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.

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DEALS DONE

15+

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TOTAL CLIENTS

30

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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.

INSIGHTS SERIES

NBFI Insights

As one of the largest funders of agricultural projects in sub-Saharan Africa, we are fortunate enough to have access to some of the most sophisticated farmers and agri-processing professionals on the continent. Couple this with the fact that we are one of the largest card issuers in South Africa and have access to data-rich consumer insights; we are uniquely positioned to track the journey of agriculture projects from farm to fork.

INSIGHTS SERIES

Agriculture Insights

As one of the largest funders of agricultural projects in sub-Saharan Africa, we are fortunate enough to have access to some of the most sophisticated farmers and agri-processing professionals on the continent. Couple this with the fact that we are one of the largest card issuers in South Africa and have access to data-rich consumer insights; we are uniquely positioned to track the journey of agriculture projects from farm to fork.

INSIGHTS SERIES

Hospitality Insights

There’s no denying that the travel and Tourism industry was one of the hardest hit due to the various travel restrictions that were imposed, amongst other challenges. Listen to the Hospitality discussion between Liza Eustace, Head: Healthcare, Construction and Hospitality at Absa CIB, Marcel Van Aulock, CEO of Tsogo Sun Hotels and Kirby Gordon, Chief Marketing officer of FlySafair, as they unpack some of the challenges, implications and possibilities that face the sector.

NATURAL RESOURCES AND ENERGY

Where does Africa fit into the global resource mix?

Shirley Webber explains how Africa is emerging as a global force in oil and gas markets and its growth in oil and energy demand is forecast to outstrip China in the coming years.

HEALTHCARE

Vaccinating for Economic Recovery and Growth

Liza Eustace shares her insights on the importance of getting the country and the continent vaccinated against COVID19 in order to help boost economic recovery and growth.

TELECOMS INSIGHTS

How telecommunication companies are using technology in agriculture and healthcare in Africa

Connected phones can save lives and secure food. Prasanna Nana provides her thoughts on how telecommunication companies are aiding the Agriculture and Healthcare sector in Africa.

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