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lightly over $222 billion is being invested
in 322 African infrastructure projects that meet the criteria of project value
above $50 million, according to a new African construction trends report by
tax, financial advisory and consulting firm, Deloitte.
This level of investment is substantial, and
holds a high expectation from stakeholders, according to Deloitte.
The top sectors in African infrastructure
development (rated by investment and value) are energy and power, transport,
mining, real estate, water, and oil and gas.
Of the total number of large projects under
construction as of June 1, 2013, 36 percent fall into energy and power, and 25
percent in transport. Infrastructure development is highest in
Southern and East Africa, followed by West Africa, according to the report.
In terms of the number of projects underway,
Southern Africa leads with 38 percent of projects, followed by East Africa with
29 percent and West Africa with 21 percent. North and Central Africa lag at 7
percent and 5 percent, respectively.
Looking at project ownership, 56 percent of
projects are owned by governments, while private investors own 39 percent. 36
percent of all funding for projects on the continent is provided by Development
Finance Institutions (DFIs), of which international DFIs account for 16 percent
and Africa DFIs 13 percent.
European/US contractors are building 37
percent of projects and Chinese construction corporations are building 12
percent.
Of the top 10 projects (by investment size)
in West Africa, five are in Nigeria, three in Ghana and one each in Guinea and
Liberia.
Nigeria’s construction projects include the
offshore Egina Oil Field, Dangote’s $9 billion oil refinery and petrochemical
complex, and Southern swamp associated gas gathering project.
Source: BusinessDay
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