Integrated infrastructure delivery
company AECOM has launched its Africa Property & Construction Cost Guide
2019/20 together with its strategic partner, the Bureau of Economic
Research (BER) at the University of Stellenbosch.
The Cost Guide forms part of AECOM’s
commitment to improving project delivery by conducting unique research into the
broader industry. “Our goal is to unlock the transformational change and
innovation required to move the industry forward,” Director – PCC, Africa Dean Narainsamy comments. “In each of the 30 editions, we’ve shared our
knowledge of Africa’s economy and construction sector, contributing to the
wider discussion on how to unlock investment opportunities across Africa.”
“The most well-read section in all
editions remains the building cost rates for South Africa,” comments Narainsamy. “Ranging from commercial
and retail developments, to industrial and healthcare facilities, we share our
insight into the inclusive building costs rates per metre squared, allowing our
clients to quickly estimate the building cost of potential assets and
ultimately its return on investment.”
The Cost Guide notes that there is an
ever-growing need to finance infrastructure on the continent. A number of
countries are now prioritising this, following a realisation of the importance
of industrialisation to maintain growth in their economies and diversify by
exporting goods and services. This will generate much-needed jobs for an
increasingly younger population. A developing industrial sector on the
continent also requires more infrastructure investment, particularly in power,
water, and transportation services.
Increased oil prices and the
stabilisation of commodity prices have strengthened the forecast for GDP growth
on the continent, with predictions of collective growth of 3% to 4% for
2019/20, and individual countries increasing by as much as 7% to 8%.
Although some growth is evident in the
construction sector in North Africa, this has been restricted to a few
countries that have stabilised following the Arab Spring. In sub-Saharan
Africa, there is steady growth in the infrastructure and construction sectors,
as well as in East and West Africa.
The Cost Guide concludes that Africa
continues to grow, with a steady increase of larger infrastructure and
construction projects coming to market that will provide the opportunities for
investment and service providers for 2019 and beyond.
AECOM employs 650 people in its Africa
operations at present, with a project presence in over 40 countries. “With experienced
professionals in multiple strategic locations, we understand Africa’s specific
infrastructure needs, as well as the challenges inherent in working on our
wonderfully diverse, vibrant, and complex continent,” Narainsamy concludes.
More information from Lara Lombard, Tel: (012) 421 3832 / Email: lara.lombard@aecom.com / www.aecom.com
