SECTOR EXPERTISE

Construction

Balancing risk with reward for construction enterprises across the continent

Our deep-sector expertise has been built through decades of supporting leading construction organisations as they navigate highly competitive markets and sub-sectors.

trophy

DEALS DONE

15+

people-group-star

TOTAL CLIENTS

30

left-quote

THOUGHTS FROM OUR LEADERS

Finding key opportunities in construction and infrastructure today

Over the past decade, competition in the construction sector has intensified. Tier-one construction companies bidding for projects have come under increasing pressure as budgets are cut, margins have narrowed and some of the established and listed entities have gone into business rescue.

Locally, South African infrastructure projects had propped up tier-one construction enterprises, however with government expenditure curbed since 2010 – and even larger restrictions expected as a result of the Covid-19 pandemic – opportunities are now being sought across the continent.

Water, energy and transportation projects remain critical to the development and growth of African economies, and because these initiatives are underpinned by infrastructure, they represent an opportunity for the Construction sector.

These deals however, herald both reward and peril, it is therefore essential to understand the local markets including legal and regulatory factors in the relevant jurisdiction. This requires working with a knowledgeable partner with on-the-ground expertise to ensure that all risks are understood and accounted for.

The Mozambican Liquified Natural Gas (LNG) project, for instance, presents significant opportunities for firms in terms of contributing to infrastructure in Mozambique, participating in the project itself and developing the value chain for LNG in South Africa, however it is critical to understand the intricacies of these projects to unlock their value.

Because Absa CIB supports large civil and infrastructure projects with guarantees, it is incumbent on us to understand the opportunities, risks and nuances associated with a project in the context of the broader market.

Our risk assessments provide value in detecting issues that may compromise a project, affording our clients an opportunity to re-evaluate and either mitigate the risks or seek more attractive projects in other markets.

Liza Eustace

Head: Healthcare, Construction and Hospitality

Latest insights

Unique perspectives on the factors impacting business today.

Podcasts

SA Tomorrow Investor Conference 2022 Wrap up

At Absa, we are proud to provide the necessary reach, skills and expertise in connecting international investors with corporate clients as they pursue business in Africa, as well as South African corporate clients seeking international investment.

RISK MANAGEMENT

Global Finance Innovators 2022 Award

We are proud to have been recognised as the Most Innovative Bank in Africa at the annual Global Finance, The Innovators Awards 2022 for the second consecutive year. Our Pan-African Cash Management Payments and Billers Product capability, Trade Management Online Platform and Real Time Clearing API innovations enable us to achieve this accolade.

RISK MANAGEMENT

Why Research Matters in the Equities Space

Equity research analysts deliver a vital service to South Africa’s institutional investors – but how do they know whose analysis to trust?

EVENTS

WEF22 discussion – Corporate mindset shift needed when investing in nature

A report by ‘The Money Show’

EVENTS

WEF22 discussion – Bolstering resilience ahead of future emergencies

A report by ‘The Money Show’

EVENTS

WEF22 discussion – How to implement sustainable solutions amidst hurdles along the way

A report by ‘The Money Show’

Subscribe for
quarterly updates

Analysis and data-driven insights for a changing
world – delivered direct to your inbox.

OUR TRACK RECORD

Feedback from our clients

Subscribe for quarterly updates

Analysis and data-driven insights for a changing world – delivered directly to your inbox.

Rate our website

How would you rate your overall satisfaction with this website?