Infrastructure construction projects driving the market
African cities are changing with several major projects, ranging from magnificent skyscrapers to megacities built from scratch. These multimillion-dollar construction projects in Africa are giving its cities a much-needed transformation.
Developing infrastructure has been a focus of many governments to meet the needs and requirements of a growing population, making construction the largest sector in Africa. There are over 570 construction projects in Africa worth USD 450 billion. The energy sector has projects worth over USD 370 billion, followed by the transportation sector, with projects that include roads, airports, and railways worth USD 280 billion.Egypt leads the market with over 300 active projects worth USD 338 billion. With active projects worth around USD 207 billion, South Africa comes second, followed by Nigeria, which has ongoing and upcoming projects worth USD 200 billion.
Nigerian refineries are in a dismal state, leaving one of Africa’s biggest crude oil producers to depend on petroleum imports. However, Dangote is changing that narrative with an indigenous refinery capable of processing 650,000 barrels per day, making it the largest single-train refinery in the world. The refinery spans 2,635 hectares in the Lekki Free Trade Zone, Lekki, Lagos State. It is said to cost more than USD 12 billion.
Konza Technopolis is Kenya’s smart city project, a few kilometers from Nairobi. The Kenyan government allocated 2,000 hectares of land for the project. The city is part of the government’s vision for 2030 and may serve as the central hub for tech, science, telecom, and education. The estimated cost of this smart city is USD 14.5 billion, and it may generate about 20,000 jobs when completed. The first phase of the project’s horizontal infrastructure works was wrapped up in 2022.
Source: https://www.mordorintelligence.com/industry-reports/africa-construction-market
