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 |
Africa Construction Market has valued at USD 42.71 Billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 5.71% through 2028. In recent years, Africa's construction
market has seen substantial expansion. The construction industry has grown as a
result of the continent's rising population and greater infrastructure
spending.
In the upcoming years, it is projected that
the global construction industry would see constant revenue growth. Over the
next twenty years, it is anticipated to increase by a factor of two. By 2030,
it is anticipated that the building sector will have been grown to 14.4
trillion dollars from its 2020 level of 6.4 trillion.
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 2017. 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.
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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.
Market
Segmentation
The Africa
Construction Market is analyzed on the basis of Sector, Construction Type and Region.
Based on sector, the market is divided into Commercial Construction,
Residential Construction, Industrial Construction, Infrastructure Construction,
and Energy & Utility Construction. Based on Construction type, the market
is divided into Additions, Demolition, and New Construction. Based on region,
the market is divided into South, Central, East, North, and West.
Market Players
Major
market players in the Africa Construction Market are 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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Attribute
|
Details
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Base Year
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2022
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Historic Data
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2018 – 2022
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Estimated Year
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2023
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Forecast Period
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2024 – 2028
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Quantitative Units
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Value (USD Million) and CAGR for 2018-2022 and 2023-2028
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Report Coverage
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Revenue forecast, company share,
growth factors, and trends
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Segments Covered
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Sector
Construction type
Region
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Region scope
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South Africa, Central Africa, East
Africa, North Africa, West Africa
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Key companies profiled
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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
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10% free report customization
with purchase. Addition or alteration to country, and segment scope.
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Pricing and purchase options
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Avail customized purchase options to meet your exact research
needs. Explore
purchase options
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Delivery Format
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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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Report Scope:In this report, the Africa Construction Market has
been segmented into the following categories, in addition to the industry
trends, which have also been detailed below:
- Africa Construction Market, By sector:
- Commercial Construction
- Residential Construction
- Industrial Construction
- Infrastructure Construction
- Energy & Utility
Construction
- Africa Construction Market, By Construction type:
- Additions
- Demolition
- New Construction
- Africa Construction Market,
By Region:
- South Africa
- Central Africa
- East Africa
- North Africa
- West Africa
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the Africa Construction Market.
Available Customizations:
Africa Construction Market report with the
given market data, TechSci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
Africa Construction Market is an upcoming report to
be released soon. If you wish an early delivery of this report or want to
confirm the date of release, please contact us at [email protected]