• No_Ads
Business
Oil and Gas spur infrastructure development in East AfricaPublish Date: Dec 10, 2013
Oil and Gas spur infrastructure development in East Africa
  • mail
  • img
newvision

By Billy Rwothungeyo

The recent discoveries of oil and gas in East Africa are boosting infrastructural developments in the East African region, according to the Deloitte on Africa: African Construction Trends Report 2013.

The quests for better transport infrastructure, reliable energy are also driving this growth, according to the report.

Of the projects surveyed throughout the entire African continent, the East African region accounted for 93 projects, representing 29% of all the surveyed works, with a value of about US$67.7b.

At the unveiling of the report in Kampala on Tuesday, Dr. Mark Smith, Deloitte’s partner for Infrastructure and Capital Projects noted however, that development of public sector projects such as road and railway works, ports development dwarf those orchestrated by the private players.

“In the East Africa region, over 70% are projects that are being built for the public sector,” he said.

Smith noted that with the shifting from exploration to production of oil reserves in the near future, developments in the region will increase even further and edge closer to the matching the investments in the public sector.

The Southern Africa region—boosting of Africa’s biggest economy; South Africa, leads the way with 124 projects underway, accounting for 38% of all African projects.

West Africa has attracted investment worth $15.3b, accounting to 5% of the continent’s projects.

North Africa, accounts for 7% of the surveyed infrastructure development valued at about $6.7b.

Pottas said the political upheaval that was started by the Arab spring was the major reason for North Africa’s lagging behind.

Similarly, Central Africa, which is a potential continental hydro power hub, hosts only 5% of the continents projects with a value of about $15.3b. The insecurity in the region is also responsible for this trend.

The report surveyed projects with the value of more than $50m, on which construction began, but was not completed before June 1 this year.

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Karuma dam facing shortage of skilled manpower
The contractor of the long-awaited Karuma hydropower dam has said the project is lacking electricians and skilled manpower to operate machines....
UTODA, consultant in sh157m row
A row has erupted between Uganda Taxi Operators and Drivers Association (UTODA) and a consultant who is demanding sh157m as unpaid fees....
East African tourist visa launched in Moscow
The issuance of the East African tourist visa has been launched in the Russian Federation by the embassies of Uganda, Kenya and Rwanda....
Nzeyi explains decisions in Commerce bank case
Prominent businessman Amos Nzeyi made his long-anticipated testimony in the case where he alongside other business partners purportedly changed the name of Kigezi bank to National Bank of Commerce....
Workers have a right to unionise
There are close to 40 registered labour and trade unions in Uganda, but few, if any can successful hold an annual general meeting due to dismal membership....
Tobacco farmers accused of wasting earnings
REVELATIONS made by MPs from tobacco growing areas depicted how excited tobacco farmers upon receiving cash bought alcohol and used it to wash legs and hoes...
WIll the national ID registration process be completed in the scheduled 4 months timeframe?
Yes
No
Can't Say
follow us
subscribe to our news letter