Angola’s construction industry was severely affected in 2020, owing to the impact of the Coronavirus (COVID-19) pandemic on the progress of construction works, coupled with capital spending cuts and a fall in oil prices. According to the Instituto Nacional de Estatística (INE), the construction industry’s value-add declined by 41.4% year on year (YoY) in Q4; preceded by Y-o-Y declines of 37.1% in Q3 and 37.1% in Q2 2020. On the whole, Angola’s construction industry fell by 25.6% in real terms in 2020, following an annual growth of 5.1% in 2019. The industry’s output value, measured at constant 2017 US dollar exchange rates, decreased from US$25.3 billion in 2019 to US$18.8 billion in 2020.
The publisher expects the country’s construction industry to rebound this year, following a difficult 2020 for the industry; the expected improvement in economic conditions, supported by an upturn in confidence amid the vaccine rollout, will support growth in the industry. Thus, Angola’s construction industry is expected to grow by 3.6% in real terms in 2021.
Over the remainder of the forecast period, the industry is expected to register an annual average growth rate of 7.3% between 2022-2025, supported by investments in energy, transport, and mining infrastructure projects. The government targets increasing electricity access from 40% of the population in 2018 to 60% by 2025. To that end, it plans to generate 800MW of power from renewable energy sources by that year. In addition, the government's focus on developing new free trade zones (FTZs), to improve the business environment and attract foreign direct investment, is expected to support the industry's growth over the forecast period.
In December 2020, the parliament approved the General State Budget for 2021, which focuses on consolidating macroeconomic stability and reviving the economy. The budget includes a planned expenditure of AOA8.9 trillion (US$17.4 billion) in 2021 - 20.3% higher than the revised budget of 2020, equivalent to AOA7.4 trillion (US$15.5 billion). To combat poverty and enhance social inclusion, the government has allocated 39.5% of the latest budget towards social spending. In the coming years, the government will focus on improving the business sector, partly through a privatization program, with initial public offerings expected to commence in 2021. The government expects to receive revenue of AOA7.9 trillion (US$15.4 billion) in 2021, partly due to a notable uptick in tax inflows as the oil sector recovers. The projections are based on an oil price assumption of AOA20,000 (US$39 per barrel) this year. Overall, the government expects a fiscal deficit of 2.2% of GDP in 2021, which indicates a narrower shortfall compared to that of 4% of GDP in 2020.
The publisher expects the country’s construction industry to rebound this year, following a difficult 2020 for the industry; the expected improvement in economic conditions, supported by an upturn in confidence amid the vaccine rollout, will support growth in the industry. Thus, Angola’s construction industry is expected to grow by 3.6% in real terms in 2021.
Over the remainder of the forecast period, the industry is expected to register an annual average growth rate of 7.3% between 2022-2025, supported by investments in energy, transport, and mining infrastructure projects. The government targets increasing electricity access from 40% of the population in 2018 to 60% by 2025. To that end, it plans to generate 800MW of power from renewable energy sources by that year. In addition, the government's focus on developing new free trade zones (FTZs), to improve the business environment and attract foreign direct investment, is expected to support the industry's growth over the forecast period.
In December 2020, the parliament approved the General State Budget for 2021, which focuses on consolidating macroeconomic stability and reviving the economy. The budget includes a planned expenditure of AOA8.9 trillion (US$17.4 billion) in 2021 - 20.3% higher than the revised budget of 2020, equivalent to AOA7.4 trillion (US$15.5 billion). To combat poverty and enhance social inclusion, the government has allocated 39.5% of the latest budget towards social spending. In the coming years, the government will focus on improving the business sector, partly through a privatization program, with initial public offerings expected to commence in 2021. The government expects to receive revenue of AOA7.9 trillion (US$15.4 billion) in 2021, partly due to a notable uptick in tax inflows as the oil sector recovers. The projections are based on an oil price assumption of AOA20,000 (US$39 per barrel) this year. Overall, the government expects a fiscal deficit of 2.2% of GDP in 2021, which indicates a narrower shortfall compared to that of 4% of GDP in 2020.
This report provides detailed market analysis, information, and insights into Angola’s construction industry, including:
- Angola’s construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Angola’s construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope
This report provides a comprehensive analysis of the construction industry in Angola. It provides:
- Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Angola, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using the publisher's standardized valuation and forecasting methodologies.
- Assess market growth potential at a micro-level with over 600 time-series data forecasts.
- Understand the latest industry and market trends.
