Nigeria is emerging as the frontrunner in Africa’s rapidly growing construction sector, now valued at $44.3 billion and projected to grow at a compound annual growth rate of 5.7 percent over the next five years.
This surge is part of a broader continental trend, as urbanisation, industrialisation, and population growth continue to accelerate across Africa, creating unprecedented demand for infrastructure and energy development.
Africa’s construction industry, currently worth about $200 billion, is expected to reach approximately $300 billion by 2032. Five countries – Nigeria, Algeria, Egypt, Tanzania, and Ethiopia – are set to account for over half of this growth. While Nigeria stands out in terms of size and activity, this momentum is rooted in structural factors affecting the entire continent.
“Africa is undergoing a transformation,” said Anthony Coleman, director of Development Research at Afreximbank, who presented the EPC survey results and report at the ongoing 4th Intra-African Trade Fair in Algiers, Algeria, organised by Afreximbank, the African Union Commission, and the AfCFTA Secretariat. “Population growth, rapid urbanisation, and the push for energy sufficiency are combining to reshape the construction landscape.”
The global context plays a role as well. Sluggish growth in major economies, particularly in Europe, has affected construction worldwide. However, the global pivot toward energy security, especially in response to the Russia-Ukraine crisis, has intensified demand for liquefied natural gas (LNG) infrastructure and logistics networks. “We are seeing companies rethinking supply chains and governments investing in new energy infrastructure,” Coleman noted. “This is having a ripple effect on construction demand in Africa.”
Read also: Nigeria’s $108bn construction market draws global players as Big 5 expo returns
Despite this positive outlook, Africa’s infrastructure boom is highly concentrated, with just a handful of countries dominating the market. Algeria and Egypt, for instance, account for roughly 30 percent of all construction activity in North Africa. Central, East, and West Africa are also witnessing steady growth, with countries like Cameroon and Rwanda showing strong potential. However, much of the continent still faces a significant infrastructure gap. “The need is clear,” said Coleman. “As our economies grow, we must build to keep up whether it’s roads, ports, power plants, or housing.”
Yet, there’s a critical problem at the heart of this boom: limited African participation in the Engineering, Procurement, and Construction (EPC) sector. To better understand this issue, Afreximbank launched a detailed study aimed at identifying the barriers preventing local contractors from fully engaging in major infrastructure projects. “We didn’t want to assume we needed the facts,” Coleman explained. “So we went directly to the stakeholders.”
The study involved interviews with African contractors who bid for government projects, those who don’t, and the government agencies overseeing infrastructure development. The findings revealed a consistent set of challenges. On the contractor side, a lack of technical capacity, limited access to financing, and major information gaps are preventing firms from competing effectively. “Many contractors simply don’t know where the opportunities are,” said Coleman. “And even when they do, they often lack the support needed to win.”
Government agencies echoed similar concerns. They pointed to insufficient visibility into local contractor capabilities, doubts about their capacity to deliver on large-scale projects, and restrictive external funding conditions that tend to favor foreign firms. “Sometimes the issue isn’t even local, it’s built into the terms of the financing,” Coleman emphasised. “We need to change that.”
In response, Afreximbank is taking concrete steps. The bank is developing a centralised digital platform to aggregate information on EPC projects across the continent, making it easier for African contractors to access opportunities. It’s also rolling out capacity-building programmes to enhance technical, financial, and operational readiness among local firms. Perhaps, most importantly, the bank is using its findings to advocate for change, working with governments and funding institutions to design procurement processes that intentionally include African players. “We want these projects to be African-led and African-delivered,” said Coleman. “This is how we build ownership and resilience.”
Kanayo Awani, executive vice president, Intra-African Trade Bank at Afreximbank, said: “Most African EPCs are more than just contractors. In fact, they are not merely contractors at all. Unlike in many parts of the world where EPCs focus solely on construction, in Africa, they play a far more strategic role. They are enablers of development and key partners in addressing the continent’s financing challenges.”
