Mozambique Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market France, 2023-2027

The construction industry in Mozambique is expected to have shrunk by 5.7% in real terms in 2023, owing to headwinds such as high inflation, political unrest, natural disasters, and slowing manufacturing activities. Allegations of fraud following the country’s local elections held in October 2023 have resulted in a political unrest, with the opposition party Mozambican National Resistance (Renamo) calling for a nationwide protest against the winning party ‘Front for the Liberation of Mozambique (Frelimo)’ and boycotting the national parliament sitting. This has affected budget allocation and disrupted policy making. Also, the country had suffered natural disasters; in February-March 2023 severe tropical storm and subsequent floods affected 10 of the country’s 11 states, and destroyed 132,000 homes, over 123 health facilities, and 1,200 schools. The government’s reconstruction efforts however have provided an impetus to the industry’s output this year. In May 2023, the World Bank provided MZN9.9 billion ($150 million) in funding in response to Mozambique's devastating floods. In June 2023, the African Development Bank (ADB) announced its comprehensive relief and reconstruction plan of MZN6.6 billion ($100 million) to rebuild 21,000 homes in the impacted area.

The industry is expected to rebound at an annual average growth of 5% from 2024-2027, supported by investments in renewable energy, road, rail, education, and healthcare projects. In November 2023, the Ministry of Economy and Finance, and the Saudi Development Fund signed an agreement worth MZN10.4 billion ($158 million) to support the construction of public utility infrastructure in Mozambique. This amount will be allocated to three projects aligned with the Government’s 2020-2024 Five-Year Plan, encompassing the construction and equipping of five hospitals and the development of new dam in Muera. Forecast-period growth in Mozambique’s construction industry will also be supported by investments in the renewable energy infrastructure projects, in line with the government’s focus on reducing carbon emissions in the country. A significant project in the pipeline is the MZN8.2 billion ($125 million) upgrade of the Cahora Bassa hydroelectric scheme and the Mphanda Nkuwa Hydropower Project, worth MZN296.3 billion ($4.5 billion); the project is expected to reach financial closure in 2024 and complete construction by 2030.

The report provides detailed market analysis, information and insights into Mozambique’s 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 (2018-2022) and forecast (2023-2027) 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 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 critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.