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Report points to growth in African construction activity

31st January 2020

By: Tasneem Bulbulia

Deputy Editor Online

     

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Construction activity in sub-Saharan Africa will grow at an average rate of 7% in the next two years, international consultancy and construction company Mace’s latest cost update for the region indicates.

However, increasing domestic political uncertainty and government debt could cause headwinds for public-sector investment in major infrastructure projects

As a result, construction companies should be engaged early in the development process to plan ahead and deliver successful project outcomes.

South Africa faces weak private-sector demand and rising construction costs. Construction output is estimated to have grown by 0.9% in 2019, with growth expected to accelerate to 1.6% this year.

Construction activity in Ethiopia and Ghana should benefit in the next two years from commitments to strategic infrastructure delivery.

On the other hand, while Tanzania is projected to top the growth league table over the next few years as transport and power projects progress, political uncertainty could constrain the near-term outlook.

“The central outlook for construction activity across [the region] is cautiously positive, but the overall projection conceals wide variation between nations. South Africa continues to face significant headwinds, but the outlook for East and West Africa is brighter,” says Mace South and West Africa director Kelvin Byres.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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