Infrastructure Risk/Reward Ratings: Volatile Rewards, But Risks Improving
BMI View: While Sub-Saharan Africa continues to offer impressive construction market growth rates, this quarter we are highlighting that growing economic headwinds will potentially reduce rewards on offer over the coming years. Government budgets are likely to come under increasing pressure and damage is being done to certain market's attractiveness to investors - both factors which will limit already badly needed capital investment in infrastructure.
Key Trends and Developments:
Nigeria's rebased economy has boosted the size of the market, making it the largest construction industry in Africa. While this has seen the country move up to 9th position in our regional table, it remains well behind South Africa in light of high levels of risk.
Southern Africa Dominates Low Risk High Reward Space Infrastructure Risk/Reward Ratings