Industry Events: March 2020

Industry Events: March 2020

Event:

Africa Energy Indaba

Date:

3 to 4 March 2020

Event Location:

Cape Town International Convention Centre, South Africa

Event Description:

The Africa Energy Indaba Conference will discuss, debate and seek solutions to enable adequate energy generation across the continent. Delegates, drawn from all continents, represent an unrivalled combination of industry experts, project developers, financiers, energy users, government officials and manufacturers.

Contact Details:

Tel: +27 11 463 9184
Email: info@energyindaba.co.za

Event Details:
Website
Registration

 

Event:

Dubai Property Show

Date:

7 to 8 March 2020

Event Location:

The Maslow Time Square, Pretoria, South Africa

Event Description:

Dubai Property Expo is the concept which brought state of the art more than 100 projects with the flexible plan and promotional offers. The show brings some of the biggest names in property, behind some of the safest and most secure projects in Dubai. While the show is specifically aimed at making it easier for peoples to invest in Dubai, anyone who is looking to invest in Dubai should attend. The show brings some of the biggest names in property, behind some of the safest and most secure projects in Dubai. So whether you are looking to invest in commercial property or looking for something residential, this is the right place for you.

Contact Details:

Tel: +971 55 774 6715

Event Details:
Website

 

Event:

Water Africa & East Africa Building and Construction

Date:

11 to 13 March 2020

Event Location:

Kigali Serena Hotel, Kigali,Rwanda

Event Description:

The event will encompass an exhibition covering products and services related to the water, sanitation, building & construction sectors with a seminar programme running alongside tackling subjects which are relevant to these sectors, the Rwandan economy, its people and infrastructure. We ensure that exhibitors reach the key decision-makers from the Rwandan Ministries, contractors and consultants, engineers, architects, planners, suppliers, NGOs, investors and developers involved in both sectors. Exhibitors will be showing the latest equipment and services in the field of civil engineering construction, building for commercial and industrial use as well as social housing. Exhibitors are invited to take part in the accompanying seminar programmes, which will be run in co-ordination with the Rwandan Ministries.

Contact Details:

Tel: +44 (0)7743 686321
Email: info@ace-events.com

Event Details:
Website
Registration

 

Event:

Building Information Modeling Africa Conference

Date:

11 to 13 March 2020

Event Location:

Johannesburg, South Africa

Event Description:

The Building Information Modeling Conference brings the right people together to drive the digitisation of construction processes. This will increase the quality and efficiency of the African construction industry.

Contact Details:

Tel: +27 (0)21 556 9253
Email: info@millasa.co.za

Event Details:
Website
Registration

 

Event:

Decorex Durban

Date:

19 to 22 March 2020

Event Location:

11 Walnut Road, Durban, Durban Exhibition Centre, South Africa

Event Description:

his prestigious showcase of the latest products and trends from top designers, décor professionals and industry experts is always hotly anticipated – and the 2020 instalment will be even bigger and better than before!

Contact Details:

Tel: +27 11 549 8300
Email: decorexafrica@reedexpoafrica.co.za

Event Details:
Website
Registration

 


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About Sasha Anderson

Millennial Mom + wife living the hash-tag life. Remember: If You Fail - Fail Forward

3D Construction

3D Construction

A very very interesting topic that I am happy to write about. I first heard of 3D printing about 4 years ago when plastic moulds and items were being made, only to find out after doing research, that the concept of 3D printing has been around longer than I have! The concept of 3D printing first came about in 1974.

As per Wikipedia, “1974: David E. H. Jones laid out the concept of 3D printing in his regular column Ariadne in the journal New Scientist. 1981: Early additive manufacturing equipment and materials were developed in the 1980s. In 1981, Hideo Kodama of Nagoya Municipal Industrial Research Institute invented two additive methods for fabricating three-dimensional plastic models with photo-hardening thermoset polymer, where the UV exposure area is controlled by a mask pattern or a scanning fibre transmitter. On July 2, 1984, American entrepreneur Bill Masters filed a patent for his Computer Automated Manufacturing Process and System (US 4665492). This filing record shows UPTO as the first 3D printing patent in history; it was the first of three patents belonging to Masters that laid the foundation for the 3D printing systems used today.”
There are many materials you can use when it comes to 3D construction such as plastic or concrete etc but what I am focusing on is 3D concrete construction

1) What is 3D Concrete Construction?