- Formulate and validate strategy using the publisher's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance
3 Context3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 COVID-19 Status
3.5 Risk Profile
4 Construction Outlook4.1 All Construction
- Outlook
- Latest news and developments
- Outlook
- Project analytics
- Latest news and developments
- Outlook
- Project analytics
- Latest news and developments
- Outlook
- Project analytics
- Latest news and developments
- Outlook
- Project analytics
- Latest news and developments
- Outlook
- Project analytics
- Latest news and developments
- Outlook
- Project analytics
- Latest news and developments
5 Key Industry Participants5.1 Contractors
5.2 Consultants
6 Construction Market Data
7 Appendix7.1 What is this Report About?
7.2 Definitions
7.3 CRI Methodology
7.4 The Publisher's Construction
- Contact the Publisher
List of TablesTable 1: Construction Industry Key Data
Table 2: Angola, Key Economic Indicators
Table 3: Angola, Commercial Construction Output by Project Type (Real % Change), 2016-2025
Table 4: Angola, Top Commercial Construction Projects by Value
Table 5: Angola, Industrial Construction Output by Project Type (Real % Change), 2016-2025
Table 6: Angola, Top Industrial Construction Projects by Value
Table 7: Angola, Infrastructure Construction Output by Project Type (Real % Change), 2016-2025
Table 8: Angola, Top Infrastructure Construction Projects by Value
Table 9: Angola, Energy and Utilities Construction Output by Project Type (Real % Change), 2016-2025
Table 10: Angola, Top Energy and Utilities Construction Projects by Value
Table 11: Angola, Institutional Construction Output by Project Type (Real % Change), 2016-2025
Table 12: Angola, Top Institutional Construction Projects by Value
Table 13: Angola, Residential Construction Output by Project Type (Real % Change), 2016-2025
Table 14: Angola, Top Residential Construction Projects by Value
Table 15: Angola, Key Contractors
Table 16: Angola, Key Consultants
Table 17: Angola, Construction Output Value (Real, US$ Million)
Table 18: Angola, Construction Output Value (Nominal, AOA Billion)
Table 19: The Publisher's Construction Market Definitions
Table 20: Risk Dimensions
Table 21: Ratings, Scores and Definitions
List of FiguresFigure 1: Sub-Saharan Africa, Construction Output (Real % Change), 2020 and 2021
Figure 2: Angola, Construction Projects Pipeline by Sector (US$ Billion)
Figure 3: Angola, COVID-19 Confirmed Cases
Figure 4: Angola, Risk Summary
Figure 5: Angola, Risk Regional Comparison
Figure 6: Angola, Construction Output Value (Real, US$ Billion, 2017 Prices and Exchange Rate), 2016-2025
Figure 7: Angola, Construction Output Value, by Sector (Real, US$ Million), 2016-2025
Figure 8: Angola, Construction Value-Add, Seasonally Adjusted (AOA Million, 2002 Constant Prices)
Figure 9: Angola, Economic Sentiment in the Construction Industry
Figure 10: Angola, Commercial Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 11: Angola, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 12: Angola, Wholesale Price Index (2014=100)
Figure 13: Angola, Industrial Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 14: Angola, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 15: Angola, Manufacturing Industry Value-Add, Seasonally Adjusted (AOA Million, 2002 Constant Prices)
Figure 16: Angola, Total exports (AOA Billion)
Figure 17: Angola, Industrial and Manufacturing Production Index, % Change YoY
Figure 18: Angola, Mining Production Index, % Change YoY
Figure 19: Angola, Revenue Generated from Diamonds (in US$ Million)
Figure 20: Angola, Infrastructure Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 21: Angola, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 22: Angola, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 23: Angola, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 24: Angola, Oil Extraction and Refining Sector Value-Add, Seasonally Adjusted (AOA Million, 2002 Constant Prices)
Figure 25: Angola, Electricity and Water Sector Value-Add, Seasonally Adjusted (AOA Million, 2002 Constant Prices)
Figure 26: Angola, Crude Oil Production, in Thousand Barrels Per Day (tb/d)
Figure 27: Angola, Crude Oil Exports (in Million Bbls) and Average Price (in US$/Bbl)
Figure 28: Angola, Institutional Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 29: Angola, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 30: Angola, Public Administration, Defense and Social Security Value-Add, Seasonally Adjusted (AOA Million, 2002 Constant Prices)
Figure 31: Angola, Residential Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 32: Angola, Residential Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 33: Angola, Real Estate and Rental Services Value-Add, Seasonally Adjusted (AOA Million, 2002 Constant Prices)
Figure 34: Angola, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 35: Angola, Headquarters of Key Consultants (% of Total Project Pipeline)
