Get more Mail & Guardian
Subscribe or Login

Foreign direct investment boosts African megaprojects

Investment in African megaprojects was up 46% to $326-billion (R3.95-trillion) last year, led by increases in investment in energy and power, according to Deloitte’s latest African construction report.

To be included in the report, the project’s value had to be more than $50-million and to have started by June 1 2014.

Southern Africa led construction activity on the continent, accounting for projects worth $144.89-billion or 44.5% of the total value of projects, Deloitte said in a statement.

West Africa overtook East Africa, attracting $74.84-billion in projects, or 23% of the total projects on the continent by value.

Central Africa experienced a 117% surge in the value of construction projects, amounting to $33.21-billion, while North Africa saw the value of construction projects jump almost 36% to $9.12 billion.

Less projects, more value
East Africa experienced a moderate 10% decline in the value of projects, which totalled $60.67-billion in 2014. The number of projects qualifying for inclusion in the 2014 report fell to 257 from 322 the year before, but the total value of projects under construction increased from $222.77-billion in 2013 to $326-billion.

The bulk of the projects were led by the public sector (143), 88 were private sector initiatives and 26 were classified as public-private partnerships.

Energy and power accounted for 37% of the number of megaprojects undertaken in Africa last year, followed by transport (34%), mining (9%), real estate (6%), water (5%), oil and gas (4%), mixed use facilities (2%) and health care (1%).

The increase in infrastructure construction is driven by an increased output in natural resources, Deloitte said.

This has underpinned rising fiscal expenditure on infrastructure projects to drive international trade with the continent. At the same time, rapidly growing urbanisation and rising domestic demand has ushered in unprecedented foreign direct investment on the continent.

Major construction projects in Africa

Subscribe for R500/year

Thanks for enjoying the Mail & Guardian, we’re proud of our 36 year history, throughout which we have delivered to readers the most important, unbiased stories in South Africa. Good journalism costs, though, and right from our very first edition we’ve relied on reader subscriptions to protect our independence.

Digital subscribers get access to all of our award-winning journalism, including premium features, as well as exclusive events, newsletters, webinars and the cryptic crossword. Click here to find out how to join them and get a 57% discount in your first year.

Related stories

WELCOME TO YOUR M&G

If you’re reading this, you clearly have great taste

If you haven’t already, you can subscribe to the Mail & Guardian for less than the cost of a cup of coffee a week, and get more great reads.

Already a subscriber? Sign in here

Advertising

Subscribers only

Coko vs S ruling: The case against a subjective test...

Acting judge Tembeka Ngcukaitobi’s acquittal of a rape suspect has raised controversy, but legal experts say the fault lay with legislators and not the court

DA’s egregious sexual harassment case finally begins

The party is accused of protecting a councillor, who’s also implicated in R1.2m graft

More top stories

Coko vs S ruling: The case against a subjective test...

Acting judge Tembeka Ngcukaitobi’s acquittal of a rape suspect has raised controversy, but legal experts say the fault lay with legislators and not the court

Defend journalists and media freedom in Eswatini

Journalists are censored through cruel and illegitimate detention, torture and the removal of means to disseminate information to citizens crying – and dying – for it

It’s safe to open the beaches, says UPL after chemical...

Agrochemical producer UPL said it has paid R250-million in chemical spill clean-up

Former spy boss Fraser objects to Zondo’s nomination as chief...

The former director general of intelligence’s character assassination of the deputy chief justice is straight out of the Zuma playbook
Advertising

press releases

Loading latest Press Releases…
×