The past two years have not been easy for the project cargo sector as Covid-19 severely impacted global economic activity – and Africa was no exception.As predictions of some recovery started surfacing as pandemic lockdown restrictions started to ease, yet another shock came in the form of Russia’s invasion of Ukraine – which set back global recovery while adding to inf lation. All over the world fuel and food prices have risen, with vulnerable populations in low-income countries hit the hardest. In African countries, surging oil and food prices have strained external and fiscal balances.According to the International Monetary Fund, the growth momentum for sub-Saharan Africa has weakened this year, with economic activity expected to expand by 3.8%. While the recovery is projected to accelerate in 2023 to about 4% over the medium term, this pace is not sufficient to make up for ground lost through the pandemic.While projects are recognised as a means of achieving competitive advantage in Africa, the current economic climate has not been conducive and many projects have been placed on hold or timelines extended, impacting project cargo volumes.Research House ABiQ, however, notes that it is not all doom and gloom, and that the African projects market is filled with opportunities. But, it states, finding and accessing reliable and validated data has been a problem for a long time. As per ABiQ’s unique business intelligence platform, it estimates that business opportunities and projects worth over $2 trillion exist in Africa. North Africa leads the continent with projects worth $450 billion, followed by East Africa with $400bn worth of projects. West Africa comes third with projects worth $345bn.Egypt leads the project market with over 300 active projects worth $338bn. With active projects worth around $207bn, South Africa comes second, followed by Nigeria, which has ongoing and upcoming projects worth $200bn.Ongoing investment in infrastructure development remains the focus, making construction currently the largest sector on the continent.ABiQ research indicates that there are over 570 construction projects in Africa worth $450bn. Energy has projects worth over $370bn, followed by transport projects which include roads, airports, and railways, worth $280bn.Duncan Bonnett, a director at Africa House, remains bullish about the mining and renewable energy sectors saying there’s ongoing investment around the continent, resulting in new projects that will bode well for the project cargo sector.He said an uptick in the mining sector had been seen in the past few years, especially in the gold market. “Interest in minerals such as graphite, cobalt, copper and lithium has also increased.”Another positive development, said Bonnett, was that of several African countries working hard towards improving the regulatory and operating environments for businesses – factors many projects depended on.“The power sector also holds much potential for project cargo, with developments and interest growing across the continent. Much of the focus is on renewables,” he said.
