Africa
AFRICA (African nations are set to see minimal or in some cases negative GDP growth in the 3rd Q of 2023):
African counties such as Egypt, Ethiopia, Kenya, and some of the North African nations are forecast to experience a slow but steady improvement to their economies and construction sectors compared to the 2 – 3 difficult COVID-19 years prior.
The African Construction sector will continue to face challenges and marginal expansion as we move into the 2nd half of 2023. Increased oil, diesel, food, and energy costs are deterring future construction and economic growth in the vast majority of the 54 African nations.
The Nigerian construction sector is estimated to be $34 billion or close to 10% of the country’s GDP. The country is still challenged by the increasing cost of imported and domestic construction materials. The annual inflation rate in Nigeria is between 20% and 22%.
For the Nigerian construction sector, this is a serious challenge. The Nigerian construction industry is projected to grow steadily over the next 3 years. A number of oil and gas projects, the new Lagos airport, and a new rail link between Abuja-Itakpe are in the pipeline, in addition to a number of significant offices and hotels that should keep the Nigerian construction industry active for the next few years.
Nigeria may at last be self-sufficient in supplying its’ own oil/energy needs. Nigerian production of oil is now slightly more than 2.5 million barrels of crude oil per day, making it one of the top 10 oil producers. This bodes well for future industrial, infrastructure, and power-related CAPEX projects in Nigeria.
The South African construction sector activity remains restrained. South Africa Annual consumer price inflation was 6.8% in June 2023, and high unemployment and limited economic growth are the issues facing South Africa.
Africa was a big importer of wheat and barley from Ukraine and Russia. With these products currently in short supply because of the ongoing war, prices have started to rise. Experts are indicating that there will be a serious food shortage that will cause problems for many African nations in the next 3 to 6 months.
