The value of construction projects in Africa valued above $50 million increased by 59.1% in 2018. This is according to the latest edition of the annual Africa Construction Trends report by Deloitte. The firm compiled 482 projects that had broken ground by June 2018, with a total value of $481 billion. The total value of projects increased by 53.3% year-on-year.

According to the report, East Africa had the largest number of recorded projects with 139 projects while North Africa accounted for the largest share of projects in terms of value at 31.5% or US$148.3 billion.

Egypt was the single country with the most projects with 46 projects accounting for 9.5% of projects on the continent, as well as the most projects by value at US$79.2 billion which equates to 17% of the continent’s value.

The majority of projects in this year’s report lie in the lower US$50m-US$500m value range with a total of 80 projects having a value greater than US$1.1 billion. Only 14 of those projects had a value greater than US$10 billion. The skew in distribution of projects towards lower values has been attributed to the difficulty in structuring, financing, and delivering mega projects on the continent.

In 2018, the transport sector continued to lead the way with almost 38.6% of the 482 projects tracked being either roads, bridges or rail, highlighting the role of China on the continent.

This was followed by the real estate sector which played an active role, making up 22.8% of the projects. Much of the activity in the real estate sector comprised of Industrial Construction, Commercial Construction, as well as Residential Construction.

Read; Value of Construction projects in Africa drops, report shows

In addition, the continent also saw an increase in the number and value of energy & power, and shipping port projects.

The report also highlights rise of foreign contractors led by the Chinese who undertook 33.2% of the projects built on the continent in 2018, edging out private domestic contractors who now account for just 23.9% of the projects. Other major builders on the continent include firms from the EU, Middle East, Asia and others.

According to the report, large-scale investment into Social Development and Education projects remains low at 0.1% (each) across the continent.

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