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?
Hissein Bourma Ibrahim, entrepreneur
In this blog Hissein Bourma Ibrahim, CEO and founder of Oum Alkheir HOlding, will give young african entrepreneurs tips and advices to create and expand their business.
4/13/2016
4/06/2016
The african construction industry, the core of investments?
In
2014, the rate of construction industry investment experienced strong growth:
+46.2%, an increase of about 100 billion dollars compared to 222 billion in
2013. In just one year, the average value invested per project doubled, from 689
million to 1.27 billion. Until just a few years ago, governments found
themselves alone against the huge expense construction represents. But the
situation has clearly changed.
Who are the players that have contributed to supporting
investment growth?
Establishing the PPP, public/private partnership
In
more than 20% of cases, governments are the investors in the construction sector.
However, unable to carry the huge expenses required for the construction of
infrastructure, African governments are increasingly turning toward shared
investment solutions. Thus for eight years, Morocco has held the Forum Africain
des Infrastructures: several days of panel discussions, sharing successful
experiences and facilitating meetings between governments and investors. At the
eighth edition, Morocco and Tunisia have returned to PPP, allowing the state to
reach an agreement with a private investor to carry out a project.
Between
2007 and 2015, Tunisia built the new Enfhida-Hammamet airport. Already
developed in countries such as Senegal and Côte d’Ivoire, these partnerships
can be indispensable for the realization of development-related infrastructure.
National and international private investors
Some
consider the Africa today like China in the 1980s, with a huge potential for
profit. Thus, if international investors have sometimes cast aside projects in
Africa, they seem to be returning to the charge. This is the case with foreign
companies that regularly subcontract to other companies like Imperial Construction,
the Chadian company that is part of the Oum Alkheir Holding group of the young entrepreneur,
Ibrahim Hissein Bourma. In early 2016, Chad received Chinese investors who,
after meeting with the government, announced their desire to create a subsidiary
in Chad in order to take part in its development.
International development institutions
On
their own, international institutions represent about one quarter of investments
in the form of loans and technical assistance. In the CEMAC zone, for example,
which is made up of Cameroon,
Congo, Gabon, Equatorial Guinea, the Central African Republic and Chad, the Banque de Développement des États de l’Afrique Centrale (BDEAC) can
prove invaluable. Since November 2015, the BDEAC has granted Chad a loan of
some 70 billion CFA francs for the construction and paving of the Kyabé-Singako
(72.3 kilometers) and Kélo-Pala (109 kilometers) roads, and to establish
standards in airport hubs. Good news for Chadian companies such as Oum Alkheir
Holding, specialists in construction, earthmoving, and road development.
Thus
today, several actors allow African states to expand their infrastructure. In
countries where much remains to be done, there is no risk of the construction
market falling into despair.
3/30/2016
The construction industry in Africa, a priority market?
The
construction market is one of Africa’s major concerns. Road, health, trade, and
tourism infrastructures, in more or less developed countries: what is the
actual situation?
Increased investment
In 2014, Africa saw 325 billion
dollars invested in the construction of 257 infrastructure projects, with a
minimum of 50 million
dollars. These figures represent an increase of 46% compared with the previous year’s 222 billion.
While a reduction in the number of projects was recorded—65 fewer
than in 2013—the investment amount per site has increased
dramatically, bringing the average value per project to 1.27 billion against
689 million the previous year, almost double, allowing local businesses, such
as the Chadian entrepreneur Ibrahim Hissein
Bourma’s Oum Alkheir Holding to participate in the
development of their country.
Success stories
Today, Africa is undergoing a
metamorphosis. You only have to see the ambitious project the capital of Togo
is planning. An administrative and financial hub, located in the Lomé II
district, with a futuristic, modern look, which will invariably give the city a
facelift. While no launch date has been set, projects of this kind are destined
to break ground in Africa, accelerating development. In late December 2015, in N’Djamena,
Chad, the Hilton group inaugurated a new hotel complex: 250 luxury rooms, presidential
and royal suites, conference rooms, restaurants, and more. The result of a
public/private partnership this successful project is testament to the country’s
willingness to address its lack of tourist facilities, for officials and
business clientele, thus opening up to the international economy.
These issues were widely
discussed during the 8th edition of the Forum Africain des Infrastructures,
held in October 2015. At the heart of the discussions are the opportunities and
advantages for public and public partnerships between governments and
investors.
In this regard, Morocco stands
as example, demonstrating the effectiveness of such agreements, particularly in
the transport sector. Morocco has seen 1,700 kilometers of highways and 2,000 kilometers
of rail track across its territory (1,500 are planned for 2020). The
development of road and airport infrastructure is also a priority in Chad. In February,
an agreement was signed between the Chadian government and BDEAC, granting a loan of 25 billion CFA francs for the paving of the Kélo-Pala
road (109 kilometers), located on Cameroon’s major Kélo-Pala-Léré-Frontière axis,
helping with the region’s opening up. Likewise, work on the 260-kilometer Mongo-Am-Timan
road started in December. Specializing in earthworks and maintenance and repair
of roads, the Chadian group Oum Alkheir Holding holds pole position.
Labels:
Africa,
Construction
Location:
N'Djamena, Tchad
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