Nigeria is set for a significant rise in construction spending in the next three to five years, assuming it can get its political house in order. The Nigerian population is forecast to grow to 250 million in the next ten years. Inflation in Nigeria reached 16% in November 2017, look for this rate to decease in the 1st half of 2018 to 12% to 14%. Nigeria’s GDP is forecast to grow in the 1.9% to 2.2% range in the 1st half of 2018. Ethiopia, Cameroon, Cote d’Ivoire, Kenya and Tanzania, are all forecast to experience slow to somewhat decent GDP growth for 2018 in the 3% to 4% range. On the other hand, both South Africa and Nigeria (Africa’s two largest economies) will experience slow or limited growth in the 1st half of 2018. If oil remains in the $60 to $65 a barrel range, there could be an uptick in construction activity in Nigeria, Uganda, Equatorial Guinea and Cameroon – if oil prices retreat and stay in the $35 to $45 a barrel range the opposite will be the case.
A shortage of skilled workers both in construction and manufacturing will continue to stymie South Africa’s economic growth for the 1st half of 2018. Depressed minerals / commodity prices continue to hold back the South 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. President Jacob Zuma recently resigned as President of South Africa.