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Chinese contractors dominate West Africa transport sector-report

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Chinese contractors are the most visible in the West African region with 30.7% of projects, followed by Private Domestic companies (16.0%), The Africa Construction Trends Report (2019) by Consultancy firm Deloitte has shown.

Similar to Chinese funders, Chinese contractors are heavily concentrated in the Transport sector.West Africa’s 10 largest projects account for 72.8% of the region’s total project value, with six of the 10 projects falling into the Transport and Shipping & Ports sectors.

West Africa has 75 projects currently underway, with a total US dollar value of US$80.9bn. The region accounts for 16.6% of all projects in Africa and 16.3% of the continent’s total project dollar value.

The number of projects in West Africa decreased by 28.6% from last year, while the value decreased by 2.4%. A number of small scale transportation projects were completed in the region, while at the same time large scale projects such as Nigeria’s US$18.0bn
Centenary City were added.

Nigeria holds the largest number of projects in West Africa with 21 projects (28%), valued at US$54.2bn (67.1% in US dollar value terms).

Ghana follows Nigeria with 16 projects, valued at close to US$14bn. These two countries combined account for 49.3% of all projects in West Africa and 84.4% of the region’s total project value.

West Africa’s 10 largest projects account for 72.8% of the region’s total project value, with six of the 10 projects falling into the Transport and Shipping & Ports sectors. Nigeria’s Century City – a real estate development – is the region’s largest project by value at US$18bn, followed by Nigeria’s Dangote Refinery at US$12bn. Six of the top 10 projects in West Africa are in Nigeria.

With a total of 33 projects, the Transport sector continues to have the largest number of projects in West Africa, representing 44% of total projects in the region. Projects in the Transport sector have a combined value of US$12.6bn (15.2% of the region’s total project
value). The Energy & Power sector follows, accounting for 20% of all projects in West Africa, and 18% in value terms.

Despite the Real Estate sector accounting for only 16% of the number of projects in West Africa, large-scale industrial construction projects continue to keep the sector the most valuable in US dollar terms (27.6% of the region’s total project value).

The majority of projects in the region are funded by governments (28.0%), followed by China (25.3%). Private Domestic and international funding follow with considerably lower
representation at 9.3% and 8.0% respectively.

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Construction work begins on Nigeria’s Centenary City

 

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