Newsletter #8: Rethinking Urban Spaces in African Cities

Welcome to the 8th edition of the AXIAN Group newsletter!

This issue explores "Hybridization: Rethinking Urban Spaces in African Cities." We'll examine how blending residential, commercial, and green elements can foster sustainable and vibrant urban development across Africa.

Rethinking urban spaces in African cities

With Pedro Novo

African cities are undergoing a significant urban transformation. Buildings are no longer static structures; they’re evolving into dynamic ecosystems that foster growth, inclusion, and sustainability. The concept of hybridization emerges in an era defined by human connection and cultural exchange. At the forefront of this shift is AXIAN Properties. Its CEO, Pedro Novo, helps us explore a crucial question: How are our urban spaces evolving and what role does hybridization play?

For me, real estate is the physical foundation of all our ambitions: economic, social and cultural. It's not a stone business; it's a business of impact.

Pedro Novo describes himself as a builder of ecosystems and a man on the ground, passionate about the tangible impact that property investment can have on both economic development and individual lives. He began his career at Bpifrance, helping thousands of entrepeneurs’ scale, especially in tourism and international business. He later led an investment vehicle specializing in hospitality. He then joined AXIAN Properties as CEO, with a strong conviction that real estate is the cornerstone of urban transformation in Africa.

The search for hybridization

In both his personal and professional life, Pedro Novo follows a logic rooted in the search for hybridization. The challenge that arises from this, as he explains, is that “hybridization creates value. A friction between differences is both an opportunity to create something new and to bring out the best in performance.” He adds that it is increasingly about “creativity and meaningful impact, in which our habits are tailored by these mixes. A mix of uses: hybridization of our personal, family, and professional organizations.” This trend is becoming more visible, “where places are hybrid, where functions are intertwining accommodation, retail, offices, and more. Places corresponding to people’s lives. Places where they feel themselves, and where the stones tell their stories while bringing out their best.” For Pedro, it is about modernization and adapting buildings to new uses. He explains the AXIAN Properties strategy clearly: “It’s not about growing real estate just for the sake of growth but rather seeking growth for the benefit of the entire Group. And that is hybridization; how we think about spaces for telecoms, for industries, for residences, for hotels or hospitality operations, restaurants and sports, as well as short-term accommodation.” For him, these are the key elements to address. “It’s about thinking how to serve professionals and grow with them.” 

Is the future hybrid for Africa?

“First, there isn’t one Africa, but many Africas. There are 54 different countries, each with its own customs, histories, land realities, and so on. There is no single truth about urbanization, but rather multiple truths shaped by a generational phenomenon.” He notes that “this phenomenon is not unique to Africa. It is more related to land pressure in urban areas than to the specific nature of the African continent.”

However, he points out that the way hybridization is applied varies from country to country, depending on social and societal characteristics. “There are different living spaces, communal areas where society is rebuilt, where this ‘village’ culture is recreated. This is not a pejorative term; socially, it refers to coming together around a form of chiefdom, building society through shared living spaces. Hybridization happens where traditional culture meets modernity. It’s where buildings house not just homes but also professional spaces, dining areas, and essential services. He acknowledges that this vision has not yet been fully realized. “We have not yet fully succeeded in this area, although some concepts, such as Africa Works, are well adapted to African realities in specific urban contexts.”

Taking Madagascar as an example, Pedro notes that “with a 36% urbanization rate,” the importance of land and its ability to amortize an asset cannot be overlooked. “Despite a low rate of urbanization, the tertiary sector offer is often unsuitable. Projects such as The Bureau Anosy illustrate the importance of a mix of uses and quality services in creating useful, sustainable, and economically efficient real estate assets.” In short, he states, “hybridization is above all a social phenomenon that responds to the specific needs and economic realities of African cities.”

The essence of AXIAN Properties

“AXIAN Properties has integrated the concept of hybridization since its early beginnings, starting with Park Life Alarobia 15–20 years ago,” says Pedro Novo. Park Life spans 12 hectares and offers a range of amenities, from sports facilities and restaurants to educational institutions, long-term accommodation, and aparthotels. “It is used by both locals and visitors alike, making it a highly sought-after asset,” Pedro highlights. 

