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Article

1 Apr 2020

Author:
Belt and Road News

Africa: Construction industry faces disruption stemming from China shutdown caused by COVID-19 outbreak

“Construction in Africa hampered by China-related Disruption”, 21 March 2020

The coronavirus has been slow to take root in Sub-Saharan Africa (SSA), but the number of cases is now beginning to grow and the construction industry is facing disruption stemming from the China shutdown…

… Although the direct impact from the coronavirus has been limited to date, many countries in Africa are exposed to the knock on effects from the construction shutdowns in China.

In recent years, China has emerged not only as SSA’s largest trading partner but as a large and fast-growing source of aid and the largest source of construction financing…

The coronavirus outbreak presents a downside risk for short-term growth in the region, particularly in Ghana, Angola, South Africa, and Nigeria, which are reliant on China’s demand for their commodities exports.

With mass production shutdowns and supply chain disruptions due to port closures in China, the effects are already being felt, while Africa’s access to industrial components and manufactured goods from the region has been hindered.

Construction companies have also suffered a lack of access to skilled personnel from affected regions, who have been unable to travel to project locations due to travel bans, quarantines and self-isolation, and this will delay the completion of projects…