Construction and Property Corner ::: 03 August 2023

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Construction and Property  Corner ::: 03 August 2023 

 


 

 


 <https://www.hyundai.co.zw/> 

 


 

 


 

ü  IPP seeks to construct 100MW wind farm

ü  1 800 shortlisted for title deeds in Caledonia

ü  Simbisa spends US$10m to open 45 new outlets

ü  Retail, residential space demand dominates real estate

ü  ZBCA ready to contribute towards infrastructural projects 

ü  ‘Focus more on retail development’

ü  Saudi material cost trends: Iron drops 28%, cement rises over 2% in Q2
2023

ü  Iraq’s Health Ministry to speed up construction of 3 hospitals in Baghdad

ü  Iraq’s submerged tunnel to be 2.4km long

ü  UAE: Lush greenery, urban farming; townhouse project launched at Expo
City

ü  UAE construction sector records 9.2% growth in Q1

ü  A successful Big 5 Construction Southern Africa

ü  Africa backs $514bn in new city projects to solve urbanisation challenges

ü  Chinese Tire Manufacturer Sentury To Begin Construction of First Morocco
Factory

 


 

 


 <https://www.willdale.co.zw/> IPP seeks to construct 100MW wind farm

INDEPENDENT power producer, Centragale (Pvt) Limited is seeking authority to
construct a massive 100-megawatt wind farm to supply generated electricity
to Dinson Iron and Steel Company Private Limited, a Chinese company that is
developing a US$1,5 billion steel firm in Manhize near Mvuma.

 

The project is touted as Africa’s largest integrated steel manufacturing
plant.

 

Disco has indicated that their first blast furnace would be on stream by
November this year.

 

In a notice, the energy regulatory authority, the Zimbabwe Energy Regulatory
Authority (Zera) said it has received an application from Centragale
(Private) Limited to construct, own, operate and maintain a 100MW wind farm
at Mamina, Mhondoro Ngezi District.

 

“Notice is hereby issued in terms of section 4(3) of the Electricity
(Licensing) Regulations, 2008 published in Statutory Instrument 103 of 2008
that the Zimbabwe Energy Regulatory Authority (Zera) has received an
application from Centragale (Private) Limited to construct, own, operate and
maintain a 100MW wind farm at Mamina, Mhondoro Ngezi District in Mashonaland
West Province.

 

“The electricity generated will be sold to Dinson Iron and Steel Company Pvt
Ltd. The project will be connected to the grid through construction of a
30-kilometre 132kV Double Lynx line from the Centragale Wind Power Plant to
the proposed Dinson 330/132/33kV Substation,” said Zera.

 

The licence application by Centragale (Private) Limited was done in terms of
the provisions of Sections 42 and 46 of the Electricity Act (Chapter 13:
19).

 

When operating at full throttle, the steel plant is expected to produce 1,2
million tonnes annually with the first phase of the investment processing
600 000 tonnes of carbon steel per year for local and export markets.

 

As a result of the development of the steelworks in Manhize, a new town is
sprouting with a number of infrastructural development projects also coming
on board.

 

The Government has also approved a master plan for the development of a new
town between Mvuma-Chivhu and Manhize amid growing interest from
industrialists, banks, and other service providers to be part of the massive
investment.

 

It is hoped that the new town to be established for about 30 000 residents
would be a game changer for Zimbabwe.

 

Zimbabwe has witnessed modest investments in renewable energy by local
private investors, particularly in solar as the country seeks to boost
renewable capacity to 1 100MW by 2025.

 

Major mining entities are leading in terms of solar power solutions by
constructing private plants with significant projects coming up in the gold
sector.

 

For instance, Caledonia Mining Corporation put up a 12MW solar plant in
Blanket Mine in Matabeleland.

 

The Government’s initiative to revive idle mines is expected to increase
demand for electricity from mining and industry, which continue to be the
leading consumers of the fuel.

 

The Zimbabwe National Renewable Energy Policy, launched in 2019 set the
target of achieving a renewable capacity of 1 100MW or 16,5 percent of
overall electricity supply by 2025.

 

The policy also aims to have installed 250 000 solar geysers, increase the
use of the institutional and domestic biogas digesters, promote use of solar
mini-grids and solar water pumping solutions as well as boost the use of
renewable technologies.

 

To encourage investments into renewables, Zimbabwe is offering incentives
including duty and tax exemptions and prescribed asset status to pension and
insurance companies.-chronice.c.zw

 

 

 

 

1 800 shortlisted for title deeds in Caledonia

At least 1 800 stand owners in Caledonia have been shortlisted for title
deeds as the Second Republic walks the talk on the regularisation of
settlements in line with its National Housing Delivery Policy anchored in
the National Development Strategy.

