Transport, energy projects contribute to 46% rise in Africa construction investment
Investment in African megaprojects increased by 46% 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 accounted for 143 projects, followed by the private sector’s 88 projects and 26 public–private partnership projects.
Energy and power made up 37% of the megaprojects in Africa last year, followed by transport at 34%, mining at 9%, real estate at 6%, water at 5% and oil and gas at 4%.
Mixed-use facilities made up 2% and healthcare contributed 1%.
The report said Africa’s infrastructural transformation was 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.