East Africa: The Land of Opportunities

July 11 , 2017

undefinedAccording to the “East Africa’s Building Boom” report commissioned by The Big 5 Construct East Africa, Kenya is one of the most forward thinking countries in East Africa with the International Development Association helping to fund over 30 projects worth an estimated $6 billion.

Kenya is witnessing economic growth of 6% annually making the nation heartbeat of the East African construction powerhouse.

Kenya dominates the top 10 construction projects in East Africa, which includes the $3.8 billion Mombasa-Nairobi Railway and the $2.1 billion Tatu City Project.

A deal at work between the country and the World Bank to afford a $150 million renewable energy project is also underway.

Currently, only around 25% of the 46 million population live in urban areas. This demand in the country’s construction shortfall will benefit and provide plenty of opportunities for companies that can offer fast and cost-effective housing construction methods.

Neighbours in the region are also keeping pace with urbanisation. The report adds examples of other growing markets in the region, indicating the key role of the construction sector in driving this growth.

Over the last decade Ethiopia has averaged a 10.8% growth per annum rate. The country’s Growth and Transformation Plan (GTP II) is feeding momentum to the country’s fastest growing economic status, the report states.

The government of Mozambique has committed to building 35,000 affordable houses by 2019. The country has accumulated investments of $2 billion to develop their transport system, which includes roads, bridges, ports and rail projects.

Tanzania is working to facilitate future growth by producing and distributing reliable power sources to newly built areas. There are also plans to set up a new rail link to Rwanda, valued at $1.1 billion.

Rwanda is developing the Bugesera International Airport, with a project cost estimated at $35 million. The government is also planning a $250 million affordable housing development fund.

Uganda is working on a municipal development project worth about $150 million aimed towards developing modern infrastructure, including roads, waste management and urban transport facilities.

The Big 5 Construct East Africa show is the official exhibition of Kenya’s National Construction Week and is co-located with the third annual National Construction Authority’s (NCA) Construction Research Conference and Exhibition (ACoRCE). It will be held from 1-3 November at the Kenyatta International Conference Centre.

 

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