Business
Construction boom in Africa: Will it last?
A man pushes a wheelbarrow at a construction site in Soweto. PHOTO/Reuters
The construction industry is notorious for its susceptibility to boom-and-bust cycles; when capital is in ready supply and the appetite for new infrastructural projects is strong, the industry flourishes. However, in leaner economic periods, abandoned cranes and half-finished buildings graze the skylines. It is a story that Africa is all too familiar with: vaulting dreams and spending splurges have often been followed by wavering resolve and financial wreckage on the continent. But could the latest construction boom in Africa be different? Will this boom, both in construction and in the manufacture of building materials last?
The construction industry is certainly undergoing a boom period in Africa at present. The sector is experiencing strong growth in several countries across the continent: Nigeria’s construction industry is expanding at a solid rate: according to Business Monitor International, year-on-year growth climbed to 12.3 percent in 2011 and should be around 9.7 percent in 2012. It is predicted that the sector will achieve an overall value of US$ 3.3 billion this year and US$ 10.1 billion by 2021.
In Angola, the construction sector value is projected to increase by no less than 14 percent in 2012. Even in Zambia, the industry is also predicted to undergo an average growth rate of 9.3 percent from 2011 to 2015 and from 18 to 19 percent of gross domestic product (GDP). The large-scale projects, which are driving the growth of construction in Africa, are varied, exciting and potentially transformational. Many of these are taking place in the transport sector.
