Kenya maintains lead in regional infrastructure projects

Kenya has maintained a lead in regional infrastructure development with 20 roads, harbours, energy and water projects compared to Ethiopia’s 12 projects, according to a report by consultancy Deloitte.

Large projects have in the last three years taken up to 20 per cent of all capital investment in Africa and were worth $569 billion, mainly funded financiers such as the World Bank and even China.

“Transport infrastructural development took up 51 per cent of projects, energy and power (30 per cent), water (eight per cent) and social development (four per cent),” says the report.

“The mix of projects has expanded to incorporate the retail estate sector where countries such as Kenya and Tanzania are experiencing significant growth in Retail, entertainment and lifestyle facilities, modern office parks, and hotel space.”
‘New urbanism’ buoyed by a growing middle class that cherishes green energy use and open spaces has lured foreign direct investments where investors are reaping handsome yields from real estate rentals, technology, innovation and sustainability.
Of the projects, 36 per cent of the construction was fully funded by governments where foreign contractors were implementing them, followed by China (21 per cent) while 13 per cent were public private partnerships.