Introduction
While Angola’s construction sector grew at 9% a year between 2006 and 2014 as the government focused on repairing and modernising the country’s infrastructure following the civil war, growth in the sector has since ground to a halt as many government projects dried up following the fall in the oil price. In December 2019, Fitch Solutions, a consultancy owned by rating agency Fitch, lowered the growth outlook for the construction sector, on the back of lower oil prices, to year-on-year growth of just 0.9% for the next four years. However, this could likely be cut further, due to the coronavirus pandemic, which hit the country in March 2020. The pandemic has already resulted in the cost of a bag of cement more than doubling in Angola, while construction materials, many of which are imported from China, have quickly sold out. The sector accounts for over 15.5% of the country’s GDP. While the construction industry regulator (IRCCOP) oversees 2,542 companies in the civic construction sector, there are few large local civil works companies and the sector is dominated by Chinese, Brazilian and Portuguese companies. The key challenges that the sector faces include corruption. One recent estimate is that Angola may have lost about US$20bn or 12.5% of the value of state infrastructure spend between 2002 and 2017. State projects also suffer from a lack of planning and poor supervision of public works. Another key challenge is late payments from the government. For example, as of December 2019 about €450m was owed to Portuguese construction companies, by the national government and various provincial governments.
Strengths
• Presence of a number of foreign companies that could help build local expertise.
• Young, fast growing and rapidly urbanising population
Weaknesses
• Lack of management and technical skills shortages.
• Limited access to credit.
• Weak infrastructure.
Opportunities
• Backlog in infrastructure such as roads and factories that need to be modernised.
• The state’s strategy to diversify the economy which may spur new infrastructure build projects in the private sector.
Threats
• Corruption.
• Late payments for state contracts.
• Weak economic outlook due to the coronavirus outbreak and reliance on oil.
Outlook
While Angola’s construction sector is in a slump, it still has a promising outlook, given the need to modernise infrastructure, particularly as the country’s population is set to grow to over 67 million by 2050, according to Angola's National Institute of Statistics. Growth in the sector is expected to remain subdued as the government focuses on tackling the coronavirus pandemic. However, pockets of opportunity exist. For example Engevia financial manager Felipe Gomes however says the one promising area in construction is the mining sector. “Projects are being developed in the construction of industrial hubs and development of mines, for diamonds and gold mining,” he adds. Another is the improvement of sanitation and water infrastructure, which the government is likely to focus on amid the pandemic, points out Saham Angola Seguros chief underwriting officer Henrique Raimundo.
The Construction Industry in Angola
2020
Full Report
R 1 900.00(ZAR) estimated $99.92 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 69.95 (USD)*
Table of Contents
[ Close ]| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | COUNTRY INFORMATION | 1 |
| 3. | DESCRIPTION OF THE INDUSTRY | 3 |
| 3.1. | Geographic Position | 3 |
| 4. | SIZE OF THE INDUSTRY | 5 |
| 5. | STATE OF THE INDUSTRY | 7 |
| 5.1. | Local | 7 |
| 5.1.1. | Corporate Actions | 11 |
| 5.1.2. | Regulations | 11 |
| 5.1.3. | Enterprise Development and Social Economic Development | 13 |
| 5.2. | Continental | 13 |
| 5.3. | International | 16 |
| 6. | INFLUENCING FACTORS | 17 |
| 6.1. | Government Support | 17 |
| 6.2. | Economic Environment | 17 |
| 6.3. | Technology, Research and Development (R&D) and Innovation | 18 |
| 6.4. | Labour | 18 |
| 6.5. | Marketing | 19 |
| 7. | COMPETITION | 19 |
| 7.1. | Barriers to Entry | 19 |
| 8. | SWOT ANALYSIS | 20 |
| 9. | OUTLOOK | 20 |
| 10. | INDUSTRY ASSOCIATIONS | 20 |
| 11. | REFERENCES | 21 |
| 11.1. | Publications | 21 |
| 11.2. | Websites | 22 |
| APPENDIX 1 | 23 | |
| Key Indigenous and Foreign Players | 23 | |
| COMPANY PROFILES | 30 | |
| ANDRADE GUTIERREZ S.A. | 30 | |
| AVIATION INDUSTRY CORPORATION OF CHINA LTD (THE) | 32 | |
| CARMON REESTRUTURA - ENGENHARIA E SERVICOS TECNICOS ESPECIAIS LTDA | 35 | |
| CASAIS ANGOLA - ENGENHARIA E CONSTRUCAO S.A. | 37 | |
| CERTAVE - SOCIEDADE COMERCIAL E INDUSTRIAL S.A. | 39 | |
| CHINA JIANGSU INTERNATIONAL ECONOMIC AND TECHNICAL COOPERATION GROUP LTD | 41 | |
| CHINA MACHINERY ENGINEERING CORPORATION | 43 | |
| CHINA RAILWAY GROUP LTD | 48 | |
| CHINA ROAD AND BRIDGE CORPORATION | 53 | |
| CITIC CONSTRUCTION CO LTD | 55 | |
| ENGEVIA CONSTRUCAO CIVIL E OBRAS PUBLICAS LTDA | 57 | |
| ERGICON ENGENHARIA E CONSTRUCAO LTDA | 59 | |
| MOTA-ENGIL ANGOLA S.A. | 60 | |
| ODEBRECHT S.A. | 63 | |
| OMATAPALO - ENGENHARIA E CONSTRUCAO S.A. | 66 | |
| PARAURBANA CONSTRUCOES DE ANGOLA S.A. | 68 | |
| SCONTRADING - SOCIEDADE DE CONSTRUCAO CIVIL LTDA | 69 | |
| SOARES DA COSTA CONSTRUCAO SGPS S.A. | 70 | |
| TEIXEIRA DUARTE S.A. | 72 | |
| TELHABEL - CONSTRUCOES ANGOLA S.A. | 76 |
