Image source: Wikipedia / Chris7cn
Building Projects in Africa: A $812 Billion Opportunity with 1,000 Projects
Demographics are one of the major drivers of growth in Africa. From 2022 to 2023 alone, Africa added approximately 30 million inhabitants – the equivalent of the total population of countries like Malaysia or Saudi Arabia. What’s more, an increasing share of Africans live in cities. Between 2015 and 2023, the urbanization rate in Africa increased from 40.9% to 44.7%. In other words, over these 8 years, Africa’s cities grew by more than 160 million inhabitants (Source: Worldometer, 2024). These trends pose an enormous driver for building projects in Africa.
Types of Building Projects in Africa
About 1,000 large building construction projects worth $812 billion are currently upcoming or ongoing in Africa – as well as a myriad of smaller projects.
Unsurprisingly, housing projects account for the largest volume (339 projects) and value ($377.5 billion) of these projects. Many of these are major national housing programs (master plans) in countries such as Ghana, Ethiopia, South Africa, and Kenya. Mixed-use projects, many of which are new business parks or entire cities, follow with 231 projects worth $377 billion. Other notable categories include ICT projects, such as data centers, as well as healthcare projects – mainly major hospital developments. Several major office buildings, retail, recreational, and other types of buildings account for the remainder.
Regional Distribution
North Africa accounts for the largest number and value of building projects in Africa. In total, there are 341 projects worth $239 billion currently upcoming or ongoing in this region. East Africa follows with 282 projects worth $225 billion. West Africa and Southern Africa both represent approximately 20% each in the number of projects, as well as in their value. Central Africa is the least active region in large building construction projects on the continent.
Country-Specific Highlights
On a country level, Egypt and South Africa are by far the leading countries in project volume and value, accounting for about 50% of all building projects in Africa. Nigeria, Kenya, and Ghana follow. In line with Egypt’s dominant role, many of the region’s leading contractors such as Redcon Construction, Hassan Allam, and Orascom hail from this country as well. Some of the leading contractors from Sub-Saharan Africa include Raubex Group, and Nigerian firms Cappa and D’Alberto and ITB.
Future Prospects for Building Projects in Africa
In total, African countries are currently spending about $93.8 billion per year on these ongoing and upcoming projects. Though this amount may temporarily decline over the next 1-2 years, medium and long-term prospects remain strong. Due to the variety of projects in this sector, building construction is ripe with opportunities for suppliers from areas such as cement and steel, as well as more specialized products such as sanitary ware, hospital products, and many others.
Explore More
If you would like to explore more about projects in your region, market or area of interest, sign-up for ABiQ’s Free Trial or contact us at info@abiq.io. To read more blogposts about ABiQ’s key sectors, explore our articles about power, infrastructure, extractive industries, and water.