South Africa & Nigeria lead in Infrastructure construction in 2016

Data from a recently released Deloitte African Construction Trends report 2016 has placed South Africa and Nigeria at the forefront of African countries in major infrastructure construction projects in 2016, totalling US$324bn..

The two countries alone had an investment value of over $140bn in 59 projects in major infrastructure construction projects for the year under review.

With 38 projects, Nigeria has the greatest number of projects 41.3% of West Africa regional total coming in at US$72.9bn while South Africa account for the largest amount of infrastructure and capital project activity in Southern Africa with 48.2%, the highest in Africa.

However infrastructure projects Investment in a Africa declined by 14% from the previous years which the report noted was due to weak global macroeconomic environment and low commodity prices, across the continent project were majorly concentrated on energy and transportation with education given the least attention.

“Whereas South Africa was previously the choice market in Africa for scalable operations, Nigeria now has a more attractive profile, offering scale and strong growth,” Deloitte said in the report.

Africa infrastructure report

“Yet the country faces some lofty hurdles if it is to realize its required infrastructure developments.”

Deloitte notes that South Africa has significantly more value in projects under construction or development than Nigeria does, showing that while a market may have scale and growth, it also needs a stable business environment, which Nigeria struggles with.

Africa infrastructure report

With 43 projects valued at US$27.4bn, East Africa – which includes Burundi, Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Rwanda, Seychelles, Somalia, Tanzania and Uganda – is home to 15% of construction projects in Africa, valued at 8.5% of the total.

West Africa has the greatest value of projects underway on the continent. West Africa has 92 projects, 32.2% of projects on the continent and 37% in US dollar terms. Benin, Burkina Faso, Cape Verde, Côte d’Ivoire, Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone and Togo are all included in West Africa.

“Guinea, the Simandou Iron Ore Project is worth 16.7% of the total value of projects in West Africa.”

Africa infrastructure report

The World Bank has estimated if Africa is to catch up with the rest of the world US$90bn annually through to 2020 to meet the continent’s wide infrastructure gap.