 

This comes as Epworth residents continue to receive title deeds in batches
after President Mnangagwa initiated the process when he delivered the first
350 title deeds to residents of Epworth in April this year as the Government
steps up its empowerment drive.

 

Speaking after the Tuesday Cabinet meeting, Information, Publicity and
Broadcasting Services Minister Monica Mutsvangwa said mapping of settlements
had been done against the approved layout plans. “The Zimbabwe National
Geo-Spatial Agency (ZINGSA) has completed the targeted mapping of all the
settlements in Epworth, Harare South and Caledonia in Harare Metropolitan
Province, Cowdray Park in Bulawayo, and Gimboki in Mutare. Title deeds have
already been issued to some beneficiaries in Epworth, while in Caledonia 1
800 beneficiaries have been shortlisted for issuance of title deeds,” said
Minister Mutsvangwa.

 

She said progress recorded in Phase 2 of the Emergency Road Rehabilitation
Programme (ERRP 2) included 92,6 km of road that had been constructed,
re-constructed or rehabilitated, 1 218,5 km gravelled or re-gravelled, 4
556,7 km having had potholes patched, 2 282 drainage structures constructed,
and bush and verge clearing was done on 3 860 km.

 

“Government has continued to provide funds to ensure continuation of
flagship projects such as Cowdray Park and the Beitbridge-Bulawayo-Victoria
Falls Road. On a related matter, the blitz maintenance of roads leading to
polling stations is on course to meet targets to ensure that they are
accessible ahead of the polling date, 23 August,” she said.

 

“On the Wetlands Management Programme, awareness campaigns carried out by
the Environmental Management Agency (EMA) have resulted in voluntary
requests from landowners for ecological assessments of their properties,
particularly in Harare Metropolitan Province.” The land users were advised
of the appropriate protective measures to apply when using the land in a
permitted way.

 

She said Government will not relent on prosecution of land and space barons.

 

“Regarding the prosecution of land and space barons, and finalisation of the
Indigenisation and Economic Empowerment Bill, the number of dockets opened
for land baron cases has increased to 270 from the 188 dockets reported in
March 2023. The total number of arrests has risen to 367, compared to the
347 previously reported, while cases pending trial stand at 89, up from 77.

 

“Finalised cases increased to 137 from the 68 reported in March 2023.
Concerning amendment of the Indigenisation and Economic Empowerment Act,
Cabinet advises that the Ministry of Industry and Commerce has prepared the
relevant draft Bill. The Bill will soon be presented to stakeholders as part
of the consultative process,” she said.

 

Government policy was to ensure that suitable facilities were in place where
micro and small businesses could operate safely.

 

“Under housing cooperatives and the provision of workspaces for micro, small
and medium enterprises, Cabinet notes that the Great Zimbabwe University has
submitted a draft report on the review of the cooperative model in Zimbabwe,
which is being validated.

 

“The provision of decent workspaces to micro, small and medium enterprises,
has begun to pick up momentum, as indicated by progress at the following
projects: Mutapa Factory Shells, Gweru; Gwanda Vendor Marts, Gwanda Urban;
Chiredzi SME Centre; Masvingo Safe Market; and Chikomba SME Hub.”

 

In another matter, Minister Mutsvangwa said Government had released funds
for establishment of gold centres.

 

“Government has released funds for the operationalisation of three gold
centres at Makaha in Mashonaland East, Mukaradzi in Mashonaland Central and
Penhalonga in Manicaland. This will go a long way in ensuring that gold
produced by artisanal miners is efficiently mobilised, thus increasing
revenues accruing to Government as part of the process towards the
attainment of a US$12 billion mining industry this year,” she said.-herald

 

 

 

 

Simbisa spends US$10m to open 45 new outlets

QUICK service restaurant operator, Simbisa Brands, spent an estimated US$10
million to open 45 new outlets across Zimbabwe during the financial year
ending June 30, 2023.

 

The Victoria Falls Stock Exchange (VFEX) listed company operates across
Africa including Kenya, Ghana, Zambia, Malawi, Eswatini, Namibia, and the
Democratic Republic of Congo.

 

Simbisa Brands chief executive officer Warren Meares said this year’s number
of new outlets compared favourably to the 43 that were opened in the
financial year to June 2022.

 

“As part of our ongoing expansion drive, we opened 45 new outlets in
Zimbabwe by the end of June this year spending an estimated US$10 million.

 

“Close to 500 jobs have been created as a result and we now employ over 5
000 people,” he said.

 

Simbisa owns restaurant chains that include Fish Inn, Chicken Inn, Pizza
Inn, Bakers Inn and Creamy Inn, as well as franchises for Nandos and Steers
of South Africa.

