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	The African construction market is expected to register a CAGR of 6.4% over the period, 2019 – 2024.
	Ethiopia will be Africa’s leading country with a (12.7 CAGR) over the period 2019-2024.
	Africa’s growth prospects in the construction sector are underpinned by favourable economic development policies.
	482 projects valued at USD 50 million or above each had broken ground by June 2018.
	As a region, East Africa has the largest number of recorded major construction projects with 139 projects.

Construction & Infrastructure

The African construction market is expected to register a CAGR of 6.4% over the period, 2019 – 2024. Regionally, Africa will become a major player in global construction over the next four years. There will be a steady acceleration in construction activity in Nigeria efforts (4.6% CAGR) to revitalize the economy, by focusing on developing the country’s infrastructure. However, Ethiopia (12.7% CAGR) will be Africa’s best performer, where its construction industry will continue to grow (albeit from a lower base than some of the continent’s other leading countries) in line with the country’s economic expansion.

The African construction industry is the target destination for many global investors. This is because of accruing benefits and/or advantages such as availability of huge natural resources, huge investment opportunities in energy and infrastructure, cheap labor, and a fast-growing consumer market. Also, there is a beneficial business environment that includes favorable economic development policies and rising commodity prices, in addition to continued progress in the fight against corruption and the adoption of democratic governments.

According to industry sources, 482 projects valued at USD 50 million or above each broke ground before June 2018. In total, these projects are worth USD 471 billion. It nearly doubled the total project value from 2017 which was USD 210 billion.

As a region, East Africa has the largest number of recorded projects with 139 projects. The outlook for Tanzania remains positive, with construction growth anticipated to be over 9%. The Kenyan construction sector is expected to average 8,5% growth per annum through 2024. The fast pace of growth in the region can be attributed to the construction of commercial and residential buildings, and on-going infrastructure construction projects. North Africa accounts for the largest share of projects in terms of value at 31.5% (or USD 148.3 billion). The projects included are spread over 43 of Africa’s 55 countries. Egypt is the country having the most projects with 46 projects (9.5% of projects on the continent) as well as the most projects by value at USD 79.2 billion (17% of the continent’s value), edging out South Africa and Nigeria, respectively.

As a sector, the Transport sector has 186 projects (22.7% of total project value), followed by power and energy projects (with a share of 24.4% of the total project value).

South Africa’s construction industry remains weak as construction spending has suffered, due to negative investor sentiment and slow economic growth. South Africa officially entered a technical recession in the second quarter of 2018. However, the construction industry increased by 2.3 percent, quarter on quarter, with non-residential building and construction work recording positive growth, but not enough to lift the country’s overall economic performance.

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In 2018, Egypt’s construction sector had more than 1,400 active projects collectively valued at USD 348 billion, according to a report by BNC Network. Currently, Egypt has the most construction of any African nation (46 projects) representing 9.5% of projects on the continent as well as the most projects by value at USD 79.2 billion. In Algeria, 99% of residents have electricity, 97% have piped water and 95% have sewerage – the highest percentage of any African country. To grow and maintain this, the government has mandated a USD 215 billion investment construction program with an emphasis on transport, health and water infrastructure. Based on reports by the Globe Newswire, the building construction industry in Nigeria is expected to record a CAGR of 13.9% to reach NGN 10,671.3 billion by 2024. The residential construction industry in value terms increased at a CAGR of 4.2% during 2015-2019.