Angola Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Angola Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Summary

The construction industry in Angola is expected to continue its growth momentum and expand by 4.6% in real terms this year, following an estimated growth of 5.6% in 2022. The industry’s growth in 2023 will be supported by a rise in oil prices, and rising demand for oil amid the ongoing geopolitics crisis following Russia’s invasion of Ukraine. An upturn in construction confidence and a sharp increase in oil tax revenue, in line with high oil prices will spur public investments, particularly in the energy and mining sectors. According to the Ministry of Finance (MINFIN), the country's oil tax revenues grew by 54.4% year-on-year (YoY) in the first ten months of 2022, increasing from AOA5 trillion ($10.5 billion) in January-October 2021 to AOA7.6 trillion ($16.2 billion) in January-October 2022. The industry’s growth in 2023 will also be driven by investment in the mining sector, in line with the government’s aim to increase diamond production from an estimated 13.8 million carats in 2022 to 55.3 million carats in 2023. Despite registering further growth in 2023, the Angolan construction industry is expected to remain below the pre-pandemic levels throughout the forecast period.

GlobalData expects the Angolan construction industry to register annual average growth of 6.4% from 2024 to 2027, supported by investment as part of the Industrial Development Plan of Angola 2021 - 2025 (PDIA-2025), under which the government aims to attract private investors, increase national production, reduce imports, and create more jobs in the industrial sector. Implementation of the plan requires an investment of AOA56.7 billion ($120 million) over the five-year period. Forecast-period growth in the industry will also be driven by investment in mining, telecommunication, energy, and transport infrastructure projects. The government plans to increase the national electrification rate to 60% by 2025 and increase the cumulative installed capacity of biopower to 500MW, and solar, small hydro, and wind power to 100MW each, by that year. In June 2022, the US government agreed to provide financial support of AOA1.4 trillion ($3 billion) for the construction of new solar projects in four South Angolan provinces.

The report provides detailed market analysis, information, and insights into the Angolan construction industry, including -

• The Angolan construction industry's growth prospects by market, project type and construction activity
• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Angolan construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Angola. It provides -

• Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Angola, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
• Assess market growth potential at a micro-level with over 600 time-series data forecasts.
• Understand the latest industry and market trends.
• Formulate and validate strategy using GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.