This is a revolutionary tool used in the production method where you can actually print/create solid objects from a digital source in the form of a picture that you have drawn up and uploaded to your 3D printer.

3D concrete printing is used to create or fabricate new shapes of construction components. This was not previously possible using ordinary machinery which now means that you can literally print your dream home.

L2B_3D_1

2) How does it work?

Basically what would happen is you would need to design your house. If you are familiar with CAD, you can design the house yourself or if not, then hire an engineer to assist you. You would upload the file to your printer and create a 3D model or blueprint. The printer will read the files and then get to work.
Instead of hiring a builder to construct each stage of the house from ground level upwards, the printer itself will start printing layers and layers concrete until the structure is complete. It takes your drawings and copies it into a 3D model, making it a reality.

You can also choose if you would like the printer to create or build the whole building in one go from the ground up or print multiple sections that fit together like lego pieces.

A normal printer like one at home or in the office would take ink, but a 3D printer has containers of raw materials such as concrete.

Honestly, when I first heard of 3D printing, they were building a small 3D printed bicycle bridge and having people test it.

L2B_3D_2

Then, they had gone onto building small one-bedroom, one level houses.

L2B_3D_3

 

Now watch this amazing video of the worlds biggest 3D printed building. This building is 2 levels and 640sqm.

3) How does this affect companies within the building and construction industry?

Well, 3D printers are rapidly being used in the construction industry and they are the future but in my opinion, they really are helping the construction industry for the better.

Remember that the 3D printer lays the framework. You can also build facades, roof panels, stairs with this but you would still need to employ infrastructure workers,  plumbers and electricians etc to finish the construction work

4) Advantages

Faster construction – it is said that one house can be built in 24hours. Time is money and who doesn’t like saving money?
Reduces worker fatigue
Increased safety
Fewer work injuries
Design absolutely any building you like
Labour cost savings
Greener – Eco-Friendly by using leftover materials from construction or mining sites
Weather conditions do not affect production
Higher accuracy
Fire resistance

Concrete printing has a lot of advantages over concrete casting. One advantage is that it does not require any formwork. Formwork can easily take up to 50% of costs in concrete construction because it is very labour intensive. Usually, you would have to build a structure and then take it down again. With 3D concrete construction, you would only have one movement. This would print layers without any formwork which saves a lot of time, money and materials.

In 3D concrete printing, they are now aiming for all components of the house to be separate and be easily detachable so that they can be repaired or replaced.

Architects Engineers and Contractors can now take a completely different design approach. They will no longer have to think in terms of straight beams, columns, solid slabs. They can freely experiment with different acoustics and curved shapes. Creativity is the main thing, more flexibility, new ideas and opportunity

5) Disadvantages

The machine itself is costly
The machines vary in size but most are quite large and can cost a heck of a lot to transport to the site
Digital errors can occur
Still costs to hire an engineer/architect to do the drawings.

L2B_3D_1

6) How much time and labour force does it take to set up the 3D printing machine?

Again this depends on the size and type of printer. Let’s talk about the Gantry model, this printer consists of 4 steel columns and three steel beams that enable the printhead to move within the boundaries of the structure. This would typically take up to 4 hours to assemble.However, there are also other types of printers with robotic arms on tracks which could just roll off the truck onto the site and start the printing process immediately. With regards to speed, some machines can build up to 250mm per second with a layer height of 50mm. I read online that a small house of 650 square feet, like a bachelor pad, takes less than 24 hours to build and could cost you around R60 000. R 60 000 for a one-bedroom apartment.

This technology is growing is faster and faster. The shift from prototyping to actual commercial application and implementation in the building industry is happening right now.

Did you know that in October 2019 it was said that Dubai aims to be the leading reprinting hub worldwide?

