2013-03-11 12:26:28 - New Construction market report from Business Monitor International: "Angola Infrastructure Report Q2 2013"
BMI View: We have revised up our near term outlook for growth in Angola's construction industry as the government focuses on infrastructure investment in an attempt to diversify the economy. In addition to increased spending in the FY2013 budget, which is in line with the 2013-2017 National Development Plan, we also see continued investment from Chinese companies to support national resource extraction. Consequently, we are forecasting growth of 15.1% and 14.4% in 2013 and 2014 respectively.
Angola's construction industry is expected to be boosted by a combination of government investment, supported by a drive to develop infrastructure to support economic diversification and a strong expansion in oil production and therefore revenues. The country should also see continued investment from China, Brazil
and Portugal, with the former two providing funding to support investments.
Key elements driving our positive forecast:
* The FY2013 budget, passed in January 2013, outlines a 60% increase in public investment, much of which will be directed to construction projects and infrastructure rehabilitation. Overall, public sector spending will expand by 26% to reach US$52.1bn, a third of which will go to social projects such as healthcare, education and housing, thereby providing a further boost to the construction sector. Elevated oil prices, combined with growth in oil output, should boost revenues in 2013 to support this investment.
* Oil production is expected to grow by 16% in 2013, to 2.4mn barrels per day. This should support revenue growth and infrastructure investment.
* The 2013-2017 National Development Plan will target social infrastructure and basic utilities. Investment into water and electricity provision will be prioritised, as will that into expanding healthcare, education and access to housing. It is hoped that these measures will help the country reach average annual GDP growth of 7.1% over the period, with 7.3% per annum expected in the non-oil sector.
* China will continue to be a key investor in Angola, with trade between the two countries having expanded by 37.7% over 2012, accounting for 40% of all Angolan oil exports. The Angolan National Private Investment Agency released data on the relationship between the two countries, on the 30th anniversary of diplomatic ties. The relationship peaked in 2009, when ANIP approved 66 projects from Chinese investors, including 56 for construction, worth over AOP16bn. Between 2002 and 2010, China ExIm Bank provided US$14.5bn in credit for Angola, the majority of which went towards infrastructure projects. We do not anticipate a change in this relationship over the near term.
Full Report Details at
- www.fastmr.com/prod/552250_angola_infrastructure_report_q2_2013. ..
Report Table of Contents:
BMI Industry View
- Construction And Infrastructure Forecast Scenario
- Table: Angola Construction And Infrastructure Industry Data, 2011-2016
- Table: Angola Construction And Infrastructure Industry Data, 2017 -2022
- Transport Infrastructure - Outlook And Overview
- Table: West Africa Major Transport Projects
- Energy & Utilities Infrastructure - Outlook And Overview
- Residential/Non-Residential Building - Outlook And Overview
- Table: CHINA BUILDING A REGIONAL LEAD
Industry Risk Reward Ratings
- Regional Industry Risk/Reward Ratings
- Table: Sub-Saharan Infrastructure Business Environment ratings
- Competitive Landscape
- Table: Number of Contractors In West Africa, By Domicile, 2011
Global Industry Overview
- Europe, Middle East and Africa
- Dubai Confidence Up, Mega-Spending Status Quo In The Region
- Low Yields Push Capital Further Into Infrastructure
- Turkey Shines As South Africa and Poland Struggle To Recover
- Natural Resource Boom Drives SSA Infrastructure Investment
- Latin America
- Table: Planned Elections: Latin America 2013
- Data Methodology
- Capital Investment
- Table: Infrastructure Business Environment Indicators
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