Construction in Mozambique - Key Trends and Opportunities (H2 2021)

Mozambique's construction industry is expected to recover marginally by 0.2% in 2021, following a 0.9% contraction in 2020. The rise in Coronavirus (COVID-19) infections in January and February 2021, as well as militant attacks in the gas-rich Cabo Delgado province in March 2021, weighed on investments in the country's Liquefied Natural Gas (LNG) projects and hindered development activities in the first half of 2021. According to Instituto Nacional de Estatistica (INE), the construction industry contracted by 2.9% year on year (YoY) in the first half of 2021, based on the real value-add measure. However, recent government measures to safeguard the country have strengthened investor and organizational confidence in resuming operations gradually this year, and into 2022, which will fuel the industry's expansion.

Over the remainder the forecast period, the construction industry is expected to register an annual average growth of 4.7% between 2022-2024, supported by investments on the energy, transport and telecommunication infrastructure projects, as part of the Programa Quinquenal Do Governo (the government’s five-year program PQG 2020-2024). The program focuses on improving the well-being and quality of life of the Mozambican families, while reducing social inequalities and poverty. In addition, the vast potential of LNG capacity, coupled with the government’s focus on providing 100% electricity access to all Mozambicans by 2030, will attract public and private sector investments towards the country’s gas and power infrastructure projects over the medium and long terms. The government's focus on constructing over 3,000 classrooms for primary education and 200 secondary schools across the country, as well as building and equipping 30 district hospitals, five vocational training centers, renovating four professional training centers and completing construction on three vocational training centers by 2024, will pave the way for industry acceleration over the forecast period.

In March 2021, the government presented the proposed budget framework for 2022-2024, with an emphasis on boosting agriculture, electricity, construction and health sectors. According to the proposed budget, the construction industry will grow at a rate of 3.2% to 5.5% between 2022 and 2024, supported by investments in public and private infrastructure, including the construction of 50,000 affordable housing units, 12 bridges and the rehabilitation of three bridges, 787km of national highways and 4,000km of rural roads, the paving of 1,200km of national and regional roads and the establishment of the Zumbo - Indico connection. Overall, the budget forecasts that the country’s economy will grow by 2.1% in 2021, and expand at an annual average of 4.2% between 2022-2024.

The publisher’s Construction in Mozambique - Country Briefing (H2 2021) report provides detailed market analysis, information and insights into Mozambique construction industry, including:

• Mozambique’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 Mozambique’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 Mozambique. It provides:

• Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Mozambique, 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.