Tuesday, December 17, 2013

African Construction Trends Report 2013

The private company Deloitte just released its "African Construction Trends Report 2013," which has some surprising conclusions concerning China's engagement in this field.  The report evaluates $222 billion invested in 322 African infrastructure projects that have a project value over $50 million and had broken ground by, but not yet been commissioned at, 1 June 2013.  The top sectors rated by investment value were energy and power, transport, mining, real estate and water, followed by gas and oil.

Based on this size and time-limited sample, the results are surprising in view of all the attention in recent years accorded to China's involvement in African infrastructure.  Europe/US stakeholders funded 15 percent of the projects and Chinese stakeholders funded 10 percent of the projects in the sample.  This still places China as the most important bilateral funding source, but not the overwhelming player that it is often said to be. European/US contractors built 37 percent of the projects and Chinese construction corporations built 12 percent, again a lower percentage than is often portrayed. 


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