Africa Construction Market by Sector (Commercial Construction, Residential Construction, Industrial Construction, Infrastructure Construction, and Energy & Utility Construction), By Construction type (Additions, Demolition, and New Construction), By Region, Competition, Forecast and Opportunities 2028
Published Date: November - 2024 | Publisher: MIR | No of Pages: 320 | Industry: Infrastructure | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationAfrica Construction Market by Sector (Commercial Construction, Residential Construction, Industrial Construction, Infrastructure Construction, and Energy & Utility Construction), By Construction type (Additions, Demolition, and New Construction), By Region, Competition, Forecast and Opportunities 2028
| Forecast Period | 2024-2028 |
| Market Size (2022) | USD 42.71 Billion |
| Market Size (2028) | USD 59.33 Billion |
| CAGR (2023-2028) | 5.71% |
| Fastest Growing Segment | Industrial Construction |
| Largest Market | Additions |
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The Africa Construction Market size is estimated at USD 42.71 billion in 2022, and CAGR of 5.71% during the forecast period (2023-2028).
Government Initiatives to Drive the Market in the Forecast Period
Government initiatives play a crucial role in growing the Africa construction market through various measures. Firstly, governments allocate substantial budgets for infrastructure development, including transportation, energy, and social infrastructure projects. This increased investment creates a strong demand for construction activities, leading to the growth of the construction market. Secondly, governments promote public-private partnerships (PPPs) to finance and implement infrastructure projects. These partnerships attract private investment, expertise, and innovation into the construction sector. By leveraging the resources and capabilities of both the public and private sectors, PPPs facilitate the execution of large-scale projects and contribute to the expansion of the construction market.
Furthermore, in conclusion, legislatures smooth out administrative cycles and work on the simplicity of carrying on with work in the development area. Improving on techniques for getting grants, licenses, and endorsements lessens regulatory obstructions and energizes venture. This establishes a more business-accommodating climate, drawing in both homegrown and unfamiliar financial backers and invigorating development exercises. Besides, legislatures give charge motivations, sponsorships, and monetary help to advance development and foundation improvement. Tax breaks, reduced import duties on construction equipment and materials, and access to favourable financing options might be some of these measures. By decreasing expenses and working on the monetary possibility of development projects, these drives draw in speculation and cultivate market development.
Moreover, governments invest in capacity building and skills development programs for the construction industry. They support vocational training, education, and apprenticeship programs to enhance the skills of the local workforce. By improving the skill sets of construction workers and professionals, governments create a more competent and competitive construction sector, attracting investment and driving the growth of the construction market. Due to these aspects, government initiatives in Africa, such as increased infrastructure investment, promotion of PPPs, streamlined regulatory processes, tax incentives, financial support, and capacity building, play a significant role in increasing the construction market. These initiatives create a conducive environment for investment, stimulate construction activities, and support the overall development of the construction industry in Africa.
Chinese Investments and BRI Initiative Driving the Market Growth
Africa is the third-largest recipient of Chinese investment in the world, behind Asia and Europe. Chinese investment has increased throughout the world. However, following the minor decline in total Chinese investment, investment in Sub-Saharan Africa marginally decreased in 2024-2032. China has created a sizable commercial presence in most African nations, over the past 20 years. African nations have a tremendous chance because of its rich economic investment package, adaptable political strategy, and targeted, high-profile development projects under the Belt and Road Initiative (BRI). Africa's largest and most powerful ally is China. It has recently made millions of dollars in investments across the continent.
Nigeria recently got considerable funding for its railroads from China. Two significant standard-gauge rail projects—a coastal railway from Lagos to Calabar and a line from Lagos to Kano—are supported by China. Additionally, the nation is constructing railroads in Zambia, Ethiopia, and Kenya. For instance, the USD 475 million Addis Abeba Light Rail, which serves the city's 4 million population, received 85% of its funding from the Chinese Export-Import Bank. Even though oil and gas investments made up the majority of the energy investments, sustainable energy investments like hydropower were also included. Due to these factors, the Africa Construction market will grow in the forecast period.
