African countries are forecast to see 2.7% GDP growth in 2019:
Ethiopia and Kenya will be the # 1 & # 2 countries in Africa for construction growth in 2019. Ethiopia is forecast to see 7.4% GDP growth in 2019, with Kenya projected to experience 6% GDP growth, this growth will be driven by housing, schools, hospitals, commercial facilities and infrastructure construction projects. Nigeria is set for a significant increase in construction spending in the next three to five years, assuming it can get its political house in order, the Nigerian population is forecast to grow to 250 million in the next ten years. Inflation in Nigeria is forecast to be 12% to 17% in 2019, Nigeria’s GDP is forecast to grow in the 1.9% to 2.2% range in 2019.
Egypt is starting to see some encouraging signs in its construction sector, 2019 GDP growth is forecast to be between 5.1% and 5.7%, however inflation is extremely high at 13% to 15%.
Cameroon, Cote d’Ivoire and Tanzania, are all forecast to experience above average GDP growth for 2019 in the 3% to 4% range. On the other hand, both South Africa and Nigeria, Africa’s two largest economies will experience slow or limited growth in 2019, with perhaps Nigeria performing better than South Africa. If oil remains in the $55 to $70 a barrel range there could be an uptick in Oil / Gas construction activity in Nigeria, Uganda, Equatorial Guinea and Cameroon, if oil prices retreat and stay below $50 a barrel the opposite will be the case.
A shortage of skilled workers both in construction and manufacturing will continue to stymie South Africa’s economic growth for 2019. The appropriation of farms owned by white South African farmers is a problem that needs to be solved by the South African Government. Depressed minerals / commodity prices continue to hold back the South African construction sector. Business confidence is considered to be at a near all-time low in South Africa, one of the major economies of Africa.