The Africa Construction Report for 2016, released by Deloitte has mapped out various parameters and statistics in the construction sector for the entire African continent. According to the report, East Africa accounted for 15% of the total construction projects in Africa, amounting to 8.5% of the total value of projects last year. According to the report, the region which includes Kenya, Tanzania, Rwanda, Burundi, Uganda, Ethiopia, Eritrea, Djibouti, Somalia, Comoros and Seychelles, had 43 projects valued at US$27.4bn.
With 11 projects, Kenya had the largest number of infrastructure projects in the region, being 25.6% of the total. Ethiopia and Uganda each had 9 projects while Tanzania had 8 projects. In Tanzania, the suspension of the Bagamoyo Port Project which was valued at US$11, caused a significant reduction in the total value of projects in the East Africa region.
The three sectors; Transport, Energy and Power, and Real Estate respectively, accounted for the largest percentage of all the projects. Transportation projects took the largest percentage at 46.5% with 15 roads and bridge projects. Energy and Power made up for 25.6% of the projects amounting to over US$10.7bn of investments of which US$8.4bn went to renewable energy projects like the Grand Ethiopian Renaissance Dam, valued at US$4.1bn and this, the largest project in the region. Real estate made for 11.6% of the total projects.
Ownership of the projects belongs mainly to governments, at 86%, private domestic companies own only 2.3% while the remainder 11.6% are owned by companies from Britain, Germany, Singapore, South Africa and Lebanon. In terms of funding, the major sources of funds were China and African Direct Foreign Investments which proportionately provided 46.6% of the funds. International Direct Foreign Investments accounted for 18.6 % of the funding while Lebanon, Switzerland, Turkey, the US and UK together contributed 14% of the funds. The Government contributed 11.6% of the funds while the EU and Private domestic funds each contributed 4.7%.
Chinese companies were the most visible, building up to 41.9% of all projects in the region. Domestic companies were involved in 25.6% of the projects. Other countries with contractors in the region include the US, Japan, South Korea, Turkey and others. More of the the full report here: Africa Construction Trends Report