 

In Zimbabwe, Simbisa now operates over 300 stores up from 291 previously.

 

Commenting on the business environment for the past six months, Mr Meares
said:

 

“The past six months have been exciting, there have been a lot of
improvements in terms of the operating environment, which has been very
positive.

 

“Liquidity in the market and availability of stock have also improved a
great deal.”

 

Given the prevailing operating environment, Mr Meares said authorities
needed to continue stabilising the currency and power supply.

 

Zimbabwe’s power supply has improved considerably following the recent
commissioning of Hwange Power Station’s units 7 and 8 at Hwange, which are
now both on stream.

 

More output is also being derived from Kariba Hydro Power Station and
Independent Power Producers (IPPs).

 

The domestic economy is currently enjoying prolonged stability following the
raft of policy measures implemented by the Government.

 

In the past few weeks, prices of goods and services in the market have been
falling while the local currency has been appreciating against the United
States dollar.

 

Policy interventions authorities implemented include tightening the monetary
policy, liberalising the exchange rate regime, fine-tuning the auction
system as well as transferring external sector obligations from the Reserve
Bank of Zimbabwe to the Treasury.-herald.co.zw

 

 

 

 

Retail, residential space demand dominates real estate

RETAIL and residential properties continue to dominate investments and
demand in Zimbabwe’s real estate sector, according to advisory firm IH
Securities’ latest report.

 

The stock broker said despite the low consumer disposable incomes in the
country, the retail sector has remained resilient.

 

“The retail and residential sectors continue to benefit from increased
demand for quality space.

 

“Resultantly, these sectors continue to witness a relatively higher level of
investment and developmental activity as investors are attracted by improved
space absorption and yields,” IH Securities said in its report.

 

Rental rates for retail spaces in the central business district range from
US$20 to US$25 per square metre due to increased demand. The rates for the
suburban locations have remained largely stagnant at around US$15 and US$20
per square metre, real estate company Knight Frank Zimbabwe said.

 

“In recent times, there has been a surge in ‘maRunner’ (middlemen) who sell
clothes, consumables, and other niche items at a discounted price to drive
out higher volumes.

 

These retail traders have driven the demand for space in the CBD. The
average rental yield was 7 percent in 2022,” IH Securities noted.

 

The residential sector has been the best-performing sector after registering
the highest number of transactions in 2022 and also constituted the bulk of
activity in the construction sector.

 

“The growth was fuelled by diasporans through remittances, employer-assisted
mortgage schemes, and business executives who have the financial means to
build their own houses,” IH Securities said.

 

The average rental yield for residential real estate in 2022 was 8 percent.

 

Locally, the office sector is divided into CBD offices and suburban offices,
with the latter being those located in residential areas close to the city
centre such as Eastlea, Hillside, Milton Park, Belgravia, and Avondale in
Harare.

 

CBD offices, IH Securities noted in its report, are the worst-performing of
the two sub-categories owing to the policy position allowing residential
suburbs in proximity to the CBD to operate as offices.

 

Such policy changes have caused the migration of offices from the CBD into
the suburban areas, which has led to an oversupply of CBD office buildings
vis-a-vis demand.

 

Consequently, there have been high vacancy rates and unsustainably low
rental rates for CBD offices.

 

“For suburban offices, there has been a boom in their demand and high
average occupancy rate and according to Knight Frank, most landlords in the
northern suburbs are experiencing a 100 percent occupancy rate for their
spaces.

 

“Market rentals in suburban parks range between US$8,00 and US$13,00 per
square metre per month.

 

“CBD office rental rates range between US$5 and US$8 per square metre per
month depending on the size and the state of the space. The average rental
yield was 8 percent in 2022,” the report said.

 

While office demand from big corporations has been falling, demand from SMEs
is growing.

 

CBD property owners have been repurposing their buildings to accommodate
small and medium-sized enterprises. Consequently, vacancy rates have
remained high because demanded space is smaller.-herald

 

 

 

 

ZBCA ready to contribute towards infrastructural projects   

THE Zimbabwe Building Contractors Association (ZBCA) which recently opened a
Matabeleland regional office says its members stand ready to contribute
towards infrastructural projects in the country.

 

The regional office seek to increase representation of its members. ZBCA is
a non-profit making organisation established in 1985 with a mandate to
represent emergent building contractors in the categories of building
construction and civil engineering, electrical engineering, mechanical
engineering and structural steel engineering. The association registers
supplier and service providers as association members.

 

It’s purpose is to ensure that members uphold the highest standards of
workmanship in the construction business.

