Global capital project and infrastructure spending is expected to grow to more than US$9 trillion annually by 2025, up from US$4 trillion in 2012, according to ‘Capital project and infrastructure spending: Outlook to 2025’, a new report released this week by PricewaterhouseCooper (PwC).
Overall, close to $78 trillion is expected to be spent globally between now and 2025 on capital projects and infrastructure, the report, for which Oxfords Economics provided research support, said.
The study finds that during 2011-12, the global infrastructure market rebounded from the global financial crisis, and will continue to grow between 6-7% yearly to 2025.
The report analyses infrastructure spending across 49 of the world’s largest economies which account for 90% of global economic output.
It covers five industry sectors – extraction, utilities, manufacturing, transport and social – and forecasts their impact on seven major world economic regions (Western Europe, Latin America, Asia-Pacific, Middle East, sub-Saharan Africa, Former Soviet Union and Central and Eastern Europe).
The report says the following about sub-Saharan Africa:
- Nigeria and South Africa dominate the infrastructure market, but other countries like Ethiopia, Ghana, Kenya, Mozambique, and Tanzania are also poised for growth.
- A substantial increase in spending in the basic manufacturing sector is expected in sub-Saharan Africa.
- Transportation investment is expected to grow rapidly in South Africa over the coming decade, in particular in the road and rail subsectors
- Extraction spending in sub-Saharan Africa is projected to increase at 8% annually over the next decade.
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