4/13/2016

The african construction market, an employment generator?

Faced with strong local societal pressure and international economic pressure, African states are confronted with growing demand for development and infrastructure construction. Attracting more and more international investors, can the African construction market be considered as one of the generators of employment?



Welcome inaugurations

At a time when certain countries in Africa, such as Chad, are suffering from the sharp fall in price of oil per barrel, and are seeing some worksites at a standstill for an indefinite time, projects have seen their efforts rewarded. Large-scale infrastructure, such as the regional hospital in Pala and three other hospitals in the district, are real progress in health development, the paving of the Sarh-Kyabé road, and the modernization and renovation of the international Hassan Djamouss airport in N’Djamena, all recently inaugurated, mean relief for local people on the one hand, and contracts for other purposes on the other.

In Chad, a painstaking recovery, but one well on track

In Chad, good news is again on the agenda. Since November 2015, the BDEAC has granted three loans with a total of 70 billion F CFA, allocated to the construction and paving of two major roads: Kyabé-Singako (72.3 kilometers) and Kélo-Pala (109 kilometers), and the upgrading of the airport hubs Amdjarasss, Faya Largeau, and Moundou, ensuring they can handle domestic and international flights. Similarly, in early February, investors from a large Chinese construction group, made assurances that they wanted to explore the possibilities of taking part in Chad’s development. Thus the arrival of funds already engaged could boost employment in the very near future.

Projects that bloom across the continent

Development projects are many, and central to the concerns of government, particularly in regard to road infrastructure. But these projects are also being scaled up when it comes to the cooperation of several states. This is the case for rail transport between Cameroon and Chad, the road network between the Sudan and Chand, and for the Trans-Saharan project dating from 1970, which crosses Algeria, Tunisia, Niger, Nigeria, Mali and Chad. While Tunisia has completed its work, Chad still has 40% of its section to complete. Enough to ensure work for quite some time in a country where the young Ibrahim Hissein Bourma is the leader of a new generation of entrepreneurs: his company, Imperial Construction, part of the Oum Alkheir Holding group, has established itself as the construction industry’s national leader for its building, earth moving and road development.

With rising investment, openness to public/private partnerships with governments, for long- and short-term projects, the World Bank’s projected growth for Chad is close to 12%, and infrastructure needs continue to grow, a recovery that local people, who experienced serious difficulties because of the crisis, are eagerly awaiting and may be imminent in the African construction sector.