 

In an interview during the official launch of the Matabeleland region
offices in Bulawayo last week, ZBCA president Mr Petros Kagwere said the
opening of the office is a milestone to ZBCA as it goes in line with
President Mnangagwa’s agenda of leaving no one and no place behind.

 

Robust infrastructure development is at the heart of the Second Republic’s
economic transformation agenda in line with the country’s vision to achieve
an upper middle-income status by 2030.

 

 

 

He said the association seeks to have a strong and visible footprint in the
southern region. Added to that, Mr Kagwere said the construction industry is
experiencing growth under the Second Republic. To that end, the association
is ready to have an input in infrastructure development in the country.

 

“The construction industry is doing very well especially that the Government
has taken a new dimension in building the country and as ZBCA we have taken
advantage of the Government support where we are saying let’s take part as
an association,” he said.

 

“The launch of this office is a milestone to the association and the
construction industry at large. We have got a service buy-in to the new
trajectory where we are saying we want to put a footprint across the
southern region because we did that in other regions.

 

“In the southern region we are seeing enormous activities in infrastructure
development,” he said.

 

ZBCA provides mentorship and grooming of construction players including
women and youths so that they become eligible to participate in Government
tenders.-chronicle

 

 

 

 

‘Focus more on retail development’   

THE rapid growth of the wholesale and retail sectors is set to reconfigure
the Bulawayo and Harare central business districts as traders are taking
much of tradable spaces and property investors are urged to continue to
focus more on retail development and less on offices in city centres.

 

Most buildings in the central business districts of cities and towns are now
being converted into small cubicles, which are then leased out to interested
occupants.

 

The model buttresses the growing trend of shopping malls whose sizes differ
depending on the location.

 

 

The development is also creating good business for the construction sector
and its supply chain through renovations and provision of building
materials, which creates jobs.

 

On the other hand, the CBD office space has been facing challenges with
voids increasing as businesses migrated to suburban offices or office parks
that are cozier.

 

 

Imbali Mall

 

Equities research and advisory firm, IH Securities noted in its latest, Real
Estate Sector Report August 2023 that the wholesale and retail sector which
is the biggest contributor to the gross domestic product (GDP) at 20.7
percent has shown 10.9 percent growth on a year-on-year basis according to
ZimStat.

 

It said it expects the demand for small spaces to increase and occupancy
levels in the CBDs to improve adding that property investors must therefore
continue to focus more on retail development and less on offices in the CBD.

 

 

“Moving forward, we expect big companies and other formal businesses to
continue moving from the CBDs to suburban offices where there is freedom
from over-zealous parking attendants and touts and companies can provide
individual water and backup power solutions.

 

“The off-takers of the vacant space will be SMEs. We expect continued
repurposing of office buildings in the Harare and Bulawayo CBDs due to the
growth of the wholesale and retail sector,” reads part of the report.

 

On the retail front, IH Securities observed that despite the low consumer
disposable incomes in Zimbabwe, the retail sector has been resilient.
Informal traders have caused a boom in the retail market and vendors are
flooding the CBD to maximise on the high volumes of traffic. According to
Knight Frank Zimbabwe, rental rates for retail spaces in the CBD range from
US$20.00 to US$25.00 per square metre due to increased demand.

 

It said rental rates for the suburban locations have generally remained
stagnant around US$15,00 to US$20,00 per square metre.

 

In recent times, there has been a surge in ‘maRunner’ who sell clothes,
consumables, and other niche items at a discounted price to drive out higher
volumes. These retail traders have driven the demand for space in the CBD.

 

The average rental yield was 7 percent in 2022.

 

 

On industrial real estate, it said the manufacturing sector continues to
face competition from imported goods, therefore storage, distribution and
logistics for the imported goods has become a predominant use of space.

 

However, there is currently a short supply of industrial space leaving
demand unfulfilled, it noted.

 

“Rental rates have remained stable at around US$3.00 per square metre per
month for units up to 1000 square metres while larger spaces are achieving
in excess of US$1.00 per square metre. The average rental yield was 11
percent in 2022.

 

 

 

The securities firm further noted that demand for industrial real estate,
particularly warehouses to store imported goods, has been high, outstripping
supply.

 

“We expect industrial rental rates to continue to increase in the future. US
dollar inflation currently stands at 8.5 percent. Average rental yield
across offices, retail, industrial, and residential was also 8,5 percent in
2022.

 

“Only industrial real estate outperformed the inflation rate. Assuming all
the rentals are being paid in USD, property serves as a great store of value
and hedge against inflation.”

 

Consequently, it said pension funds in Zimbabwe have been increasing their
investment into property with 44 percent of total asset value in the last
quarter of 2022 in investment property, four percent more than the
recommended 40 percent to reduce concentration risk.

