Africa’s construction industry is experiencing a significant upswing. The project and tender services of Leads 2 Business help business owners position their companies to maximise the opportunities presented by the infrastructure development boom across Africa.
The construction landscape in Africa has shifted dramatically in the last 10 years, staying ahead requires your business to be flexible and open to challenges.
In South Africa there has been an upswing in the construction industry outlook with the FNB/BER building confidence index breaking through the key 50 point mark for the first time since 2007 Q4, the slower growth in residential building is being offset by sustained growth in non-residential building work. An increase in architect and quantity surveyor activity suggests that the recovery in the building sector has not lost momentum.
Presently, the market is favouring the world’s second largest continent with at least 223 billion dollars’ worth of mega projects already underway in Africa.
Standard Chartered Bank is forecasting that Africa will grow by 7% pa over the next 20 years and the International Monetary Fund projects that between 2011 and 2015, seven of the ten fastest growing countries globally will be African.
In Ethiopia the concrete skyline of Addis Ababa is dotted with cranes and scaffolding, sandy tracks are being dug up to be replaced by paved roads, the construction boom, funded by both public and private sectors is being driven by the country’s rapid economic growth. Reuters reports that Africa’s middle classes are growing, providing the backbone of an economic revolution that is attracting billions of dollars of foreign capital and changing the face of the poorest continent.
Further afield, Tanzania and Burundi have recently signed a Memorandum of Understanding for the joint construction of a 195km railway line worth TSh 1 Trillion (over 1 billion Rand), whilst Kenya plans on borrowing $2 billion to refinance an existing loan of $600 million to fund the construction of infrastructure projects.
Positioned for Opportunities
“This is all positive and upbeat news, indeed” states Victor Terblanche, CEO and founder of project and tender research company, Leads 2 Business “to benefit, you need to position your business, be prepared and know when to act by staying abreast of industry changes and by knowing what’s in the pipeline. With careful planning, your business will be positioned to grasp the opportunities presented by the infrastructure development boom across Africa.”
Leads 2 business researches project and tender information and is strategically aware of the significant fluctuations within the industry. Construction developments in Africa make up a substantial percentage of the project and tender notifications we publish and in the last few years we have seen a steady increase in the subscription to our Africa project and tender services. We actively research in 25 out of the 57 countries in Africa and remain flexible, so as and when the need is present and significant, we add new regions. Last year we published over 53 000 tenders from Africa specifically related to construction.”
“Obviously one needs to do one’s research and be mindful, business models and methods differ vastly from country to country and you don’t want to be caught on the back foot of your decision, but in saying that I do not believe we can afford to pass up opportunities because of scepticism of the African market. There are opportunities out there, you just need to be informed and in a position to take them” concludes Terblanche, “and this is where a niche construction industry resource such as Leads 2 Business plays a pivotal role.”
For more information on Leads 2 Business, please visit www.L2B.co.za