Inflation in Nigeria reached a seven year high at 17.8% in January, this rate as of (8/20/2017) has dropped slightly to 16.3%. Nigeria’s GDP is forecast to grow in the 1.1% to 1.2% range in the 2nd half of 2017. Ethiopia, Cameroon, Cote d’Ivoire, Kenya & Tanzania, are all forecast to experience slow to somewhat decent GDP growth for 2017 in the 2.9% to 4.1% range. On the other hand, both South Africa & Nigeria (Africa’s two largest economies) will experience slow or no growth in the 2nd half of 2017. If oil prices rise in the $50 to $60 a barrel range, there could be an uptick in construction activity in Nigeria, Uganda, Equatorial Guinea & Cameroon — if oil prices retreat & stay in the $35 to $45 a barrel range the opposite will be the case.
A shortage of skilled workers both in construction & manufacturing will continue to stymie South Africa’s economic growth for the 2nd half of 2017. Depressed oil & commodity prices continue to hold back the African construction sector. Business confidence is considered to be at a near all-time low in South Africa, one of the major countries of Africa.