Top 4 reasons to venture into Africa construction industry

Africa: When one first pronounces Africa what comes in every mind is the rich resources and development rate that has been recorded in the recent times much of it due to Africa construction activity
Currently the continent has attracted various investors from all over the world because no doubt the continent is growing at a quick rate and it has low debt levels and a youthful population that is more focused.
The African equity exchange-traded funds have soared over the past year, as the resource-rich continent is growing quickly, with low debt levels and a youthful and increasingly middle class demographic, but there are near-term risks to consider.
Global consultancy Ernst & Young believes Africa is the second-most-attractive investment destination, behind the U.S.
According to Arthur Childs from advisory firm Arch Financial Planning the best place to venture with large capital is the Africa construction industry for in covers and accommodates all industry that is from modern kitchen, construction equipment, building automation, pumps and not left behind software that brings minds to book and to practical’s.
Here we find 4 major reasons to why companies and investors should consider pumping huge resources to African construction industry.
1) Africa’s construction industry has exciting deals
As the continent grows there is also an increase of population that also has an increase in infrastructures demand and therefore making many companies win exiting deals from the continent.
Like currently there are various ongoing projects that have been awarded to various companies
2) Expanding economy
The International Monetary Fund predicts that seven out of 10 of the world’s fastest-growing economies between 2011 and 2015 will be in Africa. Many sub-Saharan countries’ growth is predicted to rise from 5 to 5.5 percent per year as they emerge from the financial crisis. This gives a clear indication that getting to the African continent for business is a gold mine opportunity.
3) Low debt levels
According to the world bank 2014 report Africa has better debt to GDP levels than some developed countries, for instant U.K.’s debt level is 77 percent whereas Nigeria’s is just 16 percent and Kenya at 12 % and this are some of the countries that many investors are really eyeing at.

4) Africa’s construction Industry has Low correlation to compared to other markets
Africa’s construction industry is relatively uncorrelated to developed and emerging equity markets, with a correlation of 0.27. According to Deloite report on construction industry 2014 the construction industry has not been fully grabbed and there is lower competition rate compared to other stuffy markets.

Posted on : 30 Nov,-0001

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