SECTOR EXPERTISE Construction Absa | Corporate and Investment Banking > 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. DEALS DONE 15+ TOTAL CLIENTS 30 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 https://cib.absa.africa/wp-content/uploads/2020/07/file_example_MP3_700KB.mp3 Latest insights Unique perspectives on the factors impacting business today. RISK MANAGEMENT Centralising your FX Risk Remote working has broken down organisational borders, enabling multinational businesses to manage their FX risk from a single, centralised location. RISK MANAGEMENT Transactional Trends It has been said that 2020 was a year of survival and 2021 will arguably be the inflection point that presents pathways out of the pandemic. RISK MANAGEMENT Mitigating the Climate Crisis and Driving Inclusive Growth Africa is facing the triple challenge of inequality, climate change and the post-pandemic economic recovery. How can sustainable finance drive much-needed change? RISK MANAGEMENT Remittances: Africa’s Growing Market Cross-border remittances now outweigh foreign direct investment into Africa. What does the future hold for this key market? RISK MANAGEMENT How to Hedge Your Agri/FX Risk In a commodity-heavy industry like agriculture, what’s the best way to reduce the foreign exchange (FX) risk? Podcasts Understanding the current account deficit Find out what the current account deficit is and how it impacts the exchange rate. RISK MANAGEMENT The Next Step in FX Risk Management Most aspects of modern life are managed via smartphone. Now, with a new Absa Access Mobile app, businesses can manage their foreign exchange (FX) risk on the go, too. SUBSCRIBE FOR QUARTERLY UPDATES Analysis and data-driven insights for a changing world – delivered direct to your inbox. SUBSCRIBE NOW OUR TRACK RECORD Feedback from our clients “Absa provided us with advice on matters related to project finance and maximising interest income on excess cash. The service received has been outstanding and we have had better-than forecasted interest earnings as a result of the guidance and restructuring provided by Absa CIB. We have also received substantial support for decision making purposes when it comes to financial instruments held with Absa.” Dorper Wind Farm – South Africa President, Trade Association - Africa "Absa has been a partner bank to ACWA Power since our first successful project bid, providing the group with project financing, working capital as well as mandated as the account bank for the project. Absa has provided great value through its service, tailored solutions, valuable insights and advisory to the group." ACWA Power – UAE and Africa President, Trade Association - Africa "As a partner bank to Marubeni for over 6 years, the Absa team has provided awesome service in assisting us to establish our South Africa office. Their always-available attitude has supported us to facilitate our entry into both the South African and African Market." Marubeni Middle-East & Africa Power Limited – Japan President, Trade Association - Africa "Having a Pan-African banking partner is very important to the group as it gives us a competitive advantage in the market. We are now able to go for the projects we want because we have a partner bank that understands our business and is ready to help us materialise our growth ambitions in the continent." Gransolar Group – Spain President, Trade Association - Africa Contact us 0860 500 703 +27 (0) 10 211 3117 firstname.lastname@example.org Subscribe for quarterly updates Analysis and data-driven insights for a changing world – delivered directly to your inbox. Subscribe now Rate our website How would you rate your overall satisfaction with this website? 1 2 3 4 5 Great! Please tell us more What did you like most about the website? Insights offered Look and feel Variety of content Next Please tell us more Which of the following could be better? Content Look and feel Ease of use Next Please tell us more Were you able to find what you were looking for? Yes easily Slightly more effort than expected No Next Please tell us more How likely are you to recommend this website to someone? 0 1 2 3 4 5 6 7 8 9 10 0 - Not likely 10 - Very likely Thank you rating our website Your feedback is valuable for us.