Investors are withdrawing investments in real estate to invest in data centres and green projects as a way of rebalancing their portfolios in response to the global macroeconomic volatility.

The move is also supported by a global shift towards technology.

In the last three years, there has been a significant exodus of investors from Uganda to secure their investments due to a variety of factors, including depreciating currency and high interest rates in Western economies.

Property consulting firm Knight Frank now reports that these investors - especially those in private equity - are increasingly growing interest in investing in industrial, residential, life sciences, and data centres. High net worth individuals are also showing strong interest in alternative sectors, especially in stable markets in Africa, but investment managers and institutional investors are expected to lead the demand.

The Africa 2022/23 report notes that political and environmental risks will have a huge impact on capital flows, mostly in projects that have dollar denominated returns.

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