The Africa construction market is expected to grow exponentially from the past year due to the government infrastructure investments boost construction activity is expected to drive the market growth.
Installed Base of Africa Construction (By Definition)-
The Africa construction market encompasses the construction industries focusing on the development, renovation, and maintenance of residential, commercial, and infrastructure projects. This sector is influenced by factors such as government investments in infrastructure, urban development initiatives, and the adoption of innovative construction technologies.
Use: The construction industry in Africa has seen significant growth due to rapid urbanization, infrastructure development, and a growing population. With increasing demand for housing, roads, bridges, and commercial spaces, construction companies are expanding to meet these needs. Key sectors driving this growth include residential, transportation, energy, and commercial infrastructure. Governments across Africa are also investing heavily in infrastructure projects to improve connectivity and boost economic development.
However, the industry faces challenges such as limited access to financing, skills shortages, and regulatory hurdles. Despite these obstacles, there are emerging opportunities for innovative construction techniques, sustainable building practices, and the use of new technologies such as 3D printing and green construction to address Africa’s infrastructure demands and create long-term economic growth.
Types: Construction comes in several types, each catering to different needs in residential construction, commercial construction, infrastructure construction, industrial construction, and institutional construction.
Here are some common types:
- Residential Construction:
The demand for residential construction in Africa is surging due to rapid urbanization and population growth. Projects include single-family homes, multi-family apartments, and affordable housing developments aimed at addressing the shortage of quality housing in urban areas.
- Commercial Construction:
Commercial construction in Africa is booming, with increasing demand for office buildings, shopping malls, hotels, and mixed-use developments. This growth is driven by rising business activity, foreign investments, and a growing middle class, particularly in major cities such as Nairobi and Lagos.
- Infrastructure Construction:
Infrastructure projects such as roads, bridges, railways, and airports are critical for Africa’s economic development. These initiatives improve connectivity, support trade, and reduce transportation costs, fostering regional integration and making the continent more attractive for international investment.
- Industrial Construction:
Industrial construction in Africa focuses on the development of manufacturing plants, warehouses, and energy facilities. These projects are key to boosting local production, creating jobs, and ensuring a steady supply of energy, especially with a growing need for sustainable power sources.
- Institutional Construction:
Institutional construction in Africa covers schools, hospitals, government buildings, and public services. These developments are essential to improving education, healthcare, and governance, contributing to the overall well-being of Africa’s rapidly growing urban and rural populations.
Market Developments
- In 2024, MycoHab Project (Namibia) launched the transforms invasive bush waste into mycelium-based building blocks, offering a sustainable alternative to traditional construction materials. Supported by the Shack Dwellers Federation of Namibia and Standard Bank, it aims to mitigate environmental impact and reduce housing costs
- In September 2024, BOXA completed its first project in East Africa using an innovative mass timber building system. The project, located near the Serengeti National Park, demonstrates the scalability of biobased construction materials in the region.
- In December 2024, Arab Contractors signed a partnership with Al Abrar Real Estate to establish Global Precast Concrete Industries in Oman. The new company will produce and supply precast concrete products, including for Al Wafa neighborhood’s 1,644 residential units in Sultan Haitham City. This move strengthens Arab Contractors’ footprint in Oman’s growing construction sector
- In December 2024, Arab Contractors signed a contract to construct the Uganda Heart Institute in Kampala. The project includes clinical, research, and accommodation buildings, along with full infrastructure works. Arab Contractors secured the deal based on its strong track record in Uganda, including major hospital, road, and bridge projects, earning it recognition as the country’s top contractor for seven years
- In June 2023, Arab Contractors Cameroon Ltd began rehabilitating the 22 km Olembé-Obala Interchange section of National Highway 1. The CFA22.7 billion project, co-financed by Cameroon and Bdeac, will expand the road to 2x2 lanes over 24 months. It aims to reduce traffic congestion at Yaoundé’s northern entrance and boost flow along a key regional corridor
Future Opportunities -
Africa is experiencing a significant surge in affordable housing initiatives, driven by rapid urbanization, population growth, and a pressing need to address the continent's substantial housing deficit. With an estimated shortage of over 50 million housing units, the demand for cost-effective and sustainable housing solutions has become a central focus for governments, private developers, and international organizations. Innovative construction technologies are playing a pivotal role in reducing costs and improving efficiency. Techniques such as prefabricated housing units, interlocking soil-stabilized blocks, and 3D printing are being explored to lower construction expenses and accelerate project timelines. For instance, Rwanda's Zero Carbon Affordable Housing project utilizes prefabricated units made from locally sourced materials, aligning with the country's green growth strategy.
For instance,
- In February 2025, Family Homes Funds Limited (FHFL) was recognized by the Statehouse Abuja as Nigeria’s leading affordable housing finance agency, underscoring its pivotal role in transforming the housing sector. Aligned with President Bola Ahmed Tinubu’s Renewed Hope Agenda, FHFL is dedicated to delivering quality, affordable homes and fostering economic prosperity. Through strategic partnerships and substantial investments, FHFL is not only facilitating homeownership for low- to middle-income Nigerians but also creating jobs, empowering local industries, and driving sustainable development across the nation
Africa Construction Market Leaders Operating in the Market
La Jolla Web
La Jolla Web is a leading player in the African construction market, specializing in innovative web-based construction solutions. The company offers project management services, streamlining construction processes with cutting-edge digital tools that improve efficiency, cost-effectiveness, and project tracking in large-scale developments across the continent.
CPI SARL
CPI SARL is recognized for its expertise in infrastructure and civil engineering projects across Africa. The company focuses on delivering large-scale road, bridge, and urban development projects, using advanced technology and sustainable practices to meet the continent’s growing infrastructure needs while promoting economic growth.
GETRAN Group
GETRAN Group is a prominent construction and engineering firm in Africa, known for its specialization in transport infrastructure, including roadworks and bridges. The company is involved in numerous public and private sector projects, supporting regional connectivity and contributing to the development of African economies.
SERTEM
SERTEM is a construction leader in Africa, providing a wide range of services, including civil engineering, infrastructure development, and environmental projects. The company excels in delivering cost-effective, high-quality solutions, with a strong presence in both public and private construction sectors across various African countries.
Leader Group Universal S.A.R.L
Leader Group Universal S.A.R.L is a key construction player in Africa, focusing on large-scale civil engineering projects and industrial construction. The company is known for its expertise in building infrastructure, including residential, commercial, and institutional projects, contributing to Africa’s rapid urbanization and industrialization.
