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Latest Africa Construction Cost Guide published

Latest Africa Construction Cost Guide published

The latest Africa Property and Construction Cost Guide has been released by AECOM, an American multinational engineering firm, in partnership with the Bureau of Economic Research at Stellenbosch University in South Africa. The 2019/2020 guide outlines the current state of Africa’s construction industry and aims to facilitate the correct transformational changes.

“Our goal is to unlock the transformational change and innovation required to move the industry forward. In each of the 30 editions, we’ve shared our knowledge of Africa’s economy and construction sector, contributing to the wider discussion on how to unlock investment opportunities across Africa,” says AECOM Africa business line director Dean Narainsamy.

Building cost rates section is popular

The most popular section of the Africa Property and Construction Cost Guide is always the building cost rates. “Ranging from commercial and retail developments to industrial and healthcare facilities, we share our insight into the inclusive building costs rates per metre squared, allowing our clients to quickly estimate the building cost of potential assets and ultimately its return on investment,” explains Narainsamy.

The building cost rates section is based on extensive research completed by the Bureau of Economic Research. Bureau of Economic Research. This section of the Cost Guide is a measure of the percentage change in average building costs, based on an analysis of the rates in accepted tenders supplied by quantity surveyors. This information can be used to reduce uncertainties around the evaluation of construction contracts and compare prices of tenders.

Financing infrastructure is key in Africa

The Cost Guide also reveals that there is a need to finance infrastructure in Africa. A number of countries have already started to do this in order to maintain economic growth. The job creation that comes with financing construction is an important contributor to this growth. By financing infrastructure, particularly for power, water and transportation services, Africa can ease the burden on these facilities that are already under immense pressure.

Africa’s combined gross domestic product (GDP) growth is expected to reach three to four percent in the 2019/2020 financial year. Some individual countries are expected to grow their GDP as much as eight percent. This will benefit the construction industry as new facilities, ports and infrastructure will need to be built in order to maintain economic growth. The steady growth of the construction sector is already evident in East Africa.

The Cost Guide gives a positive outlook on Africa’s construction sector. It concludes that with a stable increase in infrastructure projects, the opportunities for investment and better service delivery will also rise in 2019 and beyond. Updating its facilities and buildings will make Africa a more attractive prospect for multinational businesses and conglomerates looking to invest.


LafargeHolcim is a leading building materials and solutions company that has been operating in international markets for decades. We produce cement and aggregates for construction projects, ranging from small affordable housing developments to large-scale infrastructure projects such as high-rise buildings, dams and bridges. 


LafargeHolcim Tanzania has been supplying the country and neighbouring countries with our world-class Tembo cement brand for over 30 years. Our head office and fully-integrated plant are located in Mbeya, Southwest Tanzania.


At LafargeHolcim Tanzania, we believe customers come first. We listen to your specific requirements to supply and develop the best solutions for your needs. As the new leader in building materials, you can also rely on our cutting-edge research and development capabilities that have resulted in the finest materials for your construction projects, whether large or small.


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