 

 

“As such, we expect more investment to continue to go into investment
property as long as inflationary conditions in the country
persist.”-hronicle

 

 

 

 

Saudi material cost trends: Iron drops 28%, cement rises over 2% in Q2 2023

Image used for illustrative purpose Workers wearing protective face masks
stand on a building under construction in the New Administrative Capital
(NAC), east of Cairo, amid concerns about the spread of the coronavirus
disease (COVID-19), in Egypt May 6, 2020.

 

SAUDI ARABIACOMMODITIESMANUFACTURINGINDUSTRIALCONSTRUCTION

The average price of iron in Saudi Arabia declined by 28 percent to 3,001.79
Saudi riyals per tonne in the second quarter of 2023 from SAR4,169.87 per
tonne in the year-earlier period, according to the country’s General
Authority for Statistics.

 

Iron prices – Q2 2023 v/s Q2 2022

 

 

Average ready-mix concrete prices slipped 1.54 percent year-on-year to
203.85 riyals per cubic metre.

 

Ready-mix concrete prices – Q2 2023 v/s Q2 2022 

 

 

Average timber prices fell 3.4 percent to 3,579.21 riyals per cubic metre in
the three-month period ended June 30, 2023, compared to 3,705.63 riyals per
cubic metre a year earlier.

 

Timber prices – Q2 2023 v/s Q2 2022 

 

 

On the other hand, the average cement price rose 2.3 percent to 14.08 riyals
per 50 kg bag in the second quarter of 2023, compared to 13.79 per 50 kg bag
for the same period last year.

 

Cement prices – Q2 2023 v/s Q2 2022 

 

 

Cabling prices gained 3.51 percent year-on-year to 47.99 riyals per metre.

 

Cabling prices – Q2 2023 v/s Q2 2022

 

 

GCC project awards surged 86 percent in second quarter 2023 to reach $49.7
billion compared to $26.7 billion in awards during second quarter 2022,
underlining the determination of the regional countries to execute and reach
their diversification targets, according to Kuwait-based Kamco Invest. Saudi
Arabia alone accounted over 49.1 percent of the contracts awarded in the GCC
region during the second quarter of this year.

 

 

 

 

Iraq’s Health Ministry to speed up construction of 3 hospitals in Baghdad

Iraq’s Ministry of Health is speeding up the construction of three hospital
projects in capital Baghdad.

 

Abdul-Zahra al-Hindawi, spokesperson for the Ministry of Planning told Zawya
Projects that the Deputy Prime Minister and Minister of Planning, Muhammad
Ali Tamim chaired a meeting that included the Governor of Baghdad, Muhammad
Jaber al-Atta, key officials from Planning and Health ministries, and
contractors to discuss the progress of Al-Fadhiliya, Al-Hurriya and Al-Shaab
hospital projects in Baghdad.

 

He added that the officials also discussed the prices of medical equipment
in global markets, and mechanisms to ensure the timely supply of these
equipment to the hospitals for completing the projects.

 

 

 

 

Iraq’s submerged tunnel to be 2.4km long

A submerged tunnel under construction in Iraq as part of the
multi-billion-dollar Faw Port project will stretch nearly 2.4 kilometres, an
Iraqi official was quoted on Wednesday as saying.

 

The tunnel, dubbed the longest in the Middle East, will link the oil hub of
Basra in South Iraq with the nearby port of Umm Qasr, said Farhan
Al-Fartousi, Director of the General Company for Ports in Iraq, an affiliate
of the Transport Ministry.

 

In a statement carried by Aliqtisad News and other Iraqi publications,
Fartousi said the submerged tunnel would allow for linking Umm Qasr with the
“Development Road” which will connect Faw with the Turkish border in North
Iraq.

 

“This is a major project
the tunnel will be nearly 2.5km long and it will
pass under Khor Zubair canal to link Basra with Umm Qasr
this means the
project will largely contribute to supporting maritime transport from Iraq
to other countries,” he said.

 

Faw Port, scheduled to be completed in 2025, will be one of the world’s
largest container terminals, with a planned capacity of 99 million tonnes
per year. 

 

The Development Road linking the Port with Turkey is expected to cost around
$17 billion, according to the Transport Ministry.

 

 

 

 

 

UAE: Lush greenery, urban farming; townhouse project launched at Expo City

Expo City Dubai launched its latest residential project — Shamsa Townhouses,
a collection of townhouses surrounded by lush greenery and urban farming.

 

This project is a commitment to Expo 2020 Dubai's environmental preservation
and sustainable living. The new development is situated in Expo Valley, an
extension of Expo City.

