A new forecast will buoy African building material suppliers. Demand for construction aggregates across the continent is expected to remain strong, with a volume CAGR (compound annual growth rate) of 5.4% over the 2019-2029 period.
The prediction in a new report titled Construction Aggregates Market: Africa Industry Analysis 2014-2018 and Forecast 2019-2029from Persistence Market Research (PMR), a leading global business market intelligence firm, is based on several key factors, with the rapid pace of urbanisation the key demand driver.
PMR cites World Bank figures for 2016 showing that urban population growth in Angola (+3.52%), Ethiopia (+2.85%), Nigeria (+2.43%), and South Africa (+2.1%) was above the African average of 2.09%. PMR states that such steady growth in these developing economies is expected to increase infrastructure development activities. Governments across these emerging countries are investing huge amounts in large-scale construction projects to strengthen commercial infrastructure and transport in their respective economies. This is expected to, in turn, create significant opportunities for public-private partnership construction projects in the region.
Furthermore, countries such as Ethiopia, Tanzania, and South Africa are said by PMR to be gradually shifting their focus towards developing themselves into service-driven economies. This shift in focus is expected to promote commercial construction activities in the region, creating opportunities for infrastructure-related investments.