3D printing technology aids the construction industry but I don’t think it replaces it by any means. There is still a need for various professionals, consultants, contractors, vendors and suppliers. Here at Leads 2 Business, there are still many many project proposals, town planning and construction projects happening daily. Especially the new Mega-Cities and precincts using the “live-work-play concept”. These Projects are proposed for Gauteng and are available on our website.

Questions I would like to ask you – the readers:

1) Do you use a 3D printer at work?
2) How do you feel about 3D technology in the construction industry?
3) Does 3D concrete construction directly affect you?
4) When did you first hear about 3D construction?

Comment below and let me know.

Sources:
Marcorsyscom
Wikimedia
Wikipedia
Youtube
Flickr


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About Michelle Crosby

I started my journey at Leads 2 Business in the Directory Department in 2012. I was then promoted to the Private Projects Department in 2014 and was recently promoted to Projects HOD this year.

Abandoned Construction Sites in Gauteng – Why?

Abandoned Building / Construction Sites In Gauteng, Why?

A building is considered abandoned after just thirty days of being left empty. There are many abandoned building projects throughout South Africa, these buildings are not being utilized due to various reasons. An abandoned building is one that is considered to be empty and/or  in disrepair.

There are many setbacks and issues that may occur when building and developing a project that should be taken into consideration before the project even starts, most of the time projects and construction sites are abandoned because of the following reasons :

1.) Financial Problems.
2.) Due To Inexperienced Developers.
3.) Mismanagement And Mistakes.

Abandonment of buildings and construction sites could be a potential problem for South Africa due to the financial constraints within the construction and building industry. Tenders are being awarded to construction companies that are battling and have no funds to continue with the projects and this is yet another reason why construction is not being completed.

Here are a few buildings in Gauteng that have been abandoned and the reasons are as follows:

1.)  Khutsong Clinic – As per the contractor’s Client liaison officer, the Gauteng Department of Infrastructure Development has not paid the contractor and the contractor is experiencing financial difficulties. This project cost has been estimated at R65 Million.

2.) Carlton Hotel – The Carlton Hotel was considered to be one of the most prominent hotels in South Africa, hosting big names such as Nelson Mandela, Whitney Housten and Hillary Clinton. The hotel has been untouched and standing for over 20 years due to a lack of maintenance. The Carlton Hotel has over 600 rooms over 31 floors, and it closed its doors in 1997. Thereafter Transnet bought the once luxury hotel and even though there as been various plans floating around, the hotel still remains empty.

3.) Kempton Park Hospital –  It has been said that Kempton Park Hospital had been closed due to a shortage of patients, however in 2006 there was talk about re-opening the building and to renovate it, thus taking pressure off of Tembisa and Edenvale Hospitals. Construction was supposed to start in March 2013 and was meant to be completed in July 2014,  however contractors never started the work which was estimated have cost R 244 Million.  In 2017 it was reported that R127 million Rand had been set aside to demolish the Hospital.  However to date, Kempton Park Hospital still stands empty.

A large number of buildings are left empty and these buildings are not just little three-story buildings that are implicated, they are skyscrapers and huge 210-roomed hospitals where space has just been wasted. Tenders are being awarded to new development when these older and abandoned buildings and structures should be given preference and utilized before we build more. building    The buildings that stand empty are targets for criminal activities to take place and by standing empty and unused, they drop the value of the surrounding buildings and the area in general. If there is no-one monitoring the buildings or if there is no security in place, then this allows for squatters to move in and take over the building and also allows for pests to run around freely.

Incomplete construction has cost Gauteng over R620 million and it has been reported that the Gauteng Legislature’s Portfolio Committee on infrastructure development will be clamping down on “poor contractors’ workmanship” as there are tenders that have been awarded in 2017 that have not even started for renovating or building projects and this leaves 40 companies implicated. The projects pertain to new clinics, seven new schools and other important renovations that need attention in order to help the citizens of South Africa. Since this money has been paid over to the contractors, it is believed that fraud and corruption have been suspected.

Gauteng has identified a new “low-cost housing” opportunity and is allowing the private sector to turn them into affordable housing, The city is hoping to upgrade 2000 to 4000 informal settlement homes. This is a great way for the government to give back and I am sure this is exciting for the residents that stay in these buildings. Let’s hope this project materializes.

