AFRICA (African nations are set to see minimal or in some cases negative GDP growth in the 1st Q of 2024):
Africa’s population is forecast to grow to more than 2.5 billion in the next 25 years, from the current 1.2 billion, this growth will fuel the need for all kinds of construction projects across Africa’s 54 counties.
Africa’s construction market is forecast to be in the $75 to $85 billion range in 2024.
The African Construction sector will continue to face challenges and slow growth in 2024.
Escalated oil, diesel, food and energy costs are deterring future construction and economic growth in the vast majority of the 54 African nations.
Egypt will construct one of the largest wind farms in the middle-east valued at more than $7.5 billion by 2027. Also in the construction pipeline are plans to build a new nuclear plant, upgrades to Egypt’s Petro-Chemical installations and new railroad facilities.
Ethiopia construction industry is estimated to be in the $50 to $60 billion range as we move into 2024. Ethiopia’s construction sector is developing with a good number of infrastructure related projects in the pipeline, the construction industry is estimated to grow by 5% to 6% in the next couple of years.
Nigeria’s new 650,000 barrel a day Dangote refinery recently came on stream with its first crude oil loading. Nigerian’s construction sector is forecast to grow by 3% to 5% in 2024, high inflation remain a continuing challenge. Nigeria is still challenged by the increasing cost of imported and domestic construction materials. The annual inflation rate in Nigeria is between 18% and 22%. For the Nigerian construction sector this is a serious challenge.
The South Africa construction sector is forecast to grow by 2.2% to 2.6% in 2024, high unemployment and inflation continues to be a significant problem.
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 or 3 difficult COVID previous years.