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 Absa leads the pack in support for SMEs Small- and medium enterprises (SMEs) are crucial to Africa’s and South Africa’s economy. SMEs urgently need bank funding support to aid their survival through the challenges brought on by the pandemic. Through funding, small businesses can participate and benefit from the new growth opportunities presented by the African Continental Free Trade Area (AfCFTA). At Absa, we are committed to all our clients (big or small) and are determined to give them access to limitless possibilities. RISK MANAGEMENT Africa driving the banking revolution Matt Harcourt, Chief Financial Officer, explains how Covid-19 has disrupted traditional banking channels, including in-branch networks. The pandemic has challenged us to reimagine new channels that will enable our clients’ success on the continent. Through developing Absa Access, our new online single sign-on platform, we have created innovative banking that solves real-world business problems in a rapidly evolving business environment. RISK MANAGEMENT It’s time to rethink how we do trade Absa’s Abdul Yassim (Head of sales trade and working capital South Africa) and Ruth Ngulube (Head of trade and working capital in Zambia) unpack Covid-19’s effects on trade and how it will bounce back. They explain that despite the challenges South Africa and the region face, there are emerging solutions that will bring new opportunities into the industry. RISK MANAGEMENT FX Risk Mitigation for SMEs Small businesses face big risks when they make international payments. Here’s how to mitigate those risks – and prevent possible financial disaster. RISK MANAGEMENT The Art and Science of Currency Research Accurate foreign exchange (FX) research is a vital business tool in volatile markets and uncertain times. How do currency researchers provide the insights that help clients plan ahead? RISK MANAGEMENT Banking on FX Efficiency Corporate treasurers are increasingly in the spotlight as businesses aim to negotiate these difficult times. How can banks help? RISK MANAGEMENT Where Next for Credit Markets? After a volatile 2020, what is the current state of South Africa’s listed credit markets – and what opportunities exist for issuers and investors? Subscribe for quarterly updates Analysis and data-driven insights for a changing world – delivered direct to your inbox. Name Company email 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 rsc.corpprc@absa.co.za Subscribe for quarterly updates Analysis and data-driven insights for a changing world – delivered directly to your inbox. 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