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Wednesday, 28 August 2019

Deloitte: Egypt tops Africa in number and value of construction projects in 2018

Egypt topped Africa in the number and value of construction projects within a single country in 2018,according to Deloitte’s Africa Construction Trends Report (pdf), which looks at industry trends at the levels of continent, region and country. The report says Egypt saw a total of 46 projects, comprising 9.5% of the total number of projects in Africa during the year, at a total value of USD 79.2 bn (17% of the total value of projects on the continent).

Egypt’s projects are among the driving forces of sectoral growth in North Africa: The Tahrir Petrochemical Complex — expected to be the largest petrochemical complex in the Middle East — and the Dabaa nuclear plant are two of the most prominent projects in North Africa. Both are driving growth, the report says, with Dabaa being the largest project on the entire continent. North Africa in fact saw the greatest change in the number and value of projects of any region in Africa in 2018, with a 172.5% increase in projects, and a 92.3% increase in their total USD value.

Throughout Africa, China is playing a greater role: The economic relationship between China and North Africa in particular continues to grow as part of Beijing’s Belt and Road Initiative, with Egypt “leading Sino-North Africa bilateral relations,” the report says. Chinese investors are showing particular interest in the Suez Canal Economic Zone, the TEDA industrial zone in Ain Sokhna, and the port of Alexandria. Although governments continue to fund the largest share of projects across the continent, China funds almost one in every five and is also the most prolific state builder of projects.

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