international
construction
july-august 2014
ECONOMIC OUTLOOK
24
African potential
includes pledges to invest US$3 billion in railways,
roads, and other infrastructure over 2009-19. This
will be supplemented by bilateral and multilateral
aid, also directed toward infrastructure.
Mozambique’s growth will be one of the fastest
in the Southern African region. It should see
strong foreign direct investment, primarily in the
natural resource sectors and a fast-paced public-
The updated and more detailed look at its
economy provided by the new numbers will make
money managers, investors and development
bankers pay more attention to the country. The
nation’s crude oil reserves stand at 33.3 billion
barrels, and Nigeria has the world’s seventh largest
natural-gas reserves, with 159 trillion cubic feet.
The development of a trans-Sahara pipeline will
increase natural gas production and exports.
South Africa’s pursuit of higher growth manifests
itself with a substantial part of the budget
allocated to infrastructure. Certain sectors will
be targeted to grow the economy at a faster rate
to absorb more of the unemployed and develop a
stronger manufacturing base.
These include an intense infrastructure expansion
in transport, water, energy, communication, and
housing, as well as a focus on agriculture, mining,
the green economy, and tourism. Infrastructure
investment will be the largest spending category
in the economy, with spill-over effects in various
sectors and asset classes.
Developments in natural resources prices will
dominate the outlook for sub-Saharan Africa,
as exports of primary commodities average
more than 90% of total exports across the
region. However, public and private investment,
especially in infrastructure, provides significant
opportunities for construction.
iC
IHS Global Insight
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Insight has over 3,800 clients in industry, finance,
and government with revenues in excess of
US$ 80 million, 5,100 employees and 50 offices
around the world in 30 countries. 80% of Fortune
500 companies are customers of IHS Global Insight.
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sector infrastructure programme, particularly
railway links, port expansions, and electricity
supply. These programmes will be financed
through public-private partnerships and increased
foreign borrowing.
Namibia is among the most politically stable
economies in sub-Saharan Africa. The country is
continuing the Targeted Investment Programme
for Employment and Economic Growth
(TIPEEG) to promote growth and job creation.
TIPEEG provides for building dams (US$
365 million) and rural electrification (US$ 100
million).
Other growth sectors include tourism, transport,
housing and sanitation. The development of
new mines combined with government-driven
investment projects will make the construction
sector among the fastest growing in the region.
Over the longer term, large-scale projects, such
as the Erongo coal-fired power project, the Kudu
power project, and the Baynes power project, are
expected to enhance Namibia’s power supply,
although most of these programs will only be
realised in 2016 and beyond.
Nigeria’s GDP rebasing indicates it is Africa’s
largest economy by a wide margin. Although
Nigeria’s economy looms huge, its development
level outside some scattered prosperous enclaves
remains quite low.