Sources:
Infrastructure News
Traveller24
Informal City
IOL
Business Insider
Flickr
Business Tech
City Lab
Times Live
Research Gate


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Industry Events: February 2020

Industry Events: February 2020

Event:

Investing in African Mining Indaba

Date:

03 – 06 Feb 2020

Event Location:

CTICC (Cape Town International Convention Centre), Cape Town, South Africa

Event Description:

Investing in African Mining Indaba gives an opportunity to meet with only investors, mining companies and other firms involved in the deal-making process like banks and brokers, all in one place. Apart from that, this is the only platform where mining company COOs and Project Directors discussed the latest disruptive tech and innovative investment strategies, It also has Panels and Workshops where key stakeholders came together to define a common vision for sustainable development in African mining industry.

Contact Details:

Tel: +44 (0)20 3855 9557
Email: info@miningindaba.com

Event Details:
Website
Registration

 

Event:

Expo Ethiopia Int’l Trade Fair

Date:

20 – 26 Feb 2020

Event Location:

Addis Ababa Exhibition Center, Addis Ababa, Ethiopia

Event Description:

Expo Ethiopia International Trade Fair is the Country’s only International Business-to-Business trade fair whose main focus is on Industrial, Agricultural and Services Sectors. Its beginning dates as far back as April 1995, the time the first Expo Ethiopia International Trade Fair under the Motto: “Development through Partnership” was held. Since that time on, the Chamber has organized 21 International Trade Fairs colorfully with the involvement and participation of a number of public and private stakeholders. The 24th Expo Ethiopia is no exception to the hitherto organized International Trade Fairs.

Contact Details:

Tel: + 91 8551918436
Email: info@internationaltradepromoters.com

Event Details:
Website

 

Event:

Oracle Construction and Engineering Day

Date:

25 Feb 2020

Event Location:

The Capital 20 West, Sandton, South Africa

Event Description:

The Oracle Construction and Engineering Day will feature an informative session that will focus on topics related to the organization and digitization of information about building and civil engineering works, including building information modelling (BIM), integrated project controls and facilities management.

Contact Details:

Tel: +27 11 319 4022
Email: mea-saas_sa@oracle.com

Event Details:
Website
Registration

 

Event:

BuildExpo Africa

Date:

24 – 26 Feb 2020

Event Location:

Millennium Hall, Addis Ababa, Ethiopia

Event Description:

BUILDEXPO Africa is the only show with the widest range of the latest technologies in construction machinery, building material machines, mining machines, construction vehicles and construction equipment. BUILDEXPO ETHIOPIA will bring you exhibitors from over 28 countries that are the finest in infrastructure development, with over hundreds of products, equipment and machinery on display. Prominent industry experts, stakeholders and decision makers will be in attendance, making it an ideal event to source new products, network and usher in new contacts and business opportunities.

Contact Details:

Email: feedback@expogr.com

Event Details:
Website
Registration

 

Event:

Oracle Construction and Engineering Day

Date:

27 Feb 2020

Event Location:

Century City Conference Centre, Cape Town, South Africa

Event Description:

The Oracle Construction and Engineering Day will feature an informative session that will focus on topics related to the organization and digitization of information about building and civil engineering works, including building information modelling (BIM), integrated project controls and facilities management.

Contact Details:

Tel: +27 11 319 4022
Email: mea-saas_sa@oracle.com

Event Details:
Website
Registration

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About Sasha Anderson

Millennial Mom + wife living the hash-tag life. Remember: If You Fail - Fail Forward

Construction Highlights for 2019

As the end of the year approaches… Wait! What? Is it that time already?

Yes, it is, before we know it’s crunch time again, Christmas décor is up at shopping malls…. while looking back at the year 2019 it was not just doom and gloom with the construction industry under immense pressure, let’s take a look at some of the construction highlights for this year.

How can I not start with the Tallest Building in Africa, situated in Sandton, almost near completion The Leonardo poses at 230m high in all it’s glory, boosting a mixed-use space with apartments, offices, landscaped gardens, a bar, and a crèche. It offers eight luxury penthouse suites topped by the three-level, 360° view.

