Construction in Africa is driven by megaprojects and social housing
In 2018 the African construction industry saw a real boom. with the number of projects increasing by 60%. del 60% per numero di progetti. Egypt is the country topping the rankings.
According to the Africa Construction Trends 2018 analysis by Deloitte, the African construction industry saw a real boom in 2018 with respect to the previous year, with the number of projects increasing by 60% from 303 to 482 and reaching a total value of $471 billion (+53%). The countries topping the rankings in terms of number and value of projects were Egypt, Kenya, Ethiopia, South Africa and Algeria.
Egypt stands out in particular for its New Capital, a city in the desert to the east of Cairo which is planned to be opened in mid-2020. The authorities intend to transfer all the offices and buildings used by the government, central administration and parliament to the pharaonic new town (700 sq. km and 6.5 million inhabitants) within three years. The masterplan also includes an international airport, a technology and innovation park, healthcare facilities and 40,000 hotel rooms. The other megaproject under construction in Egypt is the New Al-Alamein City located on the country’s northwest coast. With an investment of $337 billion, including $59.6 billion financed by the government, the new “multi-million-dollar eco-city” will become Egypt’s new riviera with extensive tourism, residential, agricultural and industrial areas.
In Morocco, the second stage of a major infrastructure project was launched in June 2018. Called Wessal Bouregreg, it will extend along the river Bouregreg between the capital Rabat and the neighbouring city of Salé and will cover a total built area of around 875,000 sq.m. The development will include residential buildings (4,200 housing units), commercial areas, offices, sociocultural and leisure centres, healthcare facilities, car parks and hotels. It is due to be completed in 2024 at a total estimated cost of 786 million euros and will create almost 10,000 jobs.
Kenya and Nigeria are both involved in major social housing projects. The Kenyan government has signed an agreement with the United Nations Office for Project Services (UNOPS) to build 100,000 low-cost housing units as part of a broader plan to build 500,000 new homes by 2022 for an investment of around $13 billion.
In Nigeria, the federal government has planned investments worth around 1.2 billion euros with the aim of reducing the country’s housing deficit for the less affluent segments of the population. Moreover, the governor of the state of Lagos has announced a project to build a new city in the north west quadrant of the Lekki Free Trade Zone, adjacent to the future international airport and the region’s largest deep-sea port. The planned $249 million investment will involve the construction of housing for 150,000 people, commercial buildings, offices, schools, healthcare facilities and hotels and an industrial and logistics park.