Report by PricewaterhouseCoopers (PwC) shows that the overall infrastructure spending in the sub-Saharan region is projected to grow by 10 per cent a year over the next decade and will exceed US$180bn by 2025.Kenya has been listed together with Nigeria and South Africa as those dominating the infrastructure market. While Nigeria and South Africa are considered number one in the list, Kenya together with other countries like Ethiopia, Ghana,Tanzania and Mozambique “are also poised for growth”.
The report also shows that spending on utility infrastructure is expected to be significantly stronger in countries that need to upgrade deficient energy, water, and sanitation services and in economies that are rapidly urbanising, such as China, Ghana and Nigeria.
The PwC report also noted that a substantial increase in spending in the basic manufacturing sector is expected in sub-Saharan Africa. “Annual spending in the chemical, metals and fuels sector is forecasted to increase across the seven major African economies to US$16bn, up from about US$6bn in 2012.”
The greatest growth of spending for utilities is expected in sub-Saharan Africa where an annual rate of 10.4 per cent between now and 2025 is forecasted. Spending for electricity production and distribution in the region is expected to rise from US$15bn in 2012 to US$55bn, while expenditures for improvements in water and sanitation services are forecasted to increase from US$3.3bn in 2012 to about US$10bn by 2025.
According to the report, the extraction spending in sub-Saharan Africa is projected to increase at eight per cent annually over the next decade. The bulk of spending is likely to take place in South Africa and Tanzania.
Extracts from African Review