Deloitte: African construction projects +15 per cent in 2015

Deloitte Tower Finished Glass Cube IIDeloitte's report discusses the prospects for Africa's construction projects. (Image source: Public domain/Commons)The Deloitte Africa Construction Trends Report shows a number of positive outlooks for construction projects across the continent 

The most recent Deloitte Africa Construction Trends Report for 2016, which shows construction trends over the last three years, reveals that qualifying projects rose by 17 per cent in 2015 to 301, up from 257 in 2014. 

The total value of these projects increased by US$50bn year-on-year to reach US$375bn.

Infrastructure projects must be valued at more than US$50mn and should have initiated construction or 'broken ground' for inclusion in the report, which draws its insights on a continental and regional level.

Projects are categorised into seven different types, the largest number being in the transport sector (37 per cent of all projects across Africa).

Energy and power construction projects are the second largest sector, accounting for 28 per cent of all projects.

Water, mining, oil and gas, and real estate projects account for the other sectors, at eight, seven, six and six per cent respectively.

A remaining sector is covered by Deloitte under 'other' projects. 

The Deloitte report also says 63 per cent of projects are older and ongoing, while 37 per cent are new, suggesting that there are good prospects for the future.

It concludes by stating that "rapid urbanisation and the influx of an expanding middle class continue to drive the need for infrastructural reform, expansion and upgrading, which will likely reflect in future projects coming to fruition".

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