Due to these factors, the Africa Construction market will grow in the forecast period.
Infrastructure Developments to Propel Market Growth
The construction industry in Africa is growing rapidly, driven by the continent's need for infrastructure development. As Africa modernizes and seeks economic progress, the construction industry is playing a vital role in implementing infrastructure projects that will have a positive impact on the continent. Initially, infrastructure development projects such as building roads, bridges, ports, airports, railways, and power plants create a substantial demand for construction activities. These projects require the expertise of construction companies and contractors, leading to increased opportunities for the construction market. Secondly, infrastructure development attracts foreign direct investment (FDI) from international companies and investors. This influx of investment not only brings in capital but also technology, expertise, and best practices. International companies often collaborate with local construction firms, promoting knowledge transfer and skill development within the industry.
Moreover, foundation improvement underpins urbanization by giving the vital comforts and offices. This incorporates building private complexes, commercial buildings, and social framework such as schools and clinics. The developing urban populace drives the request for development exercises, eventually boosting the development advertise. Made strides framework moreover improves network inside and past Africa, encouraging exchange and financial integration. Well-developed transportation systems, counting streets, ports, and airplane terminals, empower the development of merchandise and administrations, fortifying financial development. The development industry plays a vital part in building and overhauling these transportation framework ventures. Also, foundation advancement contains a multiplier impact on the economy, invigorating different divisions such as fabricating, genuine domain, tourism, and administrations. As these divisions develop, they produce extra request for development ventures, advance fueling the development showcase
Recent Development
- Approximately USD 7 billion agreement was signed in March 2022 by four Chinese and Algerian companies to establish an integrated phosphates project (PPI) in Algeria. Chinese companies Wuhuan Engineering and Tian'An Chemical, a producer of nitrogen and phosphate fertilizer, signed the agreement with Algerian companies Manal and Asmidal, a subsidiary of Algerian energy company Sonatrach.
- Kenya's smart city project, Konza Technopolis, is located at a short distance from Nairobi. The project received 2,000 hectares of land from the Kenyan government. The city could act as a primary centre for IT, research, communications, and education, according to the government's 2030 goal. Upon completion, this smart city is expected to cost USD 14.5 billion and provide roughly 20,000 employments.
- With more than 300 ongoing projects totaling USD 338 billion, Egypt dominates the market. South Africa ranks in second with active projects of roughly USD 207 billion, followed by Nigeria, which has existing and upcoming projects totaling USD 200 billion. One of Africa's largest producers of crude oil is forced to rely on petroleum imports since Nigeria's refineries are in a terrible state. The largest single-train refinery in the world, Dangote, is altering that narrative with an indigenous refinery that can handle 650,000 barrels per day. In the Lekki Free Trade Zone in Lekki, Lagos State, the refinery covers an area of 2,635 hectares. It reportedly costs more than 12 billion USD.
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Market Segmentation
Market Players
Major market players in the Africa Construction Market are
|
Attribute |
Details |
|
Base Year |
2022 |
|
Historic Data |
2018 – 2022 |
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Estimated Year |
2023 |
|
Forecast Period |
2024 – 2028 |
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Quantitative Units |
Value (USD Million) and CAGR for 2018-2022 and 2023-2028 |
|
Report Coverage |
Revenue forecast, company share, growth factors, and trends |
|
Segments Covered |
Sector Construction type Region |
|
Region scope |
South Africa, Central Africa, East Africa, North Africa, West Africa |
|
Key companies profiled |
China communications construction group ltd, China railway construction corp. Ltd, Sikhumba Construction (Pty) Ltd, SONATRACH, Dumez Nigeria PLC, General Nile Company for Roads & Bridges, China national machinery industry corp., TechnipFMC |
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Customization scope |
10% free report customization with purchase. Addition or alteration to country, and segment scope. |
|
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
|
Delivery Format |
PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
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