- Governments across Africa are prioritizing infrastructure projects like roads, energy, and transportation to boost economic growth. Major investments are coming from international partners, especially China, driving demand for construction materials and expertise across both urban and rural regions
- Rapid urbanization and population growth are fueling demand for affordable housing and urban infrastructure. This is creating opportunities in residential, commercial, and social infrastructure development, particularly in cities like Lagos, Nairobi, and Johannesburg
- African nations are increasingly relying on public-private partnerships to fund and manage large-scale construction projects. These partnerships are crucial in addressing funding gaps while introducing modern construction practices and global players into local markets
- For instance, In March 2025, Saudi Arabia's Vision 2030 aims to boost foreign direct investment by encouraging joint ventures, offering benefits like market access and local expertise. Foreign investors should conduct thorough due diligence on potential partners and carefully select appropriate legal structures to ensure successful collaborations
- Saudi Arabia's Vision 2030 has sparked a surge in mega infrastructure and smart city projects like NEOM, The Line, and Qiddiya. These initiatives are transforming the construction landscape with futuristic designs and massive investment flows.
Frequently Asked Questions
Saudi Arabia is expected to witness the highest CAGR in the construction market due to rapid urbanization, infrastructure development, foreign investments, and increasing demand for residential, commercial, and transportation projects across the continent.
The major factors driving the growth of the construction market are rapid urbanization and growing population and strong government policies and regulations promoting sustainability and green construction.
The primary challenges include restrictions on imports and exports of certain construction materials.
