Infrastructure Projects in Africa: 760 Opportunities Worth Nearly $620 Billion

Africa is becoming more connected with the development of physical and digital infrastructure across the continent. The African Continental Free Trade Area (AfCFTA) is emerging as a unique opportunity to promote regional trade. However, creating robust transportation networks across the world’s second-largest continent by land mass is no easy task. Developing and constructing over 760 large infrastructure projects in Africa, valued at nearly $620 billion, could be a good start toward achieving this goal.

Key Infrastructure Projects in Africa

Most of these 760 projects are 430 major road construction initiatives. This includes regional initiatives such as the Abidjan-Lagos Corridor in West Africa, as well as national projects like the Nairobi-Mombasa Expressway. The role of rail transport in Africa is increasing, with 173 rail projects currently in planning and execution stages. Maritime transport is a crucial and cost-effective option for moving cargo over long distances, not just between African countries but also beyond. Across Africa, 87 seaport projects are upcoming or ongoing. Air transport provides a valuable opportunity for the rapid movement of goods and people across the continent. Fifty-three upcoming and ongoing airport projects represent a significant effort to capitalize on this opportunity. The remaining projects involve large dry ports.

Regional Distribution

East Africa, which includes the East African Community and other countries, accounts for the largest number of projects with 43% of the total, although only 20% of the total project value. On the other hand, North Africa, with just 13% of the number of projects, leads in project value (30%). West Africa hosts 195 projects worth $168 billion, making it the second most active region in both value and number of projects. Central Africa (89 projects worth $66 billion) and Southern Africa (46 projects worth $70 billion) are relatively less active in infrastructure projects in Africa.

Country-Specific Highlights

At the country level, Egypt is investing the largest amounts of capital in transportation infrastructure projects with over $90 billion. The most populous country on the continent, Nigeria, follows with $79 billion. Morocco ($70 billion) and Tanzania ($37 billion) are next.

Major Developers and Contractors

It is not surprising that government entities are the major developers of infrastructure projects in Africa. Among the leading contractors are Chinese firms such as CCECC and China Henan International Cooperation Group, as well as major Egyptian firms like Orascom, the Arab Contractors, and Hassan Allam Construction. Julius Berger Nigeria is one of the leading contractors in the Sub-Saharan region.

Future Prospects for Infrastructure Projects in Africa

Expenditure on announced and ongoing projects is expected to increase in the coming years. ABIQ estimates current annual spending on transportation infrastructure projects in Africa at $266 billion, which is expected to rise to approximately $275 billion by 2025. These figures represent a tremendous opportunity for regional and global suppliers of construction materials and related services.

Source of the article: ABiQ