In Africa, Ethiopia will experience commercial and infrastructure construction expansion along with Kenya for the remainder of 2018 and going into 2019. Nigeria is set for a significant rise 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 2.4% range in 2019. 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 $65 to $75 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 $60 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.