Infrastructure projects in Africa – 760 opportunities worth almost $620 billion

30 May 2024

Infrastructure Projects in Africa: 760 Opportunities Worth Almost $620 Billion

 

Africa is becoming more connected as physical and digital infrastructure is being developed across the continent. The African Continental Free Trade Area (AfCFTA) is turning into a once-in-a-lifetime opportunity to promote regional trade. However, creating strong transportation networks across the world’s second-largest continent by land mass is no easy task. Developing and constructing more than 760 large infrastructure projects in Africa worth almost $620 billion may be a good start to accomplishing this goal.

Key Infrastructure Projects in Africa

The largest share of these 760 projects are 430 major road construction projects. These include regional initiatives such as the Abidjan Lagos Corridor Highway in West Africa, as well as national projects like the Nairobi Mombasa Expressway. The role of railway transportation in Africa is increasing, with 173 rail projects currently in the planning and execution stages. Transportation by sea is a crucial low-cost option to transport cargo over long distances – not just between African countries, but also beyond. Across Africa, 87 seaport projects are currently upcoming or ongoing. Air transportation provides a valuable opportunity for the quick movement of goods and people across the continent. Fifty-three upcoming and ongoing airport projects are a major effort to capitalize on it. The remaining projects are large dry ports.

Regional Distribution 

East Africa, which includes the economically well-integrated East African Community as well as various other countries, accounts for the largest number of projects with 43% of the total, at 20% of the total project value. However, North Africa, with “only” 13% of the number of projects, leads in project value (30%). West Africa hosts 195 projects worth $168 billion, making it the second most active region in value and number of projects. Central Africa (89 projects worth $66bn) and Southern Africa (46 projects worth $70 billion) are relatively less active in infrastructure projects in Africa.

Country-Specific Highlights 

On a country level, Egypt is investing the largest amounts of capital into its transportation infrastructure projects at almost $90 billion. The continent’s most populous country, Nigeria, follows with $79 billion. Morocco ($69 billion) and Tanzania ($38 billion) come next.

Major Developers and Contractors 

Not surprisingly, government entities are the major project developers for infrastructure projects in Africa. Among the leading contractors are Chinese firms such as CCECC and China Henan International Cooperation Group, but also major Egyptian firms such as Orascom, the Arab Contractors, and Hassan Allam Construction. Julius Berger Nigeria is one of the leading contractors from the Sub-Saharan region.

Future Prospects for Infrastructure Projects in Africa

Expenditure on the currently announced upcoming, as well as ongoing projects, is likely to increase in the coming years. ABIQ estimates a current annual expenditure of $266 billion on transportation infrastructure projects in Africa, which will increase to approximately $275 billion in 2025. These figures represent an enormous opportunity for regional and global suppliers of construction materials and related services.

Explore Further

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, building construction, extractive industries, and water.

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