 

The Shamsa townhouses come in two variants — a 3 and 4-bedroom with an open
kitchen and a feature island, master bathroom, powder room, maid’s room, and
basement parking for 2 vehicles with direct villa access. The price of these
townhouses starts at Dh3.4 million.

 

The Shamsa townhouses are an equitable and sustainable development, being
one of the many projects that will feature villas and townhouses nestled in
a green oasis and within a natural habitat, prioritising its residents'
health, well-being, and happiness.

 

Expo Valley is a gated community within Expo City, combining lush greenery,
a lake and wadi, with the ease of urban living. The residents will enjoy a
harmonious living experience that integrates nature, space and convenience
within easy reach.

 

A wadi will be constructed between the residential units of the
neighbourhood. The 1 kilometre wadi will have various sceneries and terrain,
including a water body and rugged topography, where people can hike within
the neighbourhood. The wadi will generate a microclimate that decreases
temperatures and acts as a natural sound and dust barrier.

 

The project’s construction has already begun, and the developers hope to
complete the first phase by January 2026. Residents will be able to observe
natural animals and see gazelles grazing in the neighbourhood.

 

The neighbourhood will feature car-free lanes and dedicated tracks for
cycles and e-scooters. The entire road network will be underground.
Residents can access the main Expo City attractions through a pedestrian,
cyclist, and autonomous vehicle corridor.

 

The valley is developed and designed with a unique topography known as a
folded earth. When a resident sits on the terrace, he or she may enjoy the
panorama as far as the eyes can see without being obstructed by any
buildings. Its unique topography creates a micro-climate that lowers
temperatures and provides a natural buffer against noise and dust.

 

 

 

 

UAE construction sector records 9.2% growth in Q1

The UAE's construction sector posted a 9.2 per cent growth in the first
quarter (Q1) of 2023, compared to the same period in 2022, to total AED36.3
billion ($9.88 billion), according to data issued by the Federal Center for
Competitiveness and Statistics.

 

The real estate sector recorded a 3.1 per cent growth compared to the same
period in 2022.

 

The UAE's GDP grew to AED418.3 billion ($113.9 billion) in the first quarter
(Q1) of 2023, up 3.8 per cent or more than AED15 billion compared to the
same period last year, the data said.

 

Most sectors and economic activities that serve as the key pillars of the
national economy made significant contributions to the growth.

 

The contribution of the transport and storage sector to the GDP in Q1 2023
amounted to AED21.79 billion, up 10.9 per cent compared to the same period
in 2022.

 

The accommodation and food services activities grew by 7.8 per cent, while
the finance and insurance sector achieved a 7.7 per cent growth. Wholesale
and retail trade achieved 5.4 per cent growth in the first quarter of the
year to exceed AED102.3 billion.

 

Meanwhile, the non-oil GDP totalled AED312 billion, indicating an increase
of more than AED13.5 billion or a 4.5 per cent growth.

 

 

 

 

A successful Big 5 Construction Southern Africa

Minister of South Africa’s National Department of Public Works and
Infrastructure Mr Sihle Zikalala speaks at the Big 5 Construction Southern
Africa three-day workshop.

The 10th edition of Big 5 Construct Southern Africa concluded recently with
events including the Big 5 Southern Africa Construction Impact Awards and
African Smart Cities Summit.

 

The Big 5 Construct event contributes significantly to the economic
recovery, growth, and transformation of Southern Africa’s construction
industry, placing a special focus on accelerating business through
face-to-face engagement.

 

 

The three-day event at Gallagher Convention Centre from June 27-29 united
over 200 exhibitors, 80 speakers, and stakeholders from over 45 countries.

 

Attendees enjoyed access to 6000 plus products and technologies and 30
CPD-accredited workshops, covering an array of themes from transformation to
professional development, smart construction to architecture, real estate,
and more.

 

 

Over 200 exhibitors, 80 speakers, and stakeholders from over 45 countries
attend the Big 5 Construction Southern Africa workshop.

Minister of South Africa’s National Department of Public Works and
Infrastructure Sihle Zikalala was also present as he expressed the
government’s commitment to lead the sector to recovery, reflecting on the
triumphs and challenges, including R1b in blended finance to accelerate
growth and focusing on creating a thriving and more inclusive industry.

 

“This is a sunrise industry, not a sunset industry. Brick by brick, let us
build a better construction sector together,” said Zikalala.

 

He added that improving learning opportunities to enter the industry,
technical know-how, and particularly, supporting women-owned construction
firms are among the key deliverables to improve the sector, along with
promoting resilient infrastructure methods.

 

South Africa’s Construction Industry Development Board CEO, Bongani Dladla
said that while SA does not have all the money to close the funding gap in
the construction sector, “we must still do all we can to move projects to
shovel-ready status while paving the way for an industry that adequately
reflects the country’s demographics.”

