Inflation in Nigeria reached a seven year high at 17.8% in January, this rate as of (5/28/2017) has dropped slightly to 16.8%. Nigeria’s GDP is forecast to grow in the 1.1% to 1.2% range in the 2nd half of 2017. Less oil imports to the US could be one of the results of President Trump’s domestic USA oil policy. 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 remains 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.