Governments largest developers of Africa’s infrastructure projects
Governments remain the single largest developers of infrastructure projects – and own between 57% and 90% of tracked projects – across Africa, the 2017 edition of Deloitte’s ‘Africa Construction Trends’ report has found.
The report, released on Wednesday, includes 303 infrastructure projects valued at $50-million or above, that have broken ground on the continent since June 1.
In total, these projects are worth $307-billion.
“Governments that invest in enabling infrastructure are seen as more proactive and tend to attract more investors, ultimately making them more likely to achieve economic and export diversification objectives,” said Deloitte Africa infrastructure and capital projects leader JP Labuschagne.
However, only seven of Africa’s top 20 projects under construction are likely to be completed on time.
Globally, nine out of ten megaprojects, defined as having a value over $1-billion, run either over budget or over time, with emerging markets, marred by weaker governance institutions, leaning towards significant time and cost overruns.
“Government-owned projects are the worst offenders, with 83.3% of projects delayed. Three-quarters of privately owned projects are on time. This shows a consistent pattern of overruns compared with global projects,” he explained.
The report also showed that Southern Africa was home to the largest number of projects, at 93, while West Africa remained the region with the largest share of projects in terms of value, worth $98.3-billion.
South Africa has the most projects, at 44, while Nigeria tops the list in terms of project value, at $69.1-billion.
The report further highlighted the low levels of large-scale investment into social development projects, with only 1.2% of total investment going to the water sector and less into education.
“Between 2016 and 2017, there were two fewer energy and power projects in Africa and three fewer healthcare projects,” Labuschagne said.
The transport sector accounted for more than half of the projects this year.
“It would be prudent for governments across Africa to increase investor confidence by committing to more large-scale development projects,” Labuschagne concluded.
Comments
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation