This commentary is part of the Africa’s Fourth Industrial Revolution blog series. Read the related book on Africa’s 4IR here.
Home to the world’s first ever 3D-printed school, Africa is a hotspot for digital transformation in the construction industry. For example, 14Trees, an Africa-founded joint venture between Holcim and British International Investment, is revolutionizing the construction industry through 3D printing technology. The company printed the walls to build new schools in Malawi and Madagascar in 18 hours and continues to scale into more construction markets, including building a 52-house complex in Kenya. It is estimated that using conventional methods, it would take 70 years to build the number of classrooms UNICEF estimates are needed to meet the current classroom shortage in Malawi, but 14Trees says that with its technology, that gap could be bridged in just 10 years.
As I describe in my book, Africa’s Fourth Industrial Revolution, such African-led innovation is the result of unique dynamics on the continent that make Africa a potential leader in the construction industry. Advanced technologies are radically changing the construction industry landscape on the continent, which is particularly timely given that 1,000 large building construction projects worth $812 billion are scheduled or ongoing as of 2024. These major undertakings include housing, business parks, data centers, healthcare infrastructure, and ICT projects.
Growth in African infrastructure demand
The African infrastructure and construction sector is rapidly expanding to meet the demands of a growing population, which is expected to reach 2.4 billion by 2050. In addition, Africa is rapidly urbanizing, with African cities growing by more than 160 million inhabitants between 2015 and 2023 and urbanization rates expected to reach 60% by 2050. This rising demand brings challenges: According to the African Development Bank, the financing gap for infrastructure development requires a mobilization of $100 billion per year.
Digitization of the construction industry
Advanced technologies are changing the way new infrastructure and construction projects are implemented, boosting productivity and reducing costs. Between 2020 and 2022, investors poured $50 billion into the global construction technology market, signaling increasing trust in advanced technologies to deliver solutions across the industry.
Augmented reality helps with urban planning, while 3D printing, AI, and blockchain help streamline construction contracting and overall building design. IoT and sensor technologies track energy usage and make it possible to build energy-efficient buildings, and IoT and AI together can help improve economies through long-term cost savings, improve health through better air quality and lighting, reduce environmental impacts by lowering energy consumption, and improve urban development through more efficient land use.
As an example, Botswana has integrated the use of drones, 3D printing, and green technologies to make water, energy, and resource infrastructure more efficient, primarily in private sector-funded smaller projects that tend to be more labor-intensive.
Green building technologies
Africa’s construction industry has the potential to act as a powerful example of the green building revolution, particularly since 70% of Africa’s 2040 building stock has yet to be built. Widespread pressure is currently being put on the industry to reduce both waste and carbon emissions, given that the global construction industry is responsible for 40-50% of global emissions.
Africa can chart its own path within green construction by integrating new green techniques into its construction industry from the beginning, rather than following the path of the Global North. By leveraging its large youth population and the natural resource endowments that span the continent, Africa can use cutting-edge technologies to green the building sector. 3D printing, for example, has been found to reduce the carbon footprint of building a house in Africa by 48% and to reduce construction time by 70%.
South Africa’s construction market, valued at $25.5 billion as of 2024, is an example of a lucrative target for green building technologies. According to the International Trade Administration, South Africa already has a higher growth rate of green buildings compared to other regions such as Europe, the United States, Australia, Singapore, and Brazil.
Strategies and looking ahead
The construction industry has historically been slow to adapt to new technologies, but Africa’s growing demand will require accelerated adoption. This means African countries should commit to long-term strategies to integrate Fourth Industrial Revolution (4IR) technologies, systematically assess which technologies best suit their specific national context, and maximize technology transfer opportunities.
First, African governments need to focus on creating and committing to long-term strategies to leverage 4IR technologies within the infrastructure and construction industries, rather than relying on electoral politics to spur change. 19 African countries have held or are expected to hold presidential or general elections in 2024, two-thirds of which are scheduled for the last quarter of the year. National elections have typically led to an increase in government spending on infrastructure projects, which can drive up demand for construction.1 While investment is critical, elections are also a good time for leaders and civil society to frame the conversation beyond just infrastructure building and to focus more on policies for modernizing, digitalizing, and greening infrastructure and construction. Given the long-term nature of infrastructure projects, they require a commitment that lasts beyond an election cycle and is embedded within a country’s long-term strategy.
Second, as part of such long-term commitments, African countries should systematically explore and assess which technologies best fit within their specific construction industries. Each country’s unique position, from its endowments in natural resources to its tech hubs, will imply different strategies for tapping into the most effective 4IR green technologies.
For example, certain African countries might find it most advantageous to invest in localizing materials for 3D printing through financial incentives and policies aimed at supporting local manufacturing. The development of geomaterials and local bio-based or recycled materials that can be used for 3D printing can significantly decrease costs, which is often cited as one of the main challenges to expanding 3D printing within the African construction industry. Technologies that produce local materials for 3D printing such as green cement now represent an important market in Africa as countries seek to reduce their dependence on imports from firms in Europe and North America. Replacing conventional cement with new materials such as geopolymers further reduces greenhouse gas emissions from 3D printing houses by up to 80%.
Third, as Africa continues to partner with other regions, African countries must strategize to maximize technology transfer opportunities. For example, African countries partner extensively with developed economies such as the United States and China, which use advanced construction technology. Expertise from such economies could be better leveraged by African countries through technology spillovers and university-industry linkage structures.
Good governance, investment protection laws, and effective regulatory systems will also be key for African governments to find niches within the 4IR that can serve as entry points for domestic and international companies within the construction industry. With a strategic, long-term vision for a green, 4IR-driven construction industry, African countries can bridge critical gaps in infrastructure. From homes and schools to roads and bridges, Africa is poised to move the continent toward becoming a global leader in the implementation of high-impact construction technologies.
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Footnotes
- For example, the South African National Roads Agency SOC Limited announced its intention to award approximately $350 million worth in tenders in 2024 and in March 2024, Deputy President of South Africa Paul Mashatile also announced $12.4 billion of spending within the infrastructure construction pipeline.
Commentary
Greening infrastructure in Africa through digital transformation
November 8, 2024