Sudan's economy faces a tough year in 2012 and this will impact the country's construction industry. Poor governance and taxation, combined with disruption to oil output, will hinder the development of projects. As a result, BMI expects construction industry value to stand at US$3.7bn for 2012, with a year-on-year (y-o-y) contraction of 19.5%. However, the sector will recover over the forecast period, rising to US$8.8bn by 2021.
Key developments in the sector include:
- The Ethiopian and Kenyan governments have signed an agreement for the construction of a standard gauge railway line between Lamu Port and Addis Ababa. A road is also expected to be constructed between the port and Isiolo in Kenya. The Lamu Port-South Sudan-Ethiopia (LAPSSET) project aims to help facilitate trade in the region.
- Three African heads of state attended the ground-breaking ceremony for the Lamu Port-South Sudan-Ethiopia-Transport and Economic Development Corridor (LAPSSET) project in Lamu on March 2 2012. The LAPSSET project includes the construction of a 1,710km railway line, an 880km highway and a 2,240km oil pipeline. It aims to improve transportation for both people and products between the three countries.
- Government officials of South Sudan and Kenya signed a deal for the construction of a pipeline to link South Sudan's oil fields with the Kenyan port of Lamu, the Kenyan government revealed in a statement on January 24 2012. South Sudan is to construct and own the pipeline, which is to be established through the Kenyan territory, with the two nations to discuss and agree on transit charges. Through the pipeline, South Sudan is seeking to end its dependence of exporting oil through Sudan.
A cabinet reshuffle and the killing of an influential rebel leader in an air strike are being cited by the government as evidence that it is broadening its base and winning the battle against insurgents. However, its popularity remains limited and armed opposition is at its strongest for years.
Tensions with Kenya and the rejection of an EAC membership bid are leaving Sudan's government increasingly isolated in the region diplomatically, while a comprehensive post-secession settlement with South Sudan appears increasingly far off.The price of this market report covers 4 quarterly reports on this sector. This quarterly report will be downloadable instantly as a PDF document, with the 3 remaining reports delivered at regular intervals throughout the year.
Click for Report details:Sudan and South Sudan Infrastructure Report Q3 2012