Active and Passive Land-banking!

WHAT IS LAND BANKING?

Land banking in Africa is the practice of acquiring large or small tracts of land in anticipation of future development so as to initiate a sale for profit making.

It is often practised initially by foreign investors or governments, who see Africa as a continent with vast potential for growth, but now it has been decentralised and can be practised by individuals who can afford it.

There are a number of reasons why investors are interested in land banking:

1. The continent is home to a young and growing population, which is expected to reach 2.5 billion people by 2050. This growth is creating a demand for housing, infrastructure, and other development, which is driving up land prices.

2. Africa is rich in natural resources, including oil, gas, minerals, and timber. This makes it an attractive investment destination for companies looking to secure access to these resources.

3. The African government is increasingly open to foreign investment. In recent years, a number of countries have introduced reforms to make it easier for foreign and local investors to acquire land.

Benefits if Land-banking to both investors and the Nation:

Land banking in Africa can have a number of positive effects such as;

1. It can help to promote economic development by providing land for new businesses and infrastructure.

2. It can also help to improve the lives of local people by providing jobs and opportunities.

3. It can serve as a source of future investment for investors rather than keeping money in the bank.

Types of Land Banking

We have two types of land banking, which are;

1. Active land-banking - Active land banking is a type of land banking that involves the commercial utilisation of the land for profit generation before sales period. This includes Giving the land out for rent to farmers, it also involves farming on the land to produce income generating streams.

2. Passive Land-banking - This is a type of land-banking that involves only purchasing a property for the sole purpose of waiting to resell without any form of revenue-generating activities carried out on the property.

With active land-banking you can earn from your property and ensure security of your land from land-grabbers or fraudsters.

Start your active land banking journey with us today.

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