Exploring Africa’s Potential for Leisure and Entertainment Development

Exploring Opportunities in Africa’s Leisure Sector

In this article, we aim to gain a clearer understanding of the challenges and potential opportunities for developing leisure and entertainment facilities across Africa. Aside from South Africa, which boasts a long-standing tradition of major parks and attractions, there is a noticeable scarcity of large-scale facilities. Nevertheless, Africa stands as the second-largest and second most populous continent globally.

Despite the vastness of the market, at LDP, the number of entertainment feasibility assignments completed on the continent in recent years has been relatively limited compared to the more active markets such as the thriving Middle East and the more established American and European sectors.

There are several clear reasons for this stagnation in planning and development within location-based entertainment (LBE). Most notably, the relatively modest spending power across much of the continent plays a significant role.

However, we foresee considerable future opportunities for the further development of entertainment across the region. With rising economies and rapid population growth, alongside a youthful demographic profile, viable opportunities should emerge. But where exactly?

We have pinpointed a selection of nations that merit a closer examination based on available macroeconomic data and our own experiences.

Countries in Africa with Opportunities for Attractions Development

To identify nations with potential, we have ranked all African mainland countries according to:

GDP Per Capita (a higher GDP per Capita = a higher rank)
Total Population (a larger population = a higher rank)
Corruption Perception Index (CPI, a higher score = a higher rank).

GDP Per Capita serves as a useful indicator of wealth; however, in some African nations, wealth derived from natural resources is often unevenly distributed. This is why we have included the corruption index in our assessment.

Greater wealth and larger populations are both crucial markers for Africa attractions development, while corruption and a poor prevailing business environment can hinder investment.

Our rankings produced some expected outcomes as well as some surprising ones. South Africa, with its mature economy and substantial population, ranked at the top. Many key North African countries also featured prominently in the rankings, including Algeria, Morocco, Egypt, and Tunisia, along with some unexpected entries like the Ivory Coast and Ghana.

Below, we delve deeper into specific markets in Africa that we believe are particularly appealing for attractions developers.

South Africa

Markets: One of the largest and wealthiest markets overall, yet also one of the most unequal. It has strong domestic and international tourist markets.
Attractions landscape: Arguably the richest commercial attractions market on the continent, featuring renowned sites like Gold Reef City, Sun City, and uShaka Marine World. The natural environment is also stunning.
Market activity: LDP has recently completed projects in Johannesburg and the broader Gauteng province. There is significant development potential across various key cities, with strong government support for investment in tourism-related businesses and interest from developers in introducing international IP and franchises.

Egypt

Markets: A vast and expanding market that presents strong opportunities for further large-scale attractions and entertainment investment in Africa.
Attractions landscape: A mix of theme parks and water parks (e.g., Dream Park, Wonderland Amusement Park, and Aqua Park Cairo) alongside other contemporary LBE attractions (e.g., KidZania and Ski Egypt). The cultural and heritage offerings are exceptionally rich.
Market activity: LDP has completed recent projects in Cairo and its surroundings, exploring a diverse range of large and small attraction types. We believe there is a genuine opportunity for broader entertainment development in the near future, catering to both urban populations and resort areas.

Nigeria

Markets: An extraordinarily large resident market that is growing rapidly. Although income levels are low, the sheer volume of people and a burgeoning middle class should still present good opportunities. However, it scores poorly on the corruption index, which may pose a barrier to further development.
Attractions landscape: Given the market’s scale, the attractions landscape is relatively modest. Notable examples include Giwa Garden Water Park, Hi-Impact Planet, and Dreamworld Africana, all located around Lagos.
Market activity: LDP has completed several recent projects in Nigeria, including a theme park-anchored resort, and there have been numerous signs of interest in recent years from local developers eager to introduce higher-quality experiences to the market. We will be closely monitoring how this market evolves.

Morocco

Markets: One of Africa’s most developed nations, boasting a significant population and a reasonably strong GDP Per Capita ranking. Its proximity to Europe makes Morocco a strong tourist destination, representing an additional market opportunity.
Attractions landscape: Notable attractions include Tamaris Aquaparc and Parc Sinibad, both near Casablanca, along with various local amusement parks.
Market activity: LDP is currently involved in live projects in Morocco and looks forward to continuing its engagement in ongoing development. Record international tourist arrivals in 2024 signal potential for attractions and entertainment development.

Ranking the markets as we have done provides a good sense of where opportunities lie.

Of course, just because a country is not included in our ‘Top 15’ in Africa does not imply that there are no opportunities for attractions at a more local level. A growing middle class across the continent undoubtedly indicates significant leisure and entertainment development potential, particularly in the medium to long term. At LDP, we are eager to research and analyse more markets in greater depth.

Feasibility is Key

We have conducted feasibility studies in over 80 countries worldwide, completing around 1,000 projects. We look forward to adding to those numbers with exciting, homegrown projects in emerging markets throughout the continent.

For developers and entrepreneurs looking to introduce concepts to their nations for the first time, the process of securing investment, convincing stakeholders, and undertaking capital-intensive projects can be daunting. We are here to assist.

Remember, there is an attraction concept suitable for every market.

By aligning scale, capital expenditure, projected revenues, and target audiences with the market, you can ensure a robust business model. Good feasibility is not merely about saying yes or no to a project; it involves tailoring it to the market. In emerging markets, starting small and phasing in can also be a prudent strategy, allowing entrepreneurs to grow their business in line with the population’s spending power and the market’s potential.

While spending power in many African nations is lower compared to some mature attractions markets, the absence of heavily invested attractions means that slightly lower-budget concepts, such as amusement parks, will be appealing. Tailoring capital expenditure to the opportunity is a critical success factor.

Given the variances across the African continent and, in some cases, the lack of reliable data, we strongly recommend conducting a market and feasibility study before entering these markets to uncover potential opportunities.