Malls as critical infrastructure

Cinema houses play a pivotal role in the entertainment industry, offering a gateway to escape reality and immerse oneself in the magic of storytelling. In Nigeria, the growth of cinema houses has been hindered by various challenges, one of which is the lack of adequate infrastructure. Recognizing the significance of malls as critical infrastructure for cinema development, Kene Mkparu, the Group Managing Director and CEO of Filmhouse Cinemas, sheds light on the importance of leveraging mall structures to foster the growth of the entertainment sector in the country. Mkparu emphasizes the symbiotic relationship between cinemas and malls, stating that the proliferation of malls is essential for the expansion of cinema houses. The cost of constructing standalone cinemas is exorbitant, making it more feasible for cinema companies to operate within mall premises. By coexisting within mall environments, cinemas benefit from the diverse tenant mix and foot traffic, leading to increased visibility and profitability. Despite the potential for exponential growth in the cinema industry due to the large population and growing middle class in Nigeria, the scarcity of malls remains a critical impediment. Mkparu underscores the challenges faced by mall developers, citing the high costs associated with building and financing these structures. He advocates for long-term financing solutions, such as pension funds, to reduce construction expenses and facilitate the creation of more malls across the country. In a bid to address the dearth of mall infrastructure and stimulate cinema development, there is a pressing need for government intervention and policy support. Mkparu calls upon the government to prioritize the retail sector and recognize the economic benefits of investing in mall construction. He elucidates the job creation potential of malls, citing an example where a single mall in a village could generate 2,000 employment opportunities, thereby bolstering local economies and enhancing social welfare. Moreover, Mkparu accentuates the catalytic role of consumer spending in driving economic growth, drawing parallels to the consumer-centric approach adopted by the United States. He underscores the immense potential of the Nigerian consumer market and underscores the necessity of providing enabling infrastructure to stimulate spending and boost economic activities in the country. To surmount the existing challenges and propel the cinema industry forward, Mkparu advocates for collaborative efforts between stakeholders, financial institutions, and regulatory bodies. The launch of innovative financing instruments, such as real estate investment trusts (REITs) and long-term funding mechanisms, is poised to revolutionize the retail and entertainment landscape in Nigeria. As the entertainment landscape evolves and consumer preferences shift, the convergence of malls and cinema houses presents a promising opportunity for economic revitalization and cultural enrichment. By harnessing the transformative power of infrastructure development and strategic investments, Nigeria stands to unlock new frontiers of growth and prosperity in the burgeoning cinema sector.