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BMI View: Zimbabwe's construction industry is posting robust growth, but not the spectacular growth expected of such a frontier market. Growth of 6.3% on average per year is anticipated between 2013 and 2017, which is far below its more established regional peers. The country's high risk is deterring private investors, as policy uncertainty and political risk make Zimbabwe an unattractive new market, despite vast potential. The most activity has been seen from risk tolerant and highly liquid Chinese construction companies, who were awarded a number of contracts to develop the country's power sector over 2012. With elections coming up in the first half of 2013, we believe risks remain to the downside for Zimbabwe over the short term.
Zimbabwe holds vast potential as a frontier growth market in Southern Africa. However, it has been underperforming against potential, due most prominently to investor risk. The uncertain policy environment coupled with elections due in 2013 have caused many potential investors to hold off entering the country. Uncertainty surrounding enforcement of the indigenisation law 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 our 6.4% growth that is forecast for 2013. Over the longer term, however, there is upside potential.
BMI View: Zimbabwe's construction industry is posting robust growth, but not the spectacular growth expected of such a frontier market. Growth of 6.3% on average per year is anticipated between 2013 and 2017, which is far below its more established regional peers. The country's high risk is deterring private investors, as policy uncertainty and political risk make Zimbabwe an unattractive new market, despite vast potential. The most activity has been seen from risk tolerant and highly liquid Chinese construction companies, who were awarded a number of contracts to develop the country's power sector over 2012. With elections coming up in the first half of 2013, we believe risks remain to the downside for Zimbabwe over the short term.
Zimbabwe holds vast potential as a frontier growth market in Southern Africa. However, it has been underperforming against potential, due most prominently to investor risk. The uncertain policy environment coupled with elections due in 2013 have caused many potential investors to hold off entering the country. Uncertainty surrounding enforcement of the indigenisation law 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 our 6.4% growth that is forecast for 2013. Over the longer term, however, there is upside potential.
BMI Industry View
SWOT
Industry Forecast
Construction And Infrastructure Forecast Scenario
Table: Zimbabwe Construction And Infrastructure Industry Data, 2011-2016
Table: Zimbabwe Construction And Infrastructure Long Term Forecasts, 2017-2022
Transport Infrastructure - Outlook And Overview
Table: Mozambique Transport Corridors
Table: Planned And Ongoing Transport Projects, Southern Africa
Energy And Utilities - Outlook And Overview
Table: Planned And Ongoing Energy & Utilities Projects, Southern Africa
Residential And Non-Residential Building - Outlook And Overview
Table: Major Projects - Residential/Non-Residential Building
Industry Risk Reward Ratings
Regional Risk Reward Ratings
Table: Sub-Saharan Infrastructure Business Environment ratings
Market Overview
Competitive Landscape
Table: Number Of Contractors In Southern Africa (exc. South Africa)
Global Industry Overview
Europe, Middle East and Africa
Dubai Confidence Up, Mega-Spending Status Quo In The Region
Low Yields Push Capital Further Into Infrastructure
Turkey Shines As South Africa and Poland Struggle To Recover
Natural Resource Boom Drives SSA Infrastructure Investment
Latin America
Table: Planned Elections: Latin America 2013
Asia
Methodology
Data Methodology
Construction
Capital Investment
Table: Infrastructure Business Environment Indicators
SWOT
Industry Forecast
Construction And Infrastructure Forecast Scenario
Table: Zimbabwe Construction And Infrastructure Industry Data, 2011-2016
Table: Zimbabwe Construction And Infrastructure Long Term Forecasts, 2017-2022
Transport Infrastructure - Outlook And Overview
Table: Mozambique Transport Corridors
Table: Planned And Ongoing Transport Projects, Southern Africa
Energy And Utilities - Outlook And Overview
Table: Planned And Ongoing Energy & Utilities Projects, Southern Africa
Residential And Non-Residential Building - Outlook And Overview
Table: Major Projects - Residential/Non-Residential Building
Industry Risk Reward Ratings
Regional Risk Reward Ratings
Table: Sub-Saharan Infrastructure Business Environment ratings
Market Overview
Competitive Landscape
Table: Number Of Contractors In Southern Africa (exc. South Africa)
Global Industry Overview
Europe, Middle East and Africa
Dubai Confidence Up, Mega-Spending Status Quo In The Region
Low Yields Push Capital Further Into Infrastructure
Turkey Shines As South Africa and Poland Struggle To Recover
Natural Resource Boom Drives SSA Infrastructure Investment
Latin America
Table: Planned Elections: Latin America 2013
Asia
Methodology
Data Methodology
Construction
Capital Investment
Table: Infrastructure Business Environment Indicators
