Multibillion dollar megaprojects have become increasingly common, with global planned capital expenditure on such projects set at more than USD $40 trillion by 2035. Africa alone requires an investment of USD $93 billion annually to close its infrastructure deficit.
Increasing investment by governments and parastatals show that the number, value and implementation speed of capital projects being deployed on the African continent is set to grow as never before.
Few regions in the world offer better growth potential for capital projects than Africa. A wealth of natural resources, rising commodity prices and improved standards of living in urban pockets—all set against a backdrop of growing political stability—are prompting governments and companies to invest heavily in large capital projects across the continent.
There are, however, a number of key challenges that organisations still need to overcome, particularly in the areas of regulation and taxation, financing, localisation, skills and logistics. Despite these obstacles, however, organisations can achieve high performance by adopting a business approach to capital project management in Africa.