African Transport Network is tracking 448 large-scale transport projects (road, rail,
and bridges) across Africa at all stages of development from announcement to
execution with a total investment value of US$430.3 billion. Nigeria, with 49
projects have the highest number of transport projects in the project pipeline,
amounting to US$48.3 billion, while Egypt, with 20 transport projects, has the highest value in the pipeline, amounting to US$52.9 billion
Economic growth in the Africa region remains high, particularly in
sub-Saharan Africa (SSA), which has some of the fastest-growing economies in
the world. The International Monetary Fund (IMF) and the African Development
Bank (AfDB) have both predicted that Africa's overall growth will improve in
2019 and 2020. However, the region's growth prospects continue to be
constrained by a lack of infrastructure to support the expansion in trade, both
within the region and externally. Closing the infrastructure quantity and
quality gap relative to the best performers in the world could increase the
growth of GDP per capita by 2.6% per year. Potential growth benefits would come
from closing the gap in the transport sector.
is tracking 448 large-scale transport projects (road, rail, and bridges)
across Africa at all stages of development, from announcement to execution,
with a total investment value of US$430.3 billion. Nigeria, with 49 projects,
has the highest number of transport projects in the project pipeline, amounting
to US$48.3 billion, while Egypt, with 20 transport projects, has the highest
value in the pipeline, amounting to US$52.9 billion, followed by Algeria (30
projects valued at US$37.9 billion), Kenya (27 projects valued at US$31.8
billion), Tunisia (nine projects valued at US$21.2 billion) and Tanzania (20
projects valued at US$16.7 billion). Investment rates in transport
infrastructure has been increasing, thanks to major continental initiatives
such as Programme for Infrastructure Development in Africa (PIDA) for
mobilizing resources to transform Africa through modern infrastructure.
When completed in their entirety, the tracked projects will total over
110,000km in length (54,110km for roads, 55,345km for railway and 599km for
bridges) of which 75,297km will be newly constructed, 29,197km will be upgraded
and 5,561km will have an element of both construction and upgrade,
crisscrossing the African continent.
Across the region, governments have paved the way for public-private
partnerships (PPPs) to fund a large proportion of projects in the pipeline. In
total, 52.4% of the total project pipeline by value is being publicly driven by
African governments allocating funds for constructing new roads and repairing
existing ones, whereas 33.3% of the total project pipeline is funded by various
joint financing arrangements between the public and private sectors. China has
made numerous investments across Africa to support its need for resources
becoming a major financier of key transport projects in the region. At least
five African countries have had their railway systems funded by China: Kenya,
Ethiopia, Angola, Djibouti, and Nigeria.
Based on the pipeline of projects tracked by, Chinese contractors are
involved in road and railway projects that account for 21.3% of the overall
project pipeline value. Other main foreign contractors are headquartered in
France (accounting for 17.7%), Turkey (accounting for 8.2%) and the UK
(accounting for 3.4%). Through various subsidiaries, the China Railway
Construction Corporation Ltd holds a leading position in terms of Chinese
involvement in the project pipeline. In total, the company has been or remains
involved in projects that have a total construction value of close to US$47.3
billion; it is followed by Power Construction Corporation of China (US$12.18
billion) and China Communications Construction Corporation (US$9.4 billion).
The March 2018 agreement to establish the African Continental Free Trade The area is a game-changer in the continent's ambition to boost intra-African trade
and spur economic development. On May 30th, 2019, 22 African countries ratified
the agreement, with Nigeria - Africas largest and most populous economy - close
to signing the agreement. This landmark agreement embraces more than a billion
people and a collective GDP of over US$2 trillion and includes most of Africas
largest economies, including South Africa and Egypt. Future freight transport
demand in Africa is tied to growth in international trade, which is expected to
grow sevenfold to 3.6 billion metric tons over the next 30 years, as countries
increase the value-added of their exports through processing, consumers with
rising incomes import more expensive goods, and manufacturing and mining
businesses import more expensive processing equipment. With this emphasis on
regional integration, African governments continue to think beyond development
within borderlines. This has placed the focus on the development of regional
economic corridors, interlinking highways, railways, and ports in the region,
hence providing connectivity between international, national and rural networks.
Tracking nine major corridors with 26 roads and railways that are being
proposed or are underway with a combined value of US$93.1 billion have a
variety of proponents, including national governments, donors and private
lenders.
Scope
- This report focuses on the transport sector in Africa, particularly
road and railway, their current scenario and the vast potential for development
as well as sizeable construction project pipelines.
Reasons to buy
- Gain insight into the key transport the construction projects in
Africa by the construction sector (road, bridge, and railway), and stage.
- Assess the current situation of road and railway in Africa and
construction investment in those sectors and financing methods.
- Understand the main trends driving overall construction growth.
- Identify top projects by sector, leading contractors and development
stage to better understand the competitive environment and inform your
expansion strategy.
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