There is no doubt that construction industry in Africa is on a steady rise.Many contractors and investors have been keenly looking into ways of getting a share of the lucrative market.
According to recent research conducted by Deloitte many investors have been keenly putting their capital into the African market and the sweet part is they are ripping big from their investments.
Their research was based on the profits made by Key investors in the African construction industries which includes Roberts and Murray, Orascom, Arab contractors and even one of Africa’s largest property company Centum.
“Both private and public companies are under pressure to identify key construction areas to invest in Africa” the report says
According to the report, here’s the forecast for strong markets in the construction industry over the next five years:
• Single family residential will grow 17.9 percent in 2016, but it will taper down to an average 15 percent growth each year through 2017.
• Infrastructure will be key in any construction companies as many African countries are looking into improving the livelihoods of their citizens.
• As more industries come up there will be need for more companies to look into supplying key needs for the high demand that will be expected . i.e. raw materials.
• Lodging will grow 9.8 percent in 2016, and it will average 7.6 percent growth each year through 2020.
• Manufacturing will grow 6.5 percent in 2016, and it will average 6.9 percent growth through 2020.
• Health care will grow 3.9 percent in 2016, but it is forecast to ramp up in 2016 and 2020 to 8.4 percent and 9.1 percent growth each year respectively with an average five-year growth rate of 6.7 percent through 2017.
• Power and energy will grow 4.6 percent in 2016, but it is also expected to ramp up to 9.4 percent growth in 2020 with an average five-year growth rate of 7.4 percent through 2017.
• The weak markets in the construction industry are still those that depend mostly on government spending, such as streets and highways, water and wastewater, and conservation and development. Each one of those sectors is forecast to grow less than 3 percent on average each year over the next five years.
• The office building market is forecast to grow 3 percent in 2014 and ramping up to a 6.8 percent growth in 2016, according to the report.