Cameroon Infrastructure Report Q1 2013
- ID: 2313661
- November 2012
- Region: Cameroon
- 64 pages
- Business Monitor International
Cameroon’s construction sector faces favourable conditions over the medium term as the government continues to prioritise infrastructure investment as part of its 10-year economic plan.
Cameroon therefore ranks as one of the best locations in West Africa for infrastructure investments. In addition, high oil prices are swelling government coffers and facilitating ambitious infrastructure plans,
while Chinese funding remains dominant for mega-projects.
The key factors driving our outlook this quarter are:
- China First Highway Engineering Company was awarded a contract to build a motorway between Douala and Yaounde in China. The six-lane motorway will reduce the distance travelled between the two cities from 265km to 215km. It also aims to foster trade within the central African region, particularly within Cameroon, the Central African Republic and Chad.
The bridge will be funded by China Export Import Bank, which has signed a US$467mn loan agreement.
- The World Bank has announced that it will provide a US$132mn loan for the Lom Pangar Hydroelectric Power Project in Cameroon. The project will increase the hydroelectric power production capacity of the Sanaga River by 40%. The loan will also finance the construction of a new 30 megawatt (MW) power plant, which will provide electricity to 2,400 homes in the country.
- Kribi Power Development Company (KPDC) will receive a long-term loan of EUR29.5mn
(US$38.42mn) from the European Investment Bank (EIB) for its Kribi power project in Cameroon. The EUR263mn (US$342.49mn) project involves the construction of a 216MW natural gas power plant in Southern Cameroon, a high-voltage transmission link of 100km, new substations and transformers. Cameroon's government and AES Corporation had established KPDC to execute the project. The Sanaga South gas field offshore Cameroon will be the main supplier of natural gas to the plant. In addition, the electricity generated by the plant will be exclusively supplied to Cameroon power utility AES-SONEL.
- Cameroon is emerging as an up-and-coming cement producer, as good access to both the booming West African economy and global export routes are bringing in an increasing amount of foreign investment. In May 2012, Morocco’s leading home builder Addoha Group began construction of an US25.9mn 0.5 metric tons per annum (mtpa) plant. After a number of delays relating to land disputes, Dangote Cement finally began work on a US$115mn 1.5mpta plant.
Both the builds are located in Douala.
A surge of investment and new exports should boost construction industry growth to an average of 6.1%
between 2013 and 2017, while improved infrastructure will play a role in lifting the long term real GDP growth rate to an average of 4.4% per annum over the same period. Risks are primarily to the upside, with oil production potentially exceeding expectations in 2012.
We believe neither changes to the electoral code, nor the postponement of parliamentary elections into 2013 will prove to be serious issues. The single greatest uncertainty facing Cameroon over our 10-year forecast period to 2021 is how a transition from the leadership of President Paul Biya, who has ruled since 1982, will be managed. Despite this significant risk – and smaller challenges such as piracy – Cameroon's fundamentals are relatively stable, leading to our expectation of broad political continuity. SHOW LESS READ MORE >
BMI Industry View 5
SWOT Analysis 7
Cameroon Infrastructure SWOT 7
Market Overview 8
West Africa Competitive Landscape 8
Table: Domicile and Number of Contractors In West Africa, 2011 8
Building Materials 14
Source: WSA, BMI 18
Cement Forecasts 19
Table: Cameroon Cement Production and Consumption Data, 2010-2016 19
Table: Cameroon Cement Production and Consumption Long-Term Forecasts, 2015-2021 19
Industry Forecast Scenario 20
Table: Cameroon Construction And Infrastructure Industry Data, 2010-2016 20
Table: Cameroon Construction And Infrastructure Long Term Forecast, 2015-2021 20
Construction and Infrastructure Forecast Scenario 21
Transport Infrastructure 25
Regional Transport Infrastructure Outlook And Overview 25
West Africa Major Projects Table 29
Table: West Africa Project Pipeline 29
Major Projects Table – Transport 35
Table: Major Projects - Transport 35
Energy And Utilities Infrastructure 37
Regional Energy And Utilities Infrastructure Outlook And Overview 37
Major Projects Table – Energy and Utilities 40
Table: Major Projects – Energy and Utilities 40
Residential/Non-Residential Construction and Social Infrastructure 41
Regional Residential/Non Residential Building Outlook And Overview 41
Table: China Building A Regional Lead 43
Major Projects Table – Residential, Non-Residential and Social Infrastructure 46
Table: Major Projects – Residential/Non-Residential Construction and Social Infrastructure 46
Risk/Reward Ratings 47
Cameroon’s Risk/Reward Ratings 47
Sub-Saharan Africa Risk/Reward Ratings 48
Table: Sub-Saharan Africa Infrastructure Risk/Reward Ratings 50
Global Overview 51
Industry Forecasts 58
Construction Industry 59
Data Methodology 59
Capital Investment 61
Construction Sector Employment 62
Infrastructure Risk/Reward Ratings 62
Table: Infrastructure Business Environment Indicators 63