potential attractions and entertainment development.
Ranking the markets as we have done can give a good sense of where opportunities lie.
Of course, because a country is not included in our ‘Top 15’ in Africa does not mean there are not opportunities for attractions at a more local level: a burgeoning middle class across the continent surely means big leisure and entertainment development potential, certainly in the medium to long term, and at LDP we look forward to researching and analyzing more markets in greater depth.
Feasibility is key
We’ve conducted feasibility studies in over 80 countries worldwide, with around 1,000 projects completed. We look forward to adding to those numbers with exciting, homegrown projects in emerging markets throughout the continent.
For developers and entrepreneurs who wish to bring concepts to their nations for the first time, the process of raising investment, persuading stakeholders, and taking on capital-intensive projects is daunting. We are here to help.
Remember, there is an attraction concept fit for every market.
By marrying scale, capex, forecasted revenues, and target audiences to the market, you can ensure a solid business. Good feasibility is not just saying yes or no to a project, but tailoring it to the market. In emerging markets, phasing in and starting small can also be a wise move, allowing entrepreneurs to grow their business with the population’s spending power and the market’s potential.
While spending power in many African nations is low compared to some mature attractions markets, the lack of heavily invested attractions means that slightly lower budget concepts, for example amusement parks, rather than theme parks, will be attractive. Tailoring capex to the opportunity is a critical success factor.
With such variances across the African continent and in some instances poor data, we would suggest a market and a feasibility study is an absolute must before entering these markets and unearthing potential opportunities.