 

Dr Msizi Myeza, CEO of the Council for the Built Environment, South Africa
agreed that SA could improve on the good work being done towards a
transformed industry.

 

This includes encouraging youth to consider a construction career and
creating real opportunities for growth.

 

Deputy CEO of Business Unity South Africa Khulekani Mathe reiterated how
crucial it is to improve the status quo on unemployment in the country,
where the construction industry could provide many jobs and contribute to
GDP growth.

 

Furthermore, the winners of the Big 5 Southern Africa Construction Impact
Awards were celebrated while the African Smart Cities Summit delegates
delved into how these innovative urban spaces can enhance the quality of
life.

 

Portfolio director for Built Environment Tracy-Lee Behr said integrating
sustainable solutions into industry best practice is the way forward.

 

“These events serve as a platform for exchanging knowledge, fostering
collaboration, and promoting inclusivity and sustainability across
construction and infrastructure.

 

“It will take time and ongoing commitment to see further positive progress
but as the saying goes; if you want to go fast, go alone. If you want to go
far, go together,” concluded Behr.

 

 

 

 

Africa backs $514bn in new city projects to solve urbanisation challenges

Private developers and governments across Africa are backing over two
billion square metres of land reclamation and new city projects, costing
over $514bn, to cater to the region’s growing urban centres according to
Estate Intel’s Africa’s New Cities 2023 Factsheet. 

 

According to Estate Intel, North Africa has emerged as the leading region
accounting for 88% of planned new city developments across Africa, followed
by West Africa at 5.5% and East Africa at 3%. This distribution has been
attributed to increased government commitments to ensure quality living and
infrastructure in the face of rising urban populations.

 

Notably, in terms of the top five countries in new city developments, Egypt
emerged as the leading country accounting for 33%, this was followed by
Nigeria (17.9%), Mauritius (8.9%), Ghana (7.1%) and Kenya (5.4%).

 

Dapo Runsewe, Senior Analyst at Estate Intel noted that the development of
these new cities is due to rapid urbanisation causing overcrowded cities,
straining infrastructure and available resources without adequate affordable
housing options amid rising poverty levels. As such, these cities provide an
opportunity for developers and the government to create more liveable and
connected cities with better infrastructure.

 

Overall, the demand for planned cities is high across the continent, with at
least one conceptual city being introduced in 10 African countries, the
Estate Intel fact sheet indicated. For instance, cities such as New
Administrative Capital in Egypt, Konza City in Kenya and Diamniadio City in
Senegal are expected to present a new face of African cities that is more
sustainable, smart and efficient.

 

Notably, these cities are almost equally funded in the distribution between
the government and the private sector with government funding accounting for
approximately 48% of the funding while the private sector funding accounted
for 46%.

 

The report highlights 14 new cities across the continent. 

 

Egypt’s New Administrative Capital: That is being developed by the Egyptian
government. It is located 45 km east of Cairo. The New Administrative
Capital aims to ease the current pressure of overpopulation and urban
congestion in Cairo. It consists of residential districts, government
administrative districts, parks, and a central business district. 

 

Kenya’s Konza Technology City: Initiated by the government of Kenya in 2008
and is designed to be a technology hub and the flagship project of Kenya’s
2030 vision. 

 

This mixed-use development currently sits on a 20 million square metres site
and aims to be a pioneer smart city in Africa. 

 

Ghana’s Appolonia City: Located in the greater metropolitan area of Accra.
It is a mixed-use development project by Rendeavour. Upon completion,
Appolonia City is expected to accommodate 88,000 residents and 20,000 daily
visitors. The first phase of the project has already started and the entire
project is expected to be completed over the next 10 years. 

 

Nigeria’s Eko Atlantic City: Located in Lagos. It is being built on
reclaimed land from the Atlantic Ocean. Eko Atlantic City is intended to be
a new, modern city that will help alleviate the housing and infrastructure
problems in Lagos. Construction started in 2007 and to date over 6,500,000
square metres of land have been reclaimed. 

 

Kenya’s Tatu City: A planned city on the outskirts of Nairobi. It is a
mixed-use development that includes residential, commercial and industrial
areas. It is one of the flagship projects of Kenya’s 2030 vision.

 

Zambia’s Nkwashi City: It features a wide range of housing options including
apartments, townhouses, and detached homes, as well as commercial spaces. It
aims to provide high-quality, sustainable, and affordable housing for
middle-income earners in Zambia. 