Today, AXIAN Properties manages 200,000 m² of assets, 95% of which are occupied. These assets are highly diversified, including offices, industrial spaces, shops, and housing. Several sites reflect this hybrid model. Tanjombato, for instance, illustrates the hybridization of urban uses. On the same site, there is a shopping center (Smart), a residential estate with villas (Riviera), and a hub for industrial and tertiary activities (Galilée). These elements are located just a few hundred meters apart, creating a vibrant and cohesive urban environment. “At AXIAN Properties, with its companies First Immo and SGEM, we want to transform standards by developing projects that are useful, legible, usable and compatible with Africa's urban challenges. Our common thread: linking economic growth and urban transformation’, states Pedro.

 Pedro affirms the company’s strategic direction: “This trajectory towards hybridization is a reality in our existing portfolio, which is undergoing metamorphosis. It is also at the heart of the projects we are developing or evaluating, whether in Madagascar or across the continent.” He further emphasizes, “This approach responds to current demand and the realities of land ownership. It is essential that these projects meet target net returns per square meter and align with the environmental standards we are aiming for, such as EDGE or BREEAM, which guarantee the environmental quality of our buildings.”

Skyline: A new horizon for green buildings

“Skyline is a very important step toward greener buildings, having received EDGE certification for its design phase. Our strategy is full decarbonization, from design to delivery—because that’s what our tenants increasingly demand. The Skyline project combines passive ventilation techniques, green spaces, convivial areas, and a balanced economic model. The result: rapid occupancy, sustainable rents, and a strong brand image. This approach creates rental preference, builds occupier loyalty, and strengthens the project’s financial resilience.”

Pedro further contextualizes the current market: “The instability and high cost of access to energy, particularly the reliance on fuel-powered generators in the absence of stable supply, is a major reason why we need to rethink the quality of our buildings.”

Decarbonization through solarization has become a key marker of sustainable development. Pedro also sees potential in biomass or geothermal energy for other environments, even if they are not strictly urban. “This is an inescapable economic reality. The initial cost of these ‘green’ projects is often questioned. However, when we compare the price per kilowatt on the grid with the cost of fuel for generators, the total cost is often equivalent to, or even higher than, adopting a natively green solution in our buildings,” he acknowledges. 

“This approach is therefore central to the transformation of our existing building stock. We plan to install 4.5 megawatts across all AXIAN Properties buildings over the next 24 months. This shift will stabilize energy use across our portfolio. Galilée, for example, will be nearly carbon neutral.” Pedro also highlights other essential aspects of greener cities, such as urban electric mobility as well as waste management that are also essential to greener urban environments.

Hospitality and sustainability: a pragmatic view

“I believe that the subject of hospitality and sustainability rests on several pillars. First, it’s essential not to get into the wrong debate. For example, some might argue for a reduction in tourism or hospitality because of the carbon cost of air travel. But that’s a false debate.”

He clarifies, “If you fly from Paris to Costa Rica and back, the carbon footprint will be significant. However, spending a week in Costa Rica with your family, even by plane, will cost the planet far less than travelling to South Africa today, where almost all energy is produced from coal. The debate on air transport is therefore somewhat distorted.” 

“With that out of the way,” he continues, “the real question is: how can we, through the use of our buildings, enhance the experience while promoting sustainability?”

This means buildings designed to consume less energy, with a strong commitment to local sourcing, whether in materials or in the products used in restaurants or rooms: “cleaning products, food, everything.” It also means concrete steps to save water and energy, such as installing local, solar-powered systems with battery storage. “It’s also about customer commitment,” Pedro adds. “By staying in a particular place, they can help build a new classroom, for example.” In this way, hospitality becomes a vector for positive externalities, social and environmental impact delivered through the very act of consumption.

He outlines a practical, grounded approach: “It’s about using local materials for construction, favoring local labor to create real social impact, and reducing unnecessary imports. It’s also about producing renewable energy, managing water and waste responsibly. International groups already know how to make it work.” For him, it is above all a desire to do things. The debate about profitability is a false one.

“I believe that bringing sustainability in what we build and offer is a societal, human and cultural need”

Pedro affirms that if the marriage between hospitality and durability is done, we gain places that welcome people better, consume less and last longer, with optimized uses.

Pedro points out an essential approach: sustainability is not necessarily a luxury or reserved for the elite. It requires creative intelligence because it must navigate various constraints.

