Investing

These Are the Brand New Capital Cities Being Built Around the Globe

Drew Wood

Published: September 11, 2024 2:30 pm

Last Updated: September 11, 2024 3:20 pm

A country’s capital serves many different purposes. As the seat of government, it becomes the focus of attention inside the country and abroad. Foreign embassies may be located there. Dignitaries, investors, and tourists visit. So it serves as a center of commerce and investment. It also makes an impression about the whole country. If it’s clean, has reliable public services, and is architecturally interesting, it conveys a sense of modernity, prosperity, and power.

For a variety of reasons, some countries change their capitals, and sometimes just build a new one from scratch. The United States and Brazil are notable examples. In this article, we’re drawing attention to four new foreign capitals that are currently under construction. If you’re an international investor or a curious and adventurous tourist, keep an eye on these. 

24/7 Wall St. Insights

• Four countries are currently building new capital cities. Three of them are in Africa.
• Overcrowding and a desire to attract development to a different part of the country are two of the main reasons for building a new capital from scratch.
• Also: Discover “The Next NVIDIA”

1. Ciudad de la Paz, Equatorial Guinea

Equatorial Guinea is a former Spanish colony on the coast of West Africa. Its land area is about the same as Massachusetts, divided between a mainland section called Río Muni and two islands. The current capital is Malabo, located on the country’s large northern island, Bioko. 

In 2015, the country began developing Ciudad de la Paz on the mainland as its new capital and the government began moving there in 2017. Developers plan for an eventual population of 200,000. The city already has a university, luxury hotel, golf course, and a six-lane highway. Government buildings, a financial district, and residential zones are currently under development. The new location will facilitate trade with neighboring countries and draw population and development into the country’s interior away from crowded coastal settlements. 

2. New Administrative Capital, Egypt

Egypt’s government is currently building a new and as yet unnamed capital city 45 km east of Cairo, the current capital. It’s been criticized as an ego project by the country’s president, who promises a city of 5 million people, 700 hospitals and clinics, 2,000 schools, and even an amusement park the size of 4 Disneylands. 

The official purpose of the project is to relieve congestion in overcrowded and poorly-planned Cairo. Yet Egypt has already planted 21 new cities in the desert since 1976 that have only attracted a total of 1 million people rather than the 20 million planned for. The new capital is well underway but has already lost one of its major Chinese sponsors. 

3. Nusantara, Indonesia

Indonesia is making rapid progress on its new capital, Nusantara, which began construction in 2022. The new capital is projected to cost $35 billion. It is being designed for sustainability, with densely populated residential areas served by walking and cycling paths, a metro system, and a bus system. The project is expected to be fully completed in 2045.

Located on the island of Java, the current capital, Jakarta, is sinking due to overdevelopment on unstable soil. The government has allocated $40 billion to stabilize this problem. The site of the new capital is on Borneo, an island divided between Indonesia, Malaysia, and Brunei. Not only will this location help equalize development between the islands, but it will also bring more population and resources in case of future conflict with its rivals.

4. Ramciel, South Sudan

South Sudan is the world’s newest country, having become independent from Sudan in 2011. Currently, the capital is Juba, but the country plans to build a new capital at Ramciel. It’s not clear the area will be able to support large-scale construction, as it can be marshy during the wet season. The country hopes to set up a free trade zone about 50 km away with a large international airport that could become a regional trade hub. At present, the proposal is still being studied. Instability in the region and the generally poor infrastructure are impediments to attracting international investment.