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. 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. Read more 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. Read more 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. Read more 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. Read more 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. Read more 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. Read more Subscribe for quarterly updates Analysis and data-driven insights for a changing world – delivered direct to your inbox. Name Company e-mail address I consent to provide my personal information being collected and processed for this subscription. I Accept the Terms and Conditions 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 email@example.com Subscribe for quarterly updates Analysis and data-driven insights for a changing world – delivered directly to your inbox. 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