The research firm expects the sector to emerge from recession
In its 2019 sub-Saharan Africa construction growth outlook, Fitch says it expects the construction industry in the region to grow by 6.8% year on year, “which will continue over the medium term as investment flows into the region in order to meet pressing infrastructure needs”.
Ethiopia will remain the region’s top performer, with its construction industry value likely to increase 12.3%. But construction in Zambia is likely to contract 2.3% in 2019 as the government faces a fiscal crisis and rising risk of debt distress.
The sector in Namibia is forecast to slow down as major projects come to an end. “In Namibia, the completion of the country’s largest construction projects, new container and liquid bulk terminals at Walvis Bay port, will cause the sector to contract by 3.5% year on year as there is a lack of new projects to drive growth,” says Fitch.
As for South Africa construction industry, it is set to emerge from recession in 2019 but growth will remain tepid at 2.4% according to Fitch Solutions. The sluggish growth in South Africa spells more troubles for struggling construction and building companies in the country.