PPA 16492

Sticking in the Gauteng region with some architectural flare we had the unveiling of the OR Tambo Mixed Used Development, Facilities include a fitness centre, canteen and creche. The floor area is estimated at 33 000m². The entire project is estimated at a total of R4.5 Billion. Phase 1 A is approximately R750 million.

PPA 23317

Another mammoth development underway is the Sandton Gate Precinct consisting of 6 phases including premium office space, convenience retail, modern residential apartments and a gym. This development also includes features such as piazzas & walkways, fibre connectivity and state of the art security. Oh and just by the way it’s a Smart Eco City development.

PPA 20383PPA 20393

 

Okay, I am definitely allowing Gauteng to get the better off me here let me move on to the Western Cape…

So let’s see what the Mother City has in store for us.

Harbour Arch embracing restaurants, coffee shops, cocktail bars, offices, residential apartments, and a motor dealership, levels of parking, an entertainment area & retail outlets located north-eastern gateway to the CBD.

PPA 21077

The Rockefeller consisting of 246 apartments and 13 storeys located smack-bang in the middle of the Cape Town.

PPA 21752

Moving to the shores of the East Coast we have the fabulous extension of the Durban Promenade, already an East Coast favourite amongst tourists and locals, the golden mile has been extended by 750m.

PPA 20379

Glorious establishments never seem to stop popping up in Umhlanga, The Radisson Blu Hotel Durban Umhlanga will have a total of 200 rooms and a range of world-class offerings including: State-of-the-art business facilities; exclusive fine-dining offerings; a large banqueting facility and other meeting rooms for 1200 people; rooftop bar and terrace; spectacular rim-flow pool deck; boutique gym; spa treatment rooms; artisanal roaster style coffee bar; and Islamic compliant facilities. There will also be a Presidential suite on the 16th floor.

PPA 11583

Well Ladies & Gentlemen, looking back at 2019, it has been nothing short of magnificent buildings coming up everywhere in our beautiful country despite the bad it gives us something great to look forward to.


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About Sharika Raman

I have worked for Leads 2 Business from January 2015. I started in the Leads 2 Quotes Department for Directory, in January 2020 I was promoted to the Deputy Head of Department for Leads 2 Quotes and in July 2021 I was promoted to the Accounts Department as a Debtors Administrator. I enjoy time with my family creating memories, I like to socialize but also enjoy time to myself so I try to keep a balance by indulging in some quiet time when I can. I see myself as a realist, amazing wife and awesome mom…I am sure my family would agree.

Common Mistakes in Bridge Construction

Common Mistakes in Bridge Construction

The best way to avoid bridge failures is to expect them to happen and develop a good risk management strategy. Don’t just wait to cross that bridge when you get there. This is the only way to protect the public from injuries, loss of life, property damage and destruction. Some bridge collapses are mysteries when they first happen. It isn’t until a detailed investigation is completed that the true cause is revealed.

I am going to list a few common mistakes in bridge construction:

1. Poor Bridge Maintenance: The collapsing of bridges could be prevented with more strict inspections and frequent routine maintenance. Rusted parts must be replaced, drainage areas cleared in case of natural disasters and reinforcements added especially when the use of the bridge has increased. The Connecticut Turnpike over the Mianus River collapsed due to the failure of steel pins that had corroded. I can not believe the lack of bridge maintenance! Can’t get over it.

2. Cheap Materials: A bridge is only as strong as what it’s built with. No one likes to spend money, but excessive cost-cutting can leave the bridge vulnerable to collapses. Not only is the bridge put in a more precarious situation, but saving money on materials can also lead to more costly repairs down the line.

3. Design Defect: While some bridges are constructed perfectly with high-end materials, they can still fail if the design is flawed. Bridges with a poor design could fail to hold enough weight or withstand natural conditions. There are bridges whose collapse was unpreventable before the bridge was ever built.

4. Natural Disasters: Today’s changing climate and the extreme weather events associated with it is causing chaotic weather. Most collapses happen on bridges that were built a long time ago when designers couldn’t imagine the kind of storms they’d have to withstand today. We can’t control the weather, but we can build structures strong enough to withstand such natural disasters. There is always room for improvement.

