Witnessing a Second Bounce of the Ball
With its recent discoveries in abundant natural resources, East Africa is primed to become a central hub for businesses, excited by the growth in the middle class population, expanding into the region. It is no surprise that according to the 2014 IMF World Economic Outlook, six of the ten fastest growing economies globally were in Africa.
"At $128bn invested in 2014, Africa has become the world’s second largest FDI Destination" – EY Africa Attractiveness Survey 2015
No longer dependent on foreign aid, the opportunities for return on investment are surpassing the challenges presented in East Africa. This confidence is reflected by data that shows an increase in the level of funding from Governments and International Development Finance Institution’s (DFI’s) as the greatest sources of inward foreign direct investment into the continent.
Who Funds East Africa
Intra Africa: 3% (2013) 2% (2014)
Private Sector: 2% (2013) 4% (2014)
China: 17% (2013) 16% (2014)
Africa DFI's: 11% (2013) 16% (2014)
Government: 4% (2013) 17% (2014)
International DFI's: 24% (2013) 37% (2014)
(African Construction Trends Report 2014)
The value of so-called “Mega Projects” under construction is staggering, having grown from $222bn (2013) to $326bn (2014). Eastern and Southern Africa currently represent over two-thirds of all new construction developments from energy and power, to real estate and mixed-use developments.
Regional Dominance in Mega Projects
Sunbird believes that it is perfectly positioned to offer an integrated suite of construction, property and support services that cater to the growing and evolving needs of enterprises operating in East Africa. Through our knowledge of the landscape, Sunbird believes that the strong macroeconomic fundamentals, rising consumer spending and improvements in political governance will lead to a “Second Bounce of the Ball” - with a multitude of new companies arriving into the region - that was also seen in other BRICs and MINTs countries.
The time for East Africa’s success story is now and Sunbird is ready to capitalise on its undoubted potential.