Investment in African energy, transport megaproject hits $326 billion
Investment in African megaprojects increased by 46 per cent to $326 billion in 2014, mainly as a result of higher investment in transport, energy and power infrastructure, advisory firm Deloitte’s third yearly African Construction Trends report has revealed.
Although the number of projects that qualified for inclusion in the 2014 report decreased to 257, from 322 the year before, the total value of projects under construction increased from $222.77-billion in 2013.
According to the report, the public sector was responsible for the development of most of the listed projects – 143 – followed by the private sector with 88 projects and public–private partnerships with 26 projects.
Energy and power made up 37 per cent of the number of megaprojects in Africa last year, followed by transport at 34 per cent, mining at nine per cent, real estate at six per cent, water at five per cent and oil and gas at four per cent.
Mixed-use facilities made up two and healthcare contributed one per cent.
Meanwhile, Southern Africa had led construction activity on the continent, with projects valued at $144.89 billion, or about 44.5 per cent of the total value of megaprojects on the continent last year.
West Africa attracted $74.84-billion in projects, or 23 per cent of the total projects on the continent, while Central Africa experienced a 117 per cent increase in the value of construction projects to $33.21 billion.
North Africa saw the value of construction projects increase by nearly 36 per cent to $9.12 billion but East Africa experienced a 10 per cent decrease in the value of projects to $60.67 billion in 2014.
The report highlighted that Africa’s infrastructural transformation was being driven by increased output in the natural resources sector, which supported rising fiscal expenditure on infrastructure projects to facilitate rising international trade with the continent.
Additionally, rapidly growing urbanisation and rising domestic demand in Africa had created a significant amount of foreign direct investment in the continent’s biggest and most dynamic economies.