About the market
The construction industry in East Africa is expected to expand in value to $ 9.3-billion over the next six years as investment increases, a new research report asserts. Research by global consultancy Frost & Sullivan pegs the current value of East Africa’s construction industry at $ 6-billion, and notes that the expected increase will largely be the result of investment by governments into housing, roads and civil works. The construction industries in Kenya, Uganda and Tanzania are primarily driven by government initiatives to eliminate urban slums.
Infrastructure is one the most critical enablers of a successful regional integration, taking into account its importance in facilitating activities such as trade, agriculture, tourism and the movement of labor and/or other resources. Outlining in greater detail the need for co-operation in infrastructure and services within the EAC, the EAC Development Strategy underscores the importance of infrastructure, noting the catalytic role it plays in the functioning of economies.
Energy is essential in the running of daily domestic activities and operation of industry. Availability of sufficient, reliable and affordable energy is crucial for the functioning of the economies of the East African region. As a service and productive sector, energy plays a catalytic role in stimulating investments and higher levels of productivity. Energy supply and energy access have, therefore, been integrated into the EAC Development Strategy the focus of which is the supply of sufficient, reliable, cost effective and environmentally friendly energy through promotion of both renewable and non-renewable energy sources.
5 reasons for Kenya & Africa
- 85 Mio. manufacturing jobs will leave Asia within the next ten years. Africa will be ready to takeover!
- Africa will be the new demographic powerhouse. All continents will grow older and many economies will have a shrinking working population. Africa on the other hand is still young and the working age population is rapidly expanding.
- By 2033, half of Kenya’s population will be urban, i.e. living in (big) cities. Studies show that doubling city size is associated with a productivity increase of an average of 6 %.
- Kenya speaks the world’s leading language - English - and the business community largely benefits from a good labor force.
- Compared to Europe, Africa’s macroeconomic policies look excellent! For example, Kenya’s debt level of around 45 of GDP would propel it to one of the top performers in the European Union.