Upcoming Mega Projects Africa

January 2019

SOUTH AFRICA

Project: Jewel City Redevelopment Project
Value: USD 44,000,000,000
Client: City of Johannesburg
Website: www.joburg.org.za

The revitalized Jewel City will reopen to the public as a vibrant mixed-use precinct. The project includes development of six city blocks, five of which have existing commercial buildings on them and construction of a new residential building, of around 1,000 residential units, 20,000 sqm commercial space, 4,800 sqm retail space, 750 parking bays and pedestrianized Streets, to create a safe, green, energetic environment.

In addition to the 1,000 residential units, there will be an additional 1,800 DiverCity-owned units outside of the precinct, within a two kilometer walking distance. This will lead to over 4,500 people staying in and around Jewel City.

The project is anticipated to create an estimated 1279 temporary jobs and 1384 permanent jobs, contributing to the municipal and national tax base. Reconstruction will start at the end of January 2019, with the first units available for rent by October 2019, and final completion of the precinct is expected by mid-2020.

SAUDI ARABIA / EGYPT

Project: Saudi-Egypt Electricity Interconnection Project
Value: USD 2,500,000,000
Client: Egyptian Electricity Transmission Company (EETC)
Website: www.eetc.net.eg

Egypt and Saudi Arabia agreed to complete the procedures to implement the electricity interconnection project between the two countries by March 2019 to exchange 3,000 MW.

The total cost of the project was $1.6 billion, but after adjusting the routes and the increase in equipment prices, the cost increased to $2.5 billion. Additional costs in terms of lines, cables, and transformer substations in Saudi territories will be borne by the Saudi side. The same applies to Egypt, both in terms of signed contracts or current negotiations. Egypt will receive funding from the Kuwait Fund for Arab Economic Development; the Arab Fund for Economic and Social Development; the Islamic Development Bank, and the self-resources of the EETC.

The drilling and preparations works have variable costs according to the differing locations. The Saudi change in routes will lead to amending the tenders for establishing the substations and lines, to which three international companies have applied.

ZAMBIA

Project: Jiangxi Multi Facility Economic Zone
Value: USD 300,000,000
Client: Jiangxi United Industrial Development Limited

A consortium of Chinese firms will construct a Multi-Facility Economic Zone in central Zambia’s Chibombo district. The project will go a long way in helping the country in its endeavor to ensure value addition to local products.

It will cover 600 hectares of land, with an initial investment of $300 million. It is anticipated that the first phase will create more than 5,000 jobs. The project by a consortium of Chines companies - the Jiangxi United Industrial Development Limited, marked another symbol of the strong relationship between Zambia and China which dates to pre-independence period. 

MOZAMBIQUE

Project: 40MW Solar Power Plant
Value: USD 50,000,000
Client: Ministry Of Mineral Resources and Energy (MIREME)
Website: www.mireme.gov.mz

The Mozambican government and French solar company, Neoen, have formalised a concession agreement for the construction of a solar power plant at the cost of $50 million.

The 40MW plant is to deliver power to the national grid and produce energy for some 175,000 households that will be built in the administrative post of Metoro, district of Ancuabe in the country’s northern province of Cabo Delgado.

ALGERIA

Project: Phosphate Plant in Region of Tebessa
Value: USD 6,000,000,000
Client: SONATRACH
Website: www.sonatrach.com

The plant will come online in 2022, and it will create 3,000 jobs. Sonatrach will hold 51 percent of the project - which will cost $6 billion to build - and Chinese state-owned conglomerate CITIC 49 percent. The project, in the region of Tebessa, 700 km (430 miles) east of the capital Algiers, will generate $1.9 billion per year. Algeria is trying to diversify its economy away from energy which represents 95 percent of its external revenues.

Algeria, which has the third largest phosphate reserves in the world, is looking to increase phosphate production from 2 million tonnes per year to 15 million tonnes per year by 2020 and to 30 million tonnes by 2030. That would make it one of the world’s top phosphate and fertiliser exporters.

MOROCCO

Project: Undersea Electricity Cable Connecting Between Morocco and Portugal
Value: USD 800,000,000
Client: Ministry Of Energy, Mines and Sustainable Development
Website: www.mem.gov.ma

The project is set on 10.5 million metre square owned by the company, to be developed over 7 phases within 5 years at total investments of 13 billion pounds and expected revenues of 18 billion pounds.

The first phase of the new industrial city will be launched entitled Masnaay by the beginning of the year including 185 factories with various areas for small and medium industries.

Oriental Weavers, the world’s largest producer of synthetic carpets, is set to deliver the fully equipped factories with licenses on a turnkey basis. However, for heavy industries, the factory owners themselves would be required to obtain the necessary licenses.

EGYPT
Project: New Industrial City in Ain Sokhna
Value: USD 723,000,000
Client: Orientals For Urban Development (OUD)
Website: www.ww.oud-egypt.com

The project is set on 10.5 million metre square owned by the company, to be developed over 7 phases within 5 years at total investments of 13 billion pounds and expected revenues of 18 billion pounds.

The first phase of the new industrial city will be launched entitled Masnaay by the beginning of the year including 185 factories with various areas for small and medium industries.

Oriental Weavers, the world’s largest producer of synthetic carpets, is set to deliver the fully equipped factories with licenses on a turnkey basis. However, for heavy industries, the factory owners themselves would be required to obtain the necessary licenses.