Market Size of Africa Construction Industry
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 58.42 Billion |
| Market Size (2029) | USD 74.81 Billion |
| CAGR (2024 - 2029) | 5.07 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Africa Construction Market Analysis
The Africa Construction Market size is estimated at USD 58.42 billion in 2024, and is expected to reach USD 74.81 billion by 2029, growing at a CAGR of 5.07% during the forecast period (2024-2029).
- The COVID-19 outbreak negatively impacted the market in 2020. Over the next two years, growth was expected to remain affected due to the economic downturn caused by the pandemic across Africa's residential, commercial, industrial, and institutional sectors.
- Despite near-term challenges, the medium- to long-term outlook remains positive. Over the short term, investment in the construction industry may be driven by government spending in the infrastructure sector.
- The African construction industry is the target destination for most large economies because of accruing benefits, such as the availability of natural resources, huge investment opportunities in energy and infrastructure, cheap labor, and a fast-growing consumer market.
- The country also has a beneficial business environment that includes favorable economic development policies, rising commodity prices, continued progress in the fight against corruption, and the adoption of democratic governments.
- Business confidence is predicted to grow due to the government's assistance for small and medium enterprises (SMEs). In November 2021, the National Treasury announced its plans to spend ZAR 2.3 billion (USD142.4 million) in the current FY (April 2021 to March 2022) to help businesses affected by the third wave of the pandemic and rebuild infrastructure damaged by the civil unrest that erupted in Gauteng and KwaZulu-Natal provinces in July 2021.
- The total value of registered building plans passed by larger towns increased by 37.5% Y-o-Y in the first 10 months of 2021, following an annual fall of 33.5% in 2020, according to Stats SA. In February 2021, the government announced the investment of ZAR 791.2 billion (USD 49 billion) in public-sector infrastructure investment over the Medium-Term Expenditure Framework (MTEF) term, which runs from FY2021/2022 to FY2023/2024. The transport and logistics sector received ZAR 287 billion (USD 17.8 billion), while the energy sector received ZAR 149.9 billion (USD 9.3 billion).