“I remember an anecdote with Jean-Louis Costes, the Parisian hotelier. When I visited one of his kitchens at the Hôtel Costes, which was only about twenty square meters, I was amazed to see that they were serving more than 1,000 meals a day and generating sales of 20 million euros. It's an example of how ingenuity can produce impressive returns, even within constraints.” 

Real estate and the limits of affordability

Pedro recalls a recent exchange: “A journalist asked me about the predominance of luxury property. That brings us back to core issues that is: scarcity and densification.”

He explains, “given the current value of land, especially in city centers, it’s nearly impossible to offer more social housing. To depreciate the cost of property, we need new mechanisms. One of them could be public-private partnerships. If governments offered more favorable building leases on state-owned land, we could share risks better and reduce construction costs enough to make housing more accessible.”

But financing remains a major barrier. “Access to credit is difficult in many countries. So we’re forced to raise significant equity capital to launch projects. Naturally, this pushes us to seek higher returns, which means moving upmarket.”

As for the surge in luxury real estate, Pedro points to regional dynamics. “Cities like Abidjan, Dakar, and other major African cities, are seen as islands of political, economic, and security stability. Families from across the region move there for health, education, or peace of mind, even while maintaining ties to their home countries. That demand fuels the growth of high-end housing.”

Shaping Africa’s urban future

For Pedro, Africa’s major conurbations are set to grow without simply copying European, American or Asian models. “They’ll incorporate international know-how, yes, but with a strong local character and atmosphere,” he affirms. He identifies three key challenges for the development of these growing cities:

• Smart densification

This is a direct response to land pressure by focusing on better-located sites. “Smart densification relies on mixed use, social diversity, and creative arrangements between the public and private sectors to make these opportunities accessible,” he explains. “And hybrid uses require hybrid financing. The way a building is funded must match its purpose and user mix.”

• Suburbs metamorphosis

Pedro sees the rise of “secondary centralities”—what he calls living spaces. “These are districts where people rarely move beyond their area. But soon, we’ll see logistics corridors, business hubs, and improved mobility options take root.” Taking Abidjan as an example, he notes: “Today, areas like Yopougon, Marcory and Port-Bouët are only linked by road. Tomorrow, they’ll be connected by metro—and that will change the city. These new districts, growing out of necessity along major roads, will become more connected. This emergence of secondary centralities is something we need to study carefully when making investment decisions.” 

• Rise of environmental awareness

This shift is now shaping the entire sector. “It’s pushing all developers, including us, to integrate new standards across all projects. We use labels like EDGE, Net Zero, BREEAM or HQE. I honestly believe this is a more straightforward and sustainable approach.”

Financial hybridization

Pedro is direct: “The complexity of today’s buildings means we need to radically rethink how they are financed.” He goes on to explain, “If we stick to traditional methods, equity or bank financing, we run into durations and interest rates that no longer guarantee a reasonable economic balance. That’s why we need to explore broader, more flexible models.” One such model he suggests is club deals, where risk is shared among different players. But he sees potential for even more innovative solutions: “In the medium term, we could imagine tools that allow savings to be mobilised into real estate investment products—something that doesn’t yet exist on the African continent.”

For Pedro, it’s all about creating layered financial strategies that reflect the mixed nature of modern assets: “Part of a project could be dedicated to property development, another to long-term rental, and a third to more dynamic models like hotel operations. It’s a different way of looking at how financial resources align with real estate assets.”

Importance of local architecture

“Architecture is a pivotal point,” says Pedro. “Architects like Koffi Diabaté in Abidjan, who work across the region, are bringing a new vision to buildings—even office spaces.”

He highlights how these architects are integrating key principles: “They incorporate everything we’ve talked about, respect for the environment, use of bio-sourced materials, local sourcing. But they also bring a pragmatic approach.”

That pragmatism is seen in how they design: “They think in terms of natural air conditioning and airflow to reduce energy consumption. They’re drawing inspiration from traditional structures found across African cities.” Pedro notes how this isn’t just a return to the past but an evolution: “They’re industrializing and translating this know-how into modern, urban applications. Local architecture has a fundamental role to play.” 