5. Accidents: Whether it’s a truck hitting a support post, a train falling off the tracks or a boat colliding into a foundation, accidents are one of the leading reasons bridges are damaged or come down. Bridge engineers must plan for all types of incidents. They will have to also bear in mind what the future holds for us. Will there be driverless cars, larger ocean tankers, and cruise ships, along with pilotless drones that could impact bridges in the near and distant future? I think it’s possible, most of it is already happening.

I am definitely no expert in any of these aspects, but keep these failures in mind next time you sitting in your car under a train bridge and the robot for you to go is red.

Sources:
Wikipedia
Civil Digital
Asset Works
Engineers Journal


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About Sonet van Wygaard

I started working at Leads 2 Business in 2014. I was part of the Tenders Africa team and have now recently moved to Private Projects. I love every second of it!

Industry Events: South Africa August 2019

Industry Events: South Africa August 2019

 

Event:

The Property Show Durban 2019

Date:

03 to 04 August 2019

Event Location:

Durban Exhibition Centre, Durban, South Africa

Event Description:

The Property Show, acquired by Private Property, is the ideal platform for anyone looking to further their property journey whether it’s buying, selling, renting or investing. The Show brings together all the brands under one roof and includes financial service providers, estate agents, developers, conveyancers and additional services.

Event Details:
Website
Registration

 

 

 

Event:

Design South Africa 2019

Date:

07 to 11 August 2019

Event Location:

Gallagher Convention Centre, Johannesburg, South Africa

Event Description:

Design South Africa is the perfect platform to source South African and international furniture and product design as well as lighting, interior design, surface and materials for the residential, commercial, hospitality and office sectors. It is geared towards doing business, writing orders and setting up new business networks and relationships.

Contact Details:

Tel: +27 (0)11 549 8300
Email: 100percent@reedexpoafrica.co.za

Event Details:
Website
Registration

 

 

Event:

Global Lift & Escalator Expo 2019

Date:

27 to 29 August 2019

Event Location:

Sandton Convention Centre, Johannesburg, South Africa

Event Description:

GLE Expo is an opportunity for global players in from the industry of elevator and escalator to explore Africa’s market potential, engage with prospective buyers, widen knowledge, network with regional players and expand businesses to this continent.

Contact Details:

Tel: +27 (0)81 275 2823
Email: segren@virgo-comm.com

Event Details:
Website
Registration

 

 

 

Event:

ICT Infrastructure 2019

Date:

28 to 29 August 2019

Event Location:

Emperors Palace, 64 Jones Road, Kempton Park, Johannesburg, South Africa

Event Description:

ICT Infrastructure 2019 will explore considerations and solutions across the entire ICT value chain with the goal of information sharing for the benefit of South Africa’s ICT infrastructure, and thus its citizens and businesses.

Contact Details:

Tel: +27 (0)11 543 7000
Email: charmaine.manicom@ee.co.za

Event Details:
Website

 


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About Sasha Anderson

Millennial Mom + wife living the hash-tag life. Remember: If You Fail - Fail Forward

Featured Company: WBHO

Who’s who in your Industry? This week we are featuring WBHO, Gauteng. Nelius Smith is Civil Engineering Estimator for the Roads & Earthworks Division of WBHO and you can read what he has to say here…

 


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About Michelle Herbst

I started working at Leads 2 Business in February 2014. I'm a Senior L2Q Account Executive for the Cape Town Region.

Project Infographic: Northern Cape

Project Infographic: Northern Cape

Get the inside scoop…

 

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About Marlaine Andersen

Leads 2 Business Advertising Co-ordinator and Digital Designer

How Funding affects Construction in Africa

posted in: General 0

Construction is a vital sector of any country’s economy because the physical construction of the developments become the backbone of the nation’s economy that enables goods and services to be distributed within and outside the country.

Furthermore, the functionality of the designs and construction of the developments have an impact on the productivity with which other business activities can be undertaken. Thus it can be said that the infrastructure of a country influences the competitiveness of enterprises and the country’s abilities to attract foreign investment, which is important in an era of globalisation as nations compete to attract foreign domestic investment.

