Construction is booming
More than 322 mega construction projects, collectively worth more than $222 billion, are currently underway in Africa - 124 of which are in Southern Africa, valued at $83 billion.
This indicates the start of a construction boom on the continent with increased involvement of construction companies from the Brics countries, the second annual Deloitte report on African construction trends shows.
Companies from Europe and the US however still execute 37% of these projects, in many cases capitalising on former colonial ties. Chinese companies have a surprising low market share of 12% of the projects, although these are of higher value.
South African construction companies will find it hard to get a proper slice of the pie, because the competition is fierce and local mega public sector projects are draining their cash.
$40 Million Steel Plant to Be Constructed in Ghana
Three African business giants, Jospong Group, Scaw Metals Group and Guma Group, on Wednesday announced investing US$40 million in the Ghanaian economy.
The investment is tailored at stimulating growth in the local steel industry to produce metals to service companies in the West African region, especially those in the mining sector.
Read more: $40 Million Steel Plant to Be Constructed in Ghana
Kenya: Italian Build Sh36 Million School
AN Italian Couple who have invested heavily in Watamu spent more than Sh36 million on a school and water project at an island which had been neglected for decades within the Mida creek.
Guido Bertoni and his wife Valentina Moscheni, who own a luxurious resort in Watamu, set up a modern primary and secondary school at Kadina Island to enable the locals access education. They also facilitated a water project to enable the locals get fresh water for the first time since independence.
Glencore Xstrata to invest $100 million in South Africa’s coal sector
Miner and trading house giant Glencore Xstrata (LON:GLEN) is going full-speed with its plans to boost coal production in South Africa, and said it’s poised to invest close to US$100 million in new developments expected to supply nearly 60 million tonnes a year.
In a presentation to analysts, the company —which started trading on Johannesburg’s stock exchange last week— said Monday that first production from its projects pipeline was already “being implemented,” while the balance of new production would start coming on-stream by 2015.
Read more: Glencore Xstrata to invest $100 million in South Africa’s coal sector
