Israel Africa | Business Guide | 2020

and agricultural products. In order to bring themall to market, to export them in sufficient quantities, and thus to start thriving, the continent needs better highways, improved access to air and sea ports, more industrial areas and warehouses, and so on. In sub-sectors such as engineering, planning, garbage disposal, and layinggas pipes, there are very few (or none) local active African companies. Here, Israeli construction companies can offer complete solutions, with experienced engineers and human resources fromthe home country itself or from Israel, depending on the skill level needed for the project. Often, bilateral cooperation is the key to acceleration of infrastructure projects and economic growth. In East Africa, five countries –Kenya, Uganda, Tanzania, Ruanda and Burundi - have reached agreements that will allow them to promote national and multinational entrepreneurship. With this united power they build cross-border-connecting roads, border checkpoints and new ports that make the daily passage of people and goodsmuch smoother. Similar processes take place in the south andwest of Africa, building knowledge, compliance and trust that directly contribute to the geopolitical status quo in the Continent. A Shift in Focus Trust is, of course, amain ingredient also inmaintaining an efficient government-business ecosystem– credit terms, governmental guarantees, accessibility of government officials, all express the will to progress with business development and population welfare. Moreover, countries such as Ethiopia, Tanzania, and South Africa, to name a few, are gradually shifting their focus towards developing themselves into service-driven economies. This shift in focus is projected to promote commercial construction activities in the region and create opportunities for infrastructure-related investments. The growing demand for leisure activities, amusement parks and luxury sports venues in these places is driving the growth of the travel industry throughout the region. Creating long-term projects of cement and concrete demands relatively smooth, business-friendly environment. Countries likeNamibia, Botswana, Ethiopia, Burkina Faso, Ivory Coast, andmore, put a real effort into having such an environment. Becauseof thenatureof constructionprojects, the results have shown in just a few years that they are a tremendous stimulus to growth inmerchandise and trade. However, an Israeli organization that wants to enter Africa in the infrastructure and construction sector will have to showpatience for this very reason. If the process of having a commercial presence in a single country can take time, bilateral ones can to take twice as much time. In the meantime, Africa keeps developing: bridges, floodgates, refineries, energy factories, and airportswere all built by Israeli companies inUganda andNigeria. Ghana and Angola are examples that show that this potential is considered significant. These projects reach hundreds of millions of dollars in costs but are the best long-term investments an African country can make. Constructing Africa: Statistics ●● In 2019 , the Africa construction sector counted no less than 452 projects valued at US$ 50 m or above. In total, these projects are worth US$ 497 bn. ●● Between 2014 and 2019 , cement demand in Africa (with the Middle East) grew at 5 . 5 percent annually. ●● As of June 2017 , South Africa's cement industry had an installed capacity of about 17 million metric tons. ●● Industrial buildings - In 2019 , heavy-duty factories in Gaborone (Botswana's capital) cost on average of about USD 1 , 366 per square meter to construct. ●● According to the forecast for 2021 , the commercial building automation market revenue in the Middle East and Africa will total about US$ 4 . 5 billion. 45