However, with the general economic weaknesses Africa faces as a developing continent it means that we do not enjoy the realities of the above utopia.

Construction in Africa is predominantly funded through the following four Funding mechanisms

Government Funding
The Government is spending the “peoples money” to fund the project.

Private Funding
A project which is funded by a private developer which can be a private individual or company.

Loans
Financial assistance provided by an international bank or international financial institution to the government which is repayable after some time with interest. e.g.   a loan from the African Development Bank or a generous loan from generous ‘ China ’

Public-Private Partnerships
A contract between a government institution and a private company, in which the private company bears significant risk and management responsibility, and payment is linked to performance.

Regional Construction Focus

East Africa

With 166 underway projects on our website: East Africa accounts for 23.4% of projects on the continent.

Southern Africa

With 1229 underway projects on our website. The region accounts for 30.7% of all projects in Africa.

Central Africa

With 14 underway projects on our website. The region continues to be negatively affected by lower commodity prices, as all countries in the region are resource dependent. In total Central Africa is home to a few major public projects worth about US$9.8bn.

West Africa

With 66 underway projects on our website. The region accounts for 26.1% of all projects in Africa.

North Africa

With 50 underway projects on our website. The region accounts for 13.2% of all trackable projects on the continent.

Just taking into account the 1 525 projects that are marked as underway on our website out of the 6 412 captured,(with a cidb grading value 8-9. In stages between Conceptual – Underway) we can deduct that Africa requires an unprecedented magnitude of funds that individual countries do not have or just cannot afford to fully invest in. Furthering the dependency of international loans that we receive from the likes of China. This then minimizes the opportunities for local companies to make a sizeable splash in the construction pond.

The lack of funding or rather the ability for African nations to allocate more of their financial resources into construction has also cultivated a culture of non-payment of accounts. The amounts due to construction companies and a failure to make payment in time, lead to horrible liquidation or business rescue of established first-tier companies that boost the sector.

Furthermore due to the general economic weakness in the continent and a high need for infrastructure development means that we see more contracts that are uneconomical if work was to be given to local contracting professionals.

We further see delays in the completion of contracts within the scheduled times, if ever because of a lack of funds: which adversely affect the chances of any African nation attracting good and healthy direct foreign investment to boost the overall economy of the country. Furthermore, it affects local construction professionals because it becomes hard for them to afford to take the work.

Africa’s construction industry deficit is a cause of great distress. The problem of internal funding shortage and the large size of the infrastructure needs, require a lot of funding options. That we have! However, it would be great if we had ones that lessen the over-dependence on international loans because this allows excessive exposure and vulnerability of the continent and its resources.

Responsible lending and borrowing behaviour are required on the part of Africa and its development partners to avoid unsustainable external debt levels which are detrimental to Africa’s construction industry growth.

No matter what cause I pick for my topic, the prevalent effect seems to mimic a viscous airtime advance system cycle: You borrow airtime. Load airtime to pay back the service provider. Clear your debt. Be left with nothing. Then you have to borrow airtime again to survive and in the end, you have not looked after your own interests. In my opinion, the health and growth of the local construction scene by our own labour should be of main interest for the decision makers when funding the sector is concerned.

Concluding I have to admit, I would fail to propose a well developed, practically applicable solution model to the effects I have presented above. However as much as there are a whole lot of challenges surrounding construction operations in Africa, there is potential for growth. If we would just find suitable and positive investment strategies that will work for a developing continent, without harming the wealth of business knowledge, skills and labour we already have, in years to come the industry could be so well developed it would practically fund itself.

 

Sources:
George Ofori, Ph.D., D.Sc., Funding Construction Industry Development
Deloitte, Africa Construction Trend Reports
BDO South Africa, Saving the Construction Sector
African Business, Boosting development through sovereign wealth funds
Wikipedia

 


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About Minnie Zondi

I am an insanely optimistic ambivert that does everything from the heart instead of the mind. Deeply interested in people and matters that pertain to mankind.

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