New figures from GlobalData show that the health of the construction sector in sub-Saharan Africa is worse than in most other regions around the world, but the situation is improving.
Sub-Saharan Africa has received an overall score of 0.25 in GlobalData’s January 2022 Construction Project Momentum Index, which provides an assessment of the health of the construction project pipeline at all stages of development from announcement through to completion.
Every construction project in GlobalData's database is assigned a score of between 5 and -5 based on its current progress, a score that is continually updated over time. These are then weighted by the value of each project in order to arrive at overall scores for countries, regions and sectors.
That score puts sub-Saharan Africa in tenth place out of 11 regions, and is an increase on its score from December 2021 (0.07) when it ranked in 11th place.
One reason for sub-Saharan Africa's relatively poor performance in the index is its commercial and leisure sector, which scores just -0.16, putting it at 11th place out of 11 regions worldwide.
Sub-Saharan Africa's residential sector, by contrast, has performed somewhat better, with a score of 0.6 (putting it in fifth place globally).
Within sub-Saharan Africa, the problems in the construction sector are most significant in Ethiopia, which scores just -0.01 in the index. The situation in South Africa, however, is somewhat better with a score of 0.61.
The improving health of the construction pipeline in sub-Saharan Africa is partly due to the resolution of issues in the region's institutional sector, which has seen its score on GlobalData's Construction Project Momentum Index move from -0.07 in December 2021 to 0.32 in January 2022.
The construction sector is also seeing fewer and fewer problems in South Africa, which has seen its score on the index go from -0.06 in December 2021 to 0.61 in January 2022.
The Construction Project Momentum Index
GlobalData's Construction Project Momentum Index is based on analysis of thousands of individual construction projects around the world.
Each project is continually monitored for updates, with updates indicating progress increasing the project's score, while updates indicating delays or cancellations reduce the score. The score always sits between 5, the best possible score, and -5, the worst.
The scores for individual projects are then weighted based on their significance in order to create combined indices for each region or sector.
Events that can reduce a project's score include the project being cancelled or put on hold, delays, the rejection of applications or tender bids, or the reduction of the project's scope.
Events that can increase a project's score in the index, by contrast, include the completion or commencement of construction, the awarding of major contracts, or the approval of applications.
As well as a global overview of the Construction Project Momentum Index, Investment Monitor has broken down our coverage on a regional basis: