ABIQ projects construction sector to hit $45bn in 2028
African Business Intelligence has projected in its latest quarterly report that the Nigerian construction sector may grow to $45bn by 2028.
It declared that the country’s construction sector is expected to be valued at around $40bn at the end of 2024.The report noted that the construction sector in Africa was experiencing a dynamic surge, driven by rapid urbanisation, infrastructure development, and strategic investments.
It stated, “Nigeria is driving momentum with a compound annual growth rate of 2.4 per cent. The country emerges as a frontrunner, showcasing a robust market in the construction sector, which had a value of $40bn in 2024 and is expected to grow to $45 bn by 2028. With a burgeoning population and increasing urbanisation, the demand for residential, commercial, and infrastructure projects is at an all-time high.
“Nigeria’s proactive approach to infrastructure investments, particularly in transportation and energy, positions it as a key contributor to Africa’s construction boom.”
Reacting to this, a built expert, Samuelson Egelege, said the anticipated growth would be driven by several emerging trends and ongoing projects that paint a promising picture for the sector.
He said, “This anticipated increase is fueled by the country’s burgeoning population and urbanisation, which have amplified the demand for residential, commercial, and large-scale infrastructure projects. Nigeria’s proactive investment in transportation networks and energy infrastructure further cements its position as a central player in Africa’s construction landscape. This growth is not only essential for accommodating the population surge but also for catalysing sustained economic expansion, as infrastructure development directly impacts other sectors including transportation, energy, and trade.
“Egypt, another powerhouse, showcases rapid construction sector growth with a remarkable CAGR of 8.4 per cent. From a market size of $51bn, it is expected to reach $76 bn by 2028. This growth is primarily attributable to strategic investments in transportation, energy facilities, and urban development. Egypt’s appealing business environment, coupled with its strategic geographic location, continues to attract both domestic and foreign investments.”
He added notable projects, such as the development of the new administrative capital and the expansion of the Suez Canal, that highlighted Egypt’s infrastructural ambitions and contributed significantly to regional development and economic stimulation.
“Elsewhere, Kenya has emerged as a dynamic force in the African construction market, boasting a 7.1 per cent CAGR. The sector’s growth from a $17bn market size to an anticipated $24bn by 2028 is driven by substantial investments in road networks, railways, airports, and urban housing projects,” he remarked.
He noted that the projected $45bn growth in Africa’s construction sector by 2028 was underpinned by strategic investments, urbanisation, and proactive government policies.
He added, “These nations’ targeted efforts in developing infrastructure translate into broader economic growth that reverberates across the continent. As these countries continue to expand and innovate within the construction sector, they not only enhance their own economic prospects but also fortify Africa’s position in the global construction market.
“This trajectory provides promising opportunities for investors and stakeholders interested in tapping into Africa’s burgeoning infrastructure landscape, setting the stage for continued economic transformation and prosperity.”
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