East Africa embarks on $27 billion mega projects


The East African region is currently undertaking 43 mega projects worth $27.4 billion, a new research reveals.

Out of top ten mega projects projects in East Africa, four are taking place in Kenya, according to the latest 6W research commissioned by The Big 5 Construct East Africa – organizer of Kenya’s National Construction Week exhibition.

  • The biggest of these projects, Kenya’s Konza Smart City, is worth USD 14.9 billion and is expected to be completed by 2030. The city will include the development of a central business district, a university campus, a residential community and parks over 5,000 acres of land.
  • Second in terms of value, the USD 3.8 billion worth Mombasa-Nairobi Railway project, is developing a 609 km long single-track standard-gauge railway between Mombasa and Nairobi. Designed to handle trains with a capacity of around 1,000 passengers with an average speed of 120 km/hr, the railway is expected to be completed by December 2017, also connecting the areas of Kilifi, Kwale, Taita-Taveta, Makueni, Kajiado, and Machakos.
  • Close to completion, the USD 900 million Lake Turkana Wind Power Project is a wind farm extending over 40,000 acres, with a 310MW power generation capacity. The project includes 365 wind turbines, associated with an overhead electric grid collection system and a high voltage substation.
  • Kenya is also strongly investing in its port infrastructure. In the Lamu County, three berths will be built by 2020 with an estimated value of USD 689 million. The Government is planning the construction of additional 29 berths with the help of private sector investments, reaching an overall value of around USD 5 billion.

With these and many more projects in the pipeline, Kenya and the East African region are a fertile land for construction business to flourish. Participating at the first edition of The Big 5 Construct East Africa, Fellaris Wambui from RAK Ceramics, commented: “The construction industry in the region is growing: it is a green market, and I believe it offers great opportunities for everyone who works in this sector.”

Exhibiting companies were able to sign several deals both onsite and after the event. “Through The Big 5 Construct East Africa, we finalised deals in Kenya, Uganda and Tanzania, one of which amounted to € 15,000,” Michael Xenons, Owner of Gauzer Energy, stated.

Similarly Volvo, the leading manufacturer of construction equipment, successfully closed deals selling three SDLG Wheel Loaders. “Construction of infrastructures is always an opportunity in East Africa taking into consideration the vast amount of developments happening there,” Ivo Silva, Construction Equipment Business Manager said.

Organised by dmg events Middle East, Asia & Africa, The Big 5 Construct East Africa will provide new upgraded features this year.

Beyond a dedicated VIP programme for Government officials and key buyers, the show will host a brand new pre-arranged meeting programme for exhibitors and pre-registered visitors.

To further foster business opportunities, a networking evening in the form of a Gala Dinner with key buyers will complement the three exhibition days displaying hundreds of innovative products and solutions. The free to attend and CPD (Continued Professional Development) certified workshop will return in 2017 with an even broader educational offer, focusing on the industry’s most compelling topics.

“The Authority recognises that construction, a socio-economic pillar of Kenya’s Vision 2030, contributes considerably to the country’s economy and is the cornerstone of development,” Wangui Kabala, Corporate Communications Manager of the National Construction Authority, said.

“This year’s National Construction Week will bring together critical stakeholders in the industry, allowing the exploration of key issues in construction research, as well as identifying solutions towards moving us forward. NCA’s partnership with dmg allows the Authority to leverage the vast experience and networks of an international exhibition, exposing the industry to potential investment opportunities as well as a platform to provide a free flow of ideas,” Ms Kabala added.

The official exhibition of Kenya’s National Construction Week is coming back at the Kenyatta International Convention Centre in Nairobi from 1-3 November 2017