Growth Opportunities in East Africa's Construction Industries
Frost & Sullivan, September 2010, Pages: 111
This research was carried out on East Africa's construction industries to try and accurately identify factors currently affecting this market. Three countries where analysed namely Kenya, Tanzania and Uganda. The East African construction industry is mostly funded by government expenditure. This sector includes roads and public works, water and sanitation, urban infrastructure, transport, energy and housing. Market sizes for the three countries were calculated for 2009 and forecasts determined for the period 2009 to 2016. In addition, market dynamics such as challenges, drivers and restraints were also identified
Research Overview
This Frost & Sullivan research service titled Growth Opportunities in East Africa's Construction Industries provides a detailed analysis of east Africa’s construction industries, including their structure, size and direction as well as the key opportunities for construction companies. In this research, Frost & Sullivan's expert analysts thoroughly examine the following regions: Kenya, Tanzania and Uganda.
This analysis is available through our Building Management Technologies Growth Partnership Services programme. With continuous access to intelligence and resources from all seven perspectives of the Complex Business Universe, the Growth Partnership Services programme ensures that you and your Growth Team™ are able to maintain a 360 Degree Perspective of the market. This comprehensive, objective information allows your company to mitigate risk, identify new opportunities, and drive effective strategies for growth.
Market Overview
Rapid Urbanisation and Governments’ Initiatives towards Infrastructural Development Boost the East African Construction Industries
Governments’ focus on infrastructure development to eliminate urban slums is driving the east African construction industries. Additionally, the high economic growth in this region is stepping up the need for urban transport networks. “In 2009 most governments in the East African region allocated a large portion of their annual budgets to the construction of housing, roads, and civil works,” says the analyst of this research. “Approximately 60 percent of Kenya’s urban population resides in slums that are deemed unfit for human residence, thereby driving the need to provide more housing to the urban population and eliminate all slums around Kenya’s urban centres.” Various institutional reforms to promote the development of the construction industries are being implemented in this region. For example, the Kenya Slum Upgrading Programme (KENSUP) is an initiative to eliminate housing problem in the country. Such programmes are expected to address Kenya’s infrastructural backlog and promote growth of its construction industry.
However, intense competition from Chinese construction companies and the high cost of borrowing are some of the major obstacles to the development of the east African construction industries. “Chinese construction companies are largely preferred over local companies due to their comparatively low bidding prices,” explains the analyst. “Major contracts are awarded to these companies that make the construction business highly competitive.”
Stringent building planning regulations and high infrastructural standards are boosting companies to implement best practices for greater chances of receiving contracts in the east African construction industries. Therefore, participants that offer superior construction materials are more likely to receive government contracts in the long run. Furthermore, the projected high economic growth is expected to ensure continued growth of the construction industries in east Africa. “The East African construction industry has a poor reputation of producing sub-standard infrastructure,” says the analyst. “The implementation of best practises by utilising high quality construction material will give companies an edge and enhance their construction business.”
Market Sectors
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
By Region:
- Kenya
- Tanzania
- Uganda
- 1. Executive Summary
- - 1.1 Introduction
- - 1.2 Industry Overview
- - 1.3 Summary of Key Findings
- 2. Research Aim and Objectives
- - 2.1 Research Aim and Objectives
- - 2.2 Research Scope and Definitions
- - 2.3 Research Methodology
- 3. East Africa’s Construction Industries
- - 3.1 Industry Overview
- - 3.2 Market Sizes and Growth Rates
- - 3.3 List of Key Market Participants
- 4. Kenya’s Construction Industries
- - 4.1 Industry Overview
- - 4.2 Industry Challenges and Market Forces
- - 4.3 Market Sizes and Growth Rates
- - 4.4 Construction Industry Trends
- - 4.5 Investment Opportunities
- 5. Ugandan’s Construction Industries
- - 5.1 Industry Overview
- - 5.2 Industry Challenges and Market Forces
- - 5.3 Market Sizes and Growth Rates
- - 5.4 Construction Industry Trends
- - 5.5 Investment Opportunities
- 6. Tanzania’s Construction Industries
- - 6.1 Industry Overview
- - 6.2 Industry Challenges and Market Forces
- - 6.3 Market Sizes and Growth Rates
- - 6.4 Construction Industry Trends
- - 6.5 Investment Opportunities
- 7. Comparative Analysis and Strategic Conclusions
List of Figures
Construction Industry: Revenue Split by Country (Sub-Saharan Africa), 2009
Construction Industry: Revenue Split by Country (East Africa), 2009
Construction Industry: Revenue Forecasts (East Africa), 2006-2016
Construction Industry: List of Construction Companies (East Africa), 2009
Construction Industry: Impact of Top Four Industry Challenges (Kenya), 2010-2016
Construction Industry: Market Drivers Ranked in Order of Impact (Kenya), 2010-2016
Construction Industry: Market Restraints Ranked in Order of Impact (Kenya), 2010-2016
Construction Industry: Revenue Forecasts (Kenya), 2006-2016
Construction Industry: Government Expenditure in the Sub-sectors (Kenya), 2006-2009
Construction Industry: Government Expenditure in the Construction Sector (Kenya), 2006-2009
Construction Industry: Government Expenditure Roads and Public Works (Kenya), 2006-2009
Construction Industry: Government Expenditure in Water and Sanitation Sector (Kenya), 2006-2009
Construction Industry: Government Expenditure in Urban Infrastructure Sector (Kenya), 2006-2009
Construction Industry: Government Expenditure in Transport Sector (Kenya), 2006-2009
Construction Industry: Government Expenditure in Energy Sector (Kenya), 2006-2009
Construction Industry: Government Expenditure in Housing Sector (Kenya), 2006-2009
Construction Industry: Contract Value of Building Plans Approved (Kenya), 2008-2009
Construction Industry: Financial Resources for the KENSUP and CSHS Programmes (Kenya), 2007-2011
Construction Industry: Impact of Top Five Industry Challenges (Uganda), 2010-2016
Construction Industry: Market Drivers Ranked in Order of Impact (Uganda), 2010-2016
Construction Industry: Market Restraints Ranked in Order of Impact (Uganda), 2010-2016
Construction Industry: Revenue Forecasts (Uganda), 2006-2016
Construction Industry: Construction Sector Indices (Uganda), 2006-2009
Construction Industry: Public Investment (Uganda), 2006-2009
Construction Industry: Composition of Public Infrastructure Spending as Per cent of GDP (Tanzania), 2006-2009
Construction Industry: Construction Professions (Tanzania), 2007-200
Construction Industry: Impact of Top Five Industry Challenges (Tanzania), 2010-2016
Construction Industry: Market Drivers Ranked in Order of Impact (Tanzania), 2010-2016
Construction Industry: Market Restraints Ranked in Order of Impact (Tanzania), 2010-2016
Construction Industry: Revenue Forecasts (Tanzania), 2006-2016
Construction Industry: Comparative Analysis (East Africa), 2009
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