 

Egypt’s Al Galala City: That is considered the second largest project in
Egypt, after the New Suez Canal Project. Al Galala City is located 170 km
from Cairo, on the highest mount plateau in the Red Sea area at 770 metres
above sea level at its highest elevation. It will be a fully integrated city
with residential, commercial, industrial and hospitality components. 

 

Senegal’s Diamniadio Lake City: That is being developed by the Senegalese
government in partnership with Semer Group. It aims to create a modern,
sustainable, and livable city that will serve as a catalyst for economic
growth. Construction is underway and is due to be completed by 2035.

 

Nigeria’s Centenary City: A modern city built to commemorate the 100th
anniversary of Nigeria. Launched in 2014, the city when completed will
feature residential, commercial, and industrial areas. 

 

Egypt’s Madinaty City: A modern sustainable city with a high standard of
living. It is located on the outskirts of Cairo and is developed by Talaat
Moustafa Group, one of Egypt’s largest real estate development companies. 

 

Mauritius Moka Smart City: This aims to create a sustainable and
technologically advanced city to serve as a model for urban development in
the region. Moka Smart City will feature a range of residential, commercial
and recreational facilities, as well as a business park.

 

Nigeria’s Alaro City: Located in the North West Quadrant of the Lekki Free
Zone. It is an integrated mixed-use city site over 4,900 acres. 

 

DR Congo’s La Cite Du Fleuve (The River City): Is being built on reclaimed
land from the Congo River. It was first proposed in the early 2000s to
alleviate overcrowding in the capital city of Kinshasa. It is planned to
have a population of 7 million people. Construction in La Cite Du Fleuve
started in 2009, and to date, several residential developments are already
completed and in use. 

 

Mauritius Beau Plan Smart City: A planned development located in the North
of Mauritius. It is a mixed-use development that includes residential,
commercial and educational areas. The first phase commenced in 2016.

 

“New city developments in Africa hold great promise for promoting economic
growth, improving living standards, and addressing the continent’s
urbanisation challenges,” Dapo noted  

 

“Overall, the successful development of new cities in Africa will require a
collaborative and coordinated effort among governments, private sector
actors, civil society organisations, and local communities. With the right
policies and frameworks in place, new city developments in Africa have the
potential to be a key driver of economic growth, social development, and
environmental sustainability for the region in the years to come,” he
concluded.

 

 

 

 

Chinese Tire Manufacturer Sentury To Begin Construction of First Morocco
Factory

Rabat - Chinese tire manufacturing Company Sentury Tire has secured land in
Morocco to build its first car tire factory in the northern Moroccan city of
Tangier this month, Chinese media group Yicai Global reported on Wednesday.

 

Sentury Tire’s General Manager Lin Wenlong finalized an agreement with the
Managing Director of Tangier Med Zones Jaafar Mrhardy for the purchase of
around 200,000 square meters of land. 

 

The report noted that the plant will be built close to “Africa’s largest
container port,” providing strategic access to international markets.

 

With an investment of nearly $300 million (MAD 2.9 billion) in self-raised
funds, Sentury Tire aims to establish an automobile tire manufacturing plant
with an annual production capacity of six million units by the end of the
second year. 

 

The move comes as Sentury Tire continues to strengthen its global presence,
following the successful establishment of two other facilities in Thailand
and Spain.

 

The location of the new facility, situated just 35 kilometers away from the
Port of Tanger-Med, offers a significant advantage in handling international
exports. Tangier-Med port currently manages over half of all cargo passing
through Moroccan ports, enhancing the company’s logistical efficiency.

 

Read also: Morocco, China Resume Talks about Tangier Tech City Project in
High-Level Meeting

 

Upon completion, Sentury Tire will become the sole tire manufacturer in
Morocco, consolidating its competitiveness on the global stage. 

 

In January, the company unveiled its plans to invest $297 million in
building the new factory in Morocco, attributing its choice to the country’s
stable economy and political environment, investment conditions, and
favorable trading policies.

 

In addition, Sentury Tire highlighted Morocco’s geographical location,
allowing for distribution to Europe. It particularly recognized the
country’s strong and easy access to European and American markets.

 

Construction of the new facility is expected to take around 18 months, with
the factory beginning operations by the end of 2024 or early 2025.

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2023

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

Heroes’ Day

 

Aug 14

 


 

Defence Forces Day

 

Aug 15

 


zIMBABWE

 

2023 harmonised elections

August 23

 


Companies under Cautionary

 

 

 


 

 

 

 


CBZH

GetBucks

EcoCash

 


Padenga

Econet

RTG

 


Fidelity

TSL

FMHL

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from s believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and d from third parties.

 


 

 


(c) 2023 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> bulls at bullszimbabwe.com Tel: +263 4 2927658 Cell:
+263 77 344 1674

 


 

 

 

 

 

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