{UAH} Africa’s construction industry: ON THE RISE -Bwana Bwanika ,what is your take on this?

Africa's construction industry: ON THE RISE                          

 

The case for investing in construction on the continent is strong, with the following factors contributing to this robust case: rapid urbanization, strong current and projected economic growth, and a rising middle class. Each of these factors is driving the construction sector on the continent.

THE DEMAND FOR HOUSING/BUILDING:-

Urbanization and housing: In 2010 Africa had 51 cities with more than a million inhabitants, and only one city – Cairo – with more than 10 million. By 2040, it is expected to have more than 100 cities of more than one million inhabitants and seven cities of more than 10 million.

The largest city is projected to be Kinshasa, where the population is expected to reach 24 million (PIDA, 2011) by 2040. These pressures are already being felt and in a bid to cope with this rising urbanization, entire new cities are already being developed such as Tatu City in Kenya, the City of Light in Accra and King City in Takoradi, Ghana accommodating 178,000 residents between them and being built at the cost of US$300 million. In Nigeria, there is the Greater Port Harcourt City and the modern Eko Atlantic City being built on reclaimed sea.

Indeed, demand for housing is growing across all price points. In Nairobi, for example, there is a demand for some 150,000 affordable new homes per annum at the lower end of the price spectrum, but with only some 30,000 units being built annually. Ghana, sits with a 1.6 million units housing deficit which is anticipated to grow to 3.6 million units by the year 2022 according to the Consumer Protection Agency of Ghana.

Mortgage loans are now becoming available in Africa.

Ghanaians, for example, are now able to more easily access 15-year mortgages for 18,000 CEDIS (US$9,245) and this is, in turn, creating opportunities for developers/builders.

 

THE OPPORTUNITY:-

 

Construction costs on the continent are high due to an insufficient supply of building materials.

Building materials are in high demand and are often imported and or not available.

AS YOU CAN SEE FROM THE ARTICLE ABOVE – AFRICA'S CONSTRUCTION INDUSTRY IS ABOUT TO BOOM!

BRICKS, BLOCKS, ROOFSHEETS & PVC PIPES ARE THE 4 MOST BASIC PRODUCTS NEEDED FOR CONSTRUCTION.

 

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