Africa Construction Market Size (2024 - 2029)

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).

Africa Construction Industry Segmentation

Construction is a very diverse industry that includes activities ranging from mining, quarrying, and forestry to constructing infrastructure and buildings, manufacturing and supplying products, and maintenance, operation, and disposal.

The African construction market is segmented by sector (commercial construction, residential construction, industrial construction, infrastructure (transportation) construction, and energy and utility construction) and by construction type (additions, demolition, and new construction, by region (Eastern Africa, Western Africa, Southern Africa, and Northern Africa). 

The report offers market size and forecasts for the African construction market in value (USD) for all the above segments.