𝐍𝐢𝐠𝐞𝐫𝐢𝐚, 𝐀𝐥𝐠𝐞𝐫𝐢𝐚, others to dominate Africa’s construction industry in 2025, says Afreximbank 

Afreximbank Research’s Trade Intelligence Solutions has revealed that Nigeria, Algeria, Egypt, Tanzania and Ethiopia are to dominate the construction industry in 2025. 

The arm of Afreximbank in its latest research report on the African Construction Industry outlook for 2025, noted that Africa’s construction industry is set to expand in the coming years from $179 billion in 2024 to $337 billion in 2034.

According to the report, the robust growth of the region’s construction market will provide significant project opportunities across a wide range of markets. 

“In the short term, growth in the construction industry will pick up moderately, with the value of Africa’s construction industry set to grow in real terms by 4.7per cent in 2025 and five per cent in 2026 up from an estimated growth of 4.2per cent in 2024. 

“This will be driven by loosening monetary policies in many markets and an improving macroeconomic environment,” the  report noted. 

The report stated that several fast-growth markets in East and North Africa are set to lead the region’s construction industry over 2025. 

“Over the long term, construction industry growth in African countries will be driven by factors including strong population expansion, accelerating urbanization, commodity investment and government backed industrialization policies,” the report added. 

Afreximbank report explained that resource sectors in Africa will also drive significant construction activity, however, it’s expected that #energy prices will underperform their 2022 peak over the short term hence stagger construction activity attributed to the energy sector. 

“Over the long term, energy prices are expected to remain high relative to the 2015-2020 period and this will benefit investments in hashtag#oil and natural gas projects notably, refineries in Angola, upstream oil production in Nigeria and liquefied natural gas (LNG) infrastructure in Mozambique. 

“𝐃𝐨𝐰𝐧𝐬𝐭𝐫𝐞𝐚𝐦 𝐨𝐢𝐥 𝐫𝐞𝐟𝐢𝐧𝐞𝐫𝐢𝐞𝐬 𝐚𝐧𝐝 𝐩𝐞𝐭𝐫𝐨𝐜𝐡𝐞𝐦𝐢𝐜𝐚𝐥 𝐩𝐥𝐚𝐧𝐭𝐬 𝐰𝐢𝐥𝐥 𝐜𝐨𝐧𝐭𝐫𝐢𝐛𝐮𝐭𝐞 𝐬𝐢𝐠𝐧𝐢𝐟𝐢𝐜𝐚𝐧𝐭𝐥𝐲 𝐭𝐨 𝐜𝐨𝐧𝐬𝐭𝐫𝐮𝐜𝐭𝐢𝐨𝐧 𝐠𝐫𝐨𝐰𝐭𝐡 𝐢𝐧 𝐞𝐜𝐨𝐧𝐨𝐦𝐢𝐞𝐬 𝐬𝐮𝐜𝐡 𝐚𝐬 𝐀𝐧𝐠𝐨𝐥𝐚, 𝐀𝐥𝐠𝐞𝐫𝐢𝐚 𝐚𝐧𝐝 𝐄𝐠𝐲𝐩𝐭. The mining sector will also require significant construction activity, particularly iron ore mining in West Africa and battery mineral production in Central and Southern Africa.”