The uniqueness of buildings and challenges of the continent

“A building is a signature,” says Pedro. “It’s a marker that lasts. Like fashion or gastronomy, you can make something beautiful and something good.” Real estate, he explains, remains a rare and strategic asset, essential for long-term impact, but still subject to volatility. “Across the continent, the needs are immense. Demographics and urban pressure make vertical, mixed-use, and adaptive development essential.”

Pedro doesn’t shy away from naming the obstacles. “We face real institutional challenges, building permits, legal certainty of land ownership and an enabling business environment. Land tenure disputes are also a major issue. These will take time to solve.” However, he sees one of AXIAN Properties’ strengths as being proactive. “We’ve secured a land reserve within our portfolio, which gives us the ability to plan long-term.”

On the financial front, he ties everything back to earlier themes: “The complexity lies in how we build the right financial structures. The scale and purpose of the buildings demand a creative, tailored approach to how these projects are funded.” 

AXIAN's contribution and impact on the ecosystem

“AXIAN must find its place in all this by leaning on its strengths,” Pedro affirms. At the heart of this strategy is efficiency, especially in reducing operational costs. “We’re committed to lowering energy expenses, and the rollout of 4.5 megawatts of solar capacity is a key step in cutting the running costs of our buildings.”

But hybridization goes beyond architecture. “All the services that give rhythm to a building’s life are just as essential, security, in-house maintenance, rental management, entertainment and lifestyle services. Today it’s sport and catering, but tomorrow it could include education or local retail.”

Pedro’s vision is clear: “A well-designed, well-built, well-managed and well-financed building is more than just another asset. It enhances the city, improves the lives of users, and stimulates the commercial ecosystem around it. When we get it right, we generate real, positive impact, not just for tenants, but for the broader urban environment.”

If you missed them, here's a selection of AXIAN news for you.

Kolda, Senegal | Kick-off for the NEA Kolda solar power plant!

AXIAN Energy has officially launched work on the NEA Kolda solar power plant, with the laying of the foundation stone at the Tankanto Escale site in southern Senegal. With an installed capacity of 60 MW and a 72 MWh battery storage system (BESS), this ambitious project is fully in line with Senegal's energy vision, which aims to achieve a 40% share of renewable energy in its electricity mix by 2030.

NEA Kolda will provide a lasting boost to the resilience of the national electricity grid, ensuring a secure power supply for more than 235,000 people. But its impact goes far beyond energy: it is a lever for social transformation, designed with and for local communities, rooted in the real needs of the population, promoting access to health, social and educational success, economic development, the promotion of sport and culture, and the management of climate change.

Visit of Medef

We had the honor of welcoming a delegation from MEDEF International who came to discover the AXIAN Group ecosystem. Discussions focused on our vision for economic development in Africa, as well as investment and collaboration opportunities.

S&P Global Ratings upgrade for AXIAN Telecom

S&P Global Ratings upgrade of AXIAN Telecom’s long-term credit rating to ‘B+’ with a stable outlook marks a significant achievement for our Group. This milestone reflects the strength of the strategy, the commitment of the teams, and the positive momentum across our key markets.

Congratulations to everyone at AXIAN Telecom for the dedication and engagement in helping shape a more connected continent.

EDF Renewables signs an agreement with CGHV Consortium

We have formalized the entry of EDF Renewables into the consortium of the Volobe Amont hydroelectric project, Compagnie Générale d'Hydroélectricité de Volobe – CGHV, alongside AXIAN Energy and Africa50 Group.

This strategic alliance brings world-class international expertise and strengthens our shared ambition: to provide Madagascar with reliable, sustainable, and sovereign energy, for the benefit of millions of Malagasy people.

New participation by AXIAN Investment

AXIAN Investment joins the First Circle of Africa Next, a curated network linking Africa’s top startups with global investors. With 24 startups supported and 33 funds across 69 countries, AXIAN is scaling innovation across Africa. Hassane Muhieddine: “It reinforces our commitment to backing visionary African entrepreneurs and connecting them with the right global partners to scale their impact.” Learn more: https://lnkd.in/dHNuh3en

Changing Africa is back with a special!

This live-recorded episode features a crucial discussion between our CEO, Hassanein Hiridjee, and Lionel Zinsou, former Prime Minister of the Republic of Benin and economist, with a live audience. They will dissect the ongoing discussions about the economic role of the USA in Africa and the impact of its policies on the continent. Tune in to this episode on all platforms.