Business Monitor International


Zimbabwe Infrastructure Report

Published 14 May 2014

  • 104 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
Zimbabwe Infrastructure Report

Zimbabwe's construction sector   is impeded by p olitical   uncertainty that continues to dissuade   investors . Despite vast resources , the country's construction industry remains weak compared with regional peers ,   as average growth over the forecast period (2014-2023) will be just 3.29%. C ash - rich Chinese companies have been the main fore ign investors to take a more risk - tolerant approach to Zimbabwe's power sector .

Zimbabwe holds vast potential as a frontier growth market in Southern Africa. However, it has been underperforming, with many foreign investors put off doing business in the country due to President Robert Mugabe and his regime. The mining sector, which is a key growth driver for the country's infrastructure, has in the past been hit hard by indigenisation drives. With Mugabe expected to execute these as part of his regime, there is much concern that the mining industry will not give its infrastructure counterpart the support it has previously been able to give. This, coupled with poor legal and regulatory frameworks, has seen only the most risk-tolerant enter the country. We expect growth to continue to underperform over the near team, with risks to the downside for the 3.4% construction growth that is forecast for 2014. Over the longer term, however, there is upside potential.

Key Trends And D evelopments

  • Zimbabwean coal mining company Makomo Resources plans to build a 600MW plant in Hwange, Zimbabwe, as early as 2015. Makomo had already been granted a licence to operate as an independent power producer, according to Energy and Power Development Deputy Minister Engineer Munacho Mutezo. Separately, work on the expansion of the Kariba South Power Station will start in August, according to Zesa Holdings' CEO, Josh Chifamba. Zimbabwe's current peak demand is about 2,200MW, but the country is generating only 1,200MW.

  • China's Sino Hydro won a USD1.3bn contract to add 600MW at the coal-fired Hwange power station in...

Table of Contents

BMI Industry View
7
SWOT
8
Infrastructure SWOT
8
Industry Forecast
10
Construction And Infrastructure Forecast Scenario
10
Table: Construction And Infrastructure Industry Data (Zimbabwe 2012-2017)
10
Table: Construction And Infrastructure Industry Data (Zimbabwe 2018-2023)
10
Energy & Utilities Infrastructure
15
Table: Energy & Utilities Projects Involving Chinese Companies
15
Transport Infrastructure - Outlook And Overview
17
Table: Mozambique Transport Corridors
19
Major Projects Table - Transport
23
Table: Planned And Ongoing Transport Projects, Southern Africa
23
Energy And Utilities Infrastructure - Outlook And Overview
28
Table: SAPP Members
35
Major Projects - Energy & Utilities
37
Table: Planned And Ongoing Energy & Utilities Projects, Southern Africa
37
Residential/Non-Residential Building - Outlook And Overview
44
Major Projects Table - Residential/Non-Residential Construction And Social Infrastructure
51
Table: Major Projects - Social Infrastructure & Construction
51
Industry Risk Reward Ratings
54
Zimbabwe - Risk/Reward Ratings
54
Rewards
54
Risks
54
Sub-Saharan Africa - Infrastructure Risk/Reward Ratings
55
Table: Sub-Saharan Africa Infrastructure Risk/Reward Ratings
64
Market Overview
65
Competitive Landscape
65
Table: Number Of Contractors In Southern Africa (excluding South Africa)
66
Table: Number Of Contractors In Southern Africa (by region & including South Africa)
66
Pulling On Historic Ties
67
China Trade Off, Other Asian Countries Follow Suit
68
South Africans Expanding Into Their Backyard
71
Global Infrastructure Overview
72
Middle East/North Africa Presents Strongest Investment Profile
72
Methodology
78
Industry Forecast Methodology
78
Sector-Specific Methodology
79
Risk/Reward Rating Methodology
83
Sector-Specific Methodology
84
Table: Infrastructure Risk/Reward Rating Indicators
84
Table: Weighting Of Indicators
85

The Zimbabwe Infrastructure Report features Business Monitor International (BMI)'s market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.

BMI's Zimbabwe Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Zimbabwean infrastructure and construction industry.

Key Benefits

  • Benchmark BMI's independent infrastructure industry forecasts for Zimbabwe to test other views - a key input for successful budgetary and planning in the Zimbabwean infrastructure market.
  • Target business opportunities and risks in the Zimbabwean infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Zimbabwe.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI's key industry forecasts, views and trend analysis covering infrastructure and construction, regulatory changes, major investments and projects and significant multinational and national company developments.

These are broken down into Construction (social, commercial and residential), Transport (roads, railways, ports, airports etc), and Energy & Utilities (powerplants, renewable projects, pipelines and so on).

Industry Trends

Analysis of latest projects across the infrastructure sector (covering the transport, utilities and commercial construction sub-sectors) - including:

Market Overview:Analysis of the key elements driving developments, including evaluations of current capacity and future requirements.

Building Materials Overview

The building materials overview provides industry trend analysis on the global and regional demands for building materials and the impact of this on the emerging and developed markets.

Business Environment Rankings

BMI's Infrastructure Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (construction companies, suppliers and partners) in the regional infrastructure market.

The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data point.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the infrastructure and construction sectors and within the broader political, economic and business environment.

BMI Industry & Economic Forecasts

Historic data series (2008-2012) and forecasts to end-2018 for all key industry and economic indicators, supported by explicit assumptions, plus analysis of key risks to the main forecast. Indicators include:

Construction: Industry value (US$bn); contribution to GDP (%); employment (`000); real growth (%).

Infrastructure: Value (US$bn); contribution to construction industry (%); real growth (%) of transport infrastructure (broken down by railways, airports, roads and bridges, ports and harbours) and energy and utilities (broken down by power plants and transmission grids, oil and gas pipelines, and water infrastructure).

Economy: Economic growth (%); nominal GDP (US$bn); unemployment (%); interest rates (%); exchange rate (against US$).

Company Profiles

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc