Summary
Angola's construction industry is expected to have shrunk by 10.1% in real terms in 2020, owing to the impact of the Coronavirus (COVID-19) pandemic on the progress of construction works, coupled with capital spending cuts and a fall in oil prices. In mid-April 2020, the Ministry of Finance temporarily suspended the execution of projects signed under the Public Investment Programme (PIP), and non-priority and structural contracts as part of the Expenditure to Support Development, whose source of financing were not guaranteed. However, with the gradual resumption of construction projects, the economic sentiment in the construction industry picked up in the third quarter of 2020, with the economic sentiment index in the industry rising from -49 in Q2 2020 to -47 in Q3 2020, according to the Instituto Nacional de Estatística (INE).
The oil-dependent economy of Angola is expected to contract further in 2021, given the fall in oil revenue due to the subdued demand amid the pandemic and lower oil prices. According to the Ministry of Finance, the average crude oil price per barrel fell from AOA22,287.2 (US$61.1) in November 2019 to AOA18,976.6 billion (US$29.7) at the end of November 2020; in addition, oil tax revenues fell by 5.2% year on year (YoY) in the first 11 months of 2020. The decline in oil revenues, on which the country is highly dependent due to a lack of economic diversification, could weigh on public investment, particularly in infrastructure and energy and utilities projects. The risk of over-indebtedness remains substantial, as the debt is highly vulnerable to currency depreciation and changes in oil prices.
Over the remaining part of the forecast period, the industry is expected to register an annual average growth rate of 4.4% during 2022-2025, supported by investments in energy, transport, and mining infrastructure projects. The government targets increasing electricity access from 40% of the population in 2018 to 60% by 2025. To that end, it plans to generate 800MW of power from renewable energy sources by that year. In addition, the government's focus on developing new free trade zones (FTZs), to improve the business environment and attract foreign direct investment in the country is expected to support the industry's growth over the forecast period.
This report provides detailed market analysis, information, and insights into Angola’s construction industry, including -
Scope
This report provides a comprehensive analysis of the construction industry in Angola. It provides -
Reasons to Buy
Angola's construction industry is expected to have shrunk by 10.1% in real terms in 2020, owing to the impact of the Coronavirus (COVID-19) pandemic on the progress of construction works, coupled with capital spending cuts and a fall in oil prices. In mid-April 2020, the Ministry of Finance temporarily suspended the execution of projects signed under the Public Investment Programme (PIP), and non-priority and structural contracts as part of the Expenditure to Support Development, whose source of financing were not guaranteed. However, with the gradual resumption of construction projects, the economic sentiment in the construction industry picked up in the third quarter of 2020, with the economic sentiment index in the industry rising from -49 in Q2 2020 to -47 in Q3 2020, according to the Instituto Nacional de Estatística (INE).
The oil-dependent economy of Angola is expected to contract further in 2021, given the fall in oil revenue due to the subdued demand amid the pandemic and lower oil prices. According to the Ministry of Finance, the average crude oil price per barrel fell from AOA22,287.2 (US$61.1) in November 2019 to AOA18,976.6 billion (US$29.7) at the end of November 2020; in addition, oil tax revenues fell by 5.2% year on year (YoY) in the first 11 months of 2020. The decline in oil revenues, on which the country is highly dependent due to a lack of economic diversification, could weigh on public investment, particularly in infrastructure and energy and utilities projects. The risk of over-indebtedness remains substantial, as the debt is highly vulnerable to currency depreciation and changes in oil prices.
Over the remaining part of the forecast period, the industry is expected to register an annual average growth rate of 4.4% during 2022-2025, supported by investments in energy, transport, and mining infrastructure projects. The government targets increasing electricity access from 40% of the population in 2018 to 60% by 2025. To that end, it plans to generate 800MW of power from renewable energy sources by that year. In addition, the government's focus on developing new free trade zones (FTZs), to improve the business environment and attract foreign direct investment in the country is expected to support the industry's growth over the forecast period.
This report provides detailed market analysis, information, and insights into Angola’s construction industry, including -
- Angola’s construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Angola’s construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope
This report provides a comprehensive analysis of the construction industry in Angola. It provides -
- Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Angola, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using the publisher's standardized valuation and forecasting methodologies.
- Assess market growth potential at a micro-level with over 600 time-series data forecasts.
- Understand the latest industry and market trends.
- Formulate and validate strategy using the publisher's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
