BMI View: In the face of the dual headwinds of lower coal prices and constrained government revenues, we forecast growth in Mozambique's construction sector will slow in 2015 compared to the previous year, with 6.3% forecast in real terms. Despite lower coal prices, we expect the mining sector to continue to be the major source of investment, although note miners, as well as the prospective players in the offshore gas sector, may lessen their planned capital expenditure given depressed commodity prices, which is the major downside risk to our positive forecasts for the construction sector.
With the country's low quality infrastructure, the government has made its improvement a top priority and promoted private investments. Currently, about USD20bn of transport projects are under way, which include railway and port construction and expansion, as well as critical road upgrades. Considering the country's vast and growing natural resource reserves, with natural gas leading the way, the country is experiencing another USD10bn worth of power projects as growing industrial activity demands greater electricity supply with recovered hydrocarbons acting as feedstock. This includes electrification programmes, as well as power plants. The country is also boosting its export capabilities for coal and natural gas (in liquefied form). This affects primarily the coal-rich Tete province, attracting foreign players. A danger of current infrastructure projects, in this regard, is their focus on serving the natural resource industry, meaning an uneven infrastructure build-up, especially during a time of depressed commodity prices.
Key Trends And Developments
3,600MW of increased hydropower generation capacity, numerous coal export rail lines and ports as well as plans to maintain and upgrade 25,000km of roads indicate the potential for infrastructure investors and construction firms exposed to Mozambique.
While the issuance of a eurobond in 2014 saw growth in the sector...
The Mozambique Infrastructure Report features BMI Research'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 Mozambique Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Mozambican infrastructure and construction industry.
- Benchmark BMI's independent infrastructure industry forecasts for Mozambique to test other views - a key input for successful budgetary and planning in the Mozambican infrastructure market.
- Target business opportunities and risks in the Mozambican infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Mozambique.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
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 national and multinational company developments. These are broken down into construction (social, commercial and residential), transport (roads, railways, ports, airports, etc), and energy & utilities (powerplants, pipelines and so on).
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 Forecasts
Historic data series (up to 2012) and forecasts to end-2024 for all key industry indicators, supported by explicit assumptions, plus analysis of key developments in the market and risks to the main forecasts. Indicators include:
Construction: Industry value (USDbn); contribution to GDP (%); total capital investment (USDbn); real growth (%).
Construction industry real growth forecasts (%) and industry value (USDbn) forecasts for industry sectors are split into Residential and Non-residential and Infrastructure sectors. Where the data is available for particular countries the infrastructure is further broken down into indicators for the transport subsectors of roads, railways, airports and ports and the energy and utilities sub-sectors of power plants and transmission grids, oil & gas pipelines and water infrastructure. This dataset is unique to the market.
The reports also include analysis of latest projects across the infrastructure sectors (transport, utilities, commercial construction).
BMI’s Infrastructure Risk Reward Index
BMI’s Risk Reward Index provides investors (construction companies, suppliers and partners) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points. These provide indices of highest to lowest appeal to investors, with each position explained.
An assessment of the competitive landscape and key challenges to entering the market. Details of the largest companies active in the sector across the sub-segments of the industry, including the key financial figures from some of the largest players in the sector.
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 company 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.
The Infrastructure reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.