“I also think that the Western firms still have the edge on more complex projects, with perceived better specialist technologies- like in the oil and gas and energy sectors, and better engineering solutions and build quality.”

The report says infrastructure development companies from Europe, U.S. and China have taken advantage of recent opportunities to entrench themselves in the market. Most of the work is created by Africa’s drive to build transport corridors to integrate regional trade, investment in water infrastructure and strengthening and expanding telecommunications.

Pottas says increasing funding from China could in coming years “create excellent growth opportunities for Chinese construction companies.”

A notable development in East and Central Africa is the growing list of Chinese contractors for mega projects such as rail, roads, ports and airports, which “are being built by the Chinese as financed in large part by the large Chinese financial institutions.”
Mark Smith, head of capital projects in East Africa at Deloitte, says the trend has picked up in the past five years and is gaining momentum with new project announcements.

 “Conversely, the large scale projects involving oil & gas, such as current exploration drilling and LNG projects are being more dominated by the large international EPC firms that have a long-term track record with large and technically complex engineering projects.”

However, Smith observes that despite the growing Chinese influence in construction projects in East and Central Africa, there is also an emerging trend where “local engineering and construction firms are being left out.”

Renewed Interest

“There will be a renewed interest by both country and regional governments to include these locals firms in the mega-infrastructure projects but it will require a fairly comprehensive project readiness review of policies and protocols by the various ministries involved in such project efforts.”

A growing middle class in Africa, the deepening of the continent’s financial sector, resurgent emerging world partnerships and rise in oil and gas discoveries have been cited as key drivers in the infrastructure boom.

The analyst says a large portion of the allure lies in Africa’s large share of unexploited industrial commodities including 25% of bauxite, over 60% of diamonds, 50% of cobalt, 80% of phosphate and more than 90% of platinum group metals. “In markets that are shape shifting to survive in the context of finite resources, recent finds of natural gas and oil in East Africa, as well as mineral wealth in West Africa are ratcheting up the continent’s magnetism,” said Pottas.

In October, AECOM was picked for  engineering, procurement, construction management (EPCM) and project-close-out services contract for the 15 Transnet projects in South Africa, which include a rail and material-handling infrastructure, expansion of a container terminal and resurfacing of berths at the port of Cape Town, iron loading facilities, fire-suppression systems and new-build port buildings.

AECOM’s chairman and chief executive officer John M. Dionisio said: “This series of projects serves as a great example of the breadth of capabilities and expertise that AECOM teams around the world bring to our clients.”

Whether Africa will live up to the aspirations for it remains to be seen. There have always been Africa pessimists and they have much to back up their arguments. But Africa isn't one country or culture, either, and so Africa's story in the next decade may end up being a book with many chapters.