African infrastructure spending dips in 2015
Africa’s infrastructure investment spending decreased in 2016 compared 2015, according to Deloitte 2016 African construction trends report.
In 2016, 286 projects worth $50 million and more were being built in Africa, down from 301 in 2015. The fall in overall capital value was $51bn — from a total of $375 billion in 2015 to a total of $324 billion in 2016.
The report, released on Tuesday, said there were 109 projects worth a total of $140 billion in Southern Africa in 2015. For 2016, project numbers had fallen to 85, worth $93 billion.
“Africa has seen a downturn in both the number and value of projects included this year, in contrast to previous years,” said Jean-pierre Labuschagne, Deloitte Africa infrastructure and capital projects leader.
“Global economic headwinds, low growth and lower commodity prices have all contributed to this,” he said.
The international consulting group said there was an uneven focus on infrastructure and capital project development. Projects included human settlements and associated water, sewerage, roads, electricity, schools and health infrastructure, and not just large construction works such as energy, dams, mines, ports and oil and gas facilities.
The report identified gross fixed capital formation on a continental and regional level, and compared data collected over the last four years.
Regionally, West Africa had 92 projects — the largest number and worth the most at 120bn. SA had the largest number of projects at 41 for a single country, followed by Nigeria with 38.
“Several large mining projects on the continent have been suspended,” Labuschagne said. These included three iron-ore projects worth a total of $30 billion. Meanwhile, the rout in oil prices had seen countries, including Nigeria and Angola, scrambling for foreign currency. This had led to Angola suspending the building of the $8 billion Lobito oil refinery.