Kenya continues to lead the region in terms of infrastructure development with 20 roads, energy, harbors,water and energy projects. Ethiopia comes second with 12 projects according to a report compiled by consultancy Deloitte.
Large mega projects for the last three years occupied up to 20 per cent of all the total capital investment in Africa with a cumulative worth of US$568 billion, a big chuck of it coming from financiers and foreign aid such as the World Bank and even China.
According to the report transport infrastructural development took a bigger portion of Africa’s development budget kitty with 51 per cent of the projects being transport related projects. “Transport infrastructural development took up 51per cent of projects, energy and power (30 per cent), water (eight per cent) and social development (four per cent),” says the report.
The continent has also been treated to a new trend of infrastructural investment especially in the real estate sector countries like Kenya and Tanzania have recorded significant growth. Other upcoming sectors are entertainment, retail, modern office parks, hotel space and lifestyle facilities.
“The mix of projects has expanded to incorporate the retail estate sector where countries such as Kenya and Tanzania are experiencing significant growth in Retail, entertainment and lifestyle facilities, modern office parks, and hotel space.”
Mushrooming of urban centers characterized by a strong growing middle class economy that has richly embraced the use of green energy and open spaces has attracted foreign direct investments an area where investors are reaping huge yields from technology, real estate rentals, innovation and sustainability.
Of all the projects under focus, local governments funded 36 per cent of the construction projects with foreign contractors employed to implementing them, followed by China with 21 per cent while public private partnership claimed 13 per cent.