Profitable Insights for 2024 in Sub-Saharan Africa and MENA Region's Construction Industry
A recent survey suggests that the construction industry in the Middle East and North Africa (MENA) region and Sub-Saharan Africa anticipates a highly profitable year in 2024. The survey indicates robust earnings projections, reflecting optimism and growth prospects within the construction sector across these regions.
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Construction Indutsry's Profitable Insights for 2024 in Africa
Based on the findings of a survey carried out by RIB Software in November 2023, more than half of the participants in the market are looking forward to an upsurge in income and projects. As mentioned, 75% of the replies come from industry actors in Sub-Saharan Africa, while 25% come from the Middle East and North Africa. Construction activities accounted for 31% of the responses, followed by civil construction operations (27%) and general contracting operations (17%). In addition, 87% of businesses reported recovering from the COVID-19 epidemic. Thus, the three most significant issues they faced over the preceding year were growing input costs 51%, margin pressures 39%, and hiring and retaining qualified persons 30%.
The growing costs of inputs can be primarily linked to supply chain interruptions that started after the epidemic and were made worse by the upheaval in Ukraine and Gaza, according to Peter Damhuis, Vice President of the Middle East and Africa for the RIB. He explained that, as a consequence, the industry is experiencing even narrower profit margins as the cost of essential construction materials like cement, petroleum, and asphalt rises, which reportedly hurts initial budgets.
RIB Software is claimed to have expressed opinions similar to those described by economist Dr. Roelof Botha, who developed the Afrimat Construction Index (ACI). Such feelings are reportedly motivated by the emphasis on renewable energy, the necessity of overcoming logistical issues, government spending on different initiatives before the election, and sustained growth.
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Digital Transformation in Construction
By 2024, 53% of industry participants are expected to prioritize technological change as a critical strategic effort. Additionally, 50% of these players aim to use LEAN construction principles, 44% consider extending their company services, and 38% will be interested in broadening their geographical reach. Regarding digital transformation, the construction software company's area of expertise, Damhuis, states that RIB embraces the emphasis.
People know that the construction business is often behind the times when it comes to going digital. Nevertheless, increasing their margins and ensuring that they fulfill their deadlines and budgets can be accomplished with the assistance of a digital transformation strategy that has been carefully considered.
There has been a recent uptick in the number of machines in the construction business that can detect and eliminate potential hazards. As time goes by, technology is becoming more focused on safety. Additionally, as material-moving mules convey heavy or hazardous substances, wearable technologies such as work boots connect to Wi-Fi and notify others if an individual has fallen. There have even been instances of robots capable of constructing scaffolding or laying bricks independently. Artificial intelligence also plays a significant role, with robots taking over jobs humans used to do and supplement human decision-making. As a result, there will be fewer dangers associated with transportation due to the rise in 3D printing. Construction sites with environmental sensors monitoring noise, heat, and wind can alert construction workers in an emergency.
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