The annual Africa construction report compiled by Deloitte shows that transportation, energy & power, and real estate continue to be the main drivers of the construction industry in the region. The total number of projects in East Africa rose significantly in 2018, by 96% with a corresponding increase in value of 167% from 2017.
The transport sector continues to be the largest sector in East Africa, accounting for 45.3% of all projects in the region and 26.6% in US dollar value terms. Energy & Power projects account for a significantly lower share of projects at 18.0% in the region and 21.1% of value.
Kenya had the largest number of projects in East Africa with 41 projects at a value of US$38.2m, followed by Ethiopia with 38 projects at a value of US$19.1m, the former having double the value of projects in Ethiopia.
East Africa’s shoreline has also attracted a lot of up activity in recent years. Shipping & ports accounted for 6.5% of all projects in the region and 21.4% in terms of US dollar value. One such port project, the Bagamoyo Mega Port in Tanzania, is the second largest project in East Africa with a total value of US$11bn, demonstrating the significant level of investment intrinsic to port projects.
Governments are still the dominant player in provision of infrastructure in East Africa, owning 84.2% of the projects while funding East African governments funded only 12.9% of projects in the region, with China and International DFIs funding 25.9% and 20.1% respectively.
China continues to be the most prominent builder of East African infrastructure, constructing over half of all projects. Private domestic firms built 11.5% of projects, while firms from other single countries collectively account for 12.2% of projects.
The 10 largest projects in East Africa make up 59.6% of the total value of projects in the region. Kenya’s Konza City, Tanzania’s Bagamoyo port and the Nairobi -Naivasha rail project were three of the largest construction projects by value in the East Africa region, carrying a total value $31.7 billion.