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NEWS: Coastal wetlands are unable to adapt to the rate of sea-level rise and are constrained by infrastructure

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Wetlands, precious ecosystems that shield coastlines, safeguard drinking water from saltwater contamination, and nourish diverse wildlife, face a dire threat from the accelerating pace of sea-level rise, driven by global warming. Wetlands have historically adapted to rising sea levels by expanding upward and inland. However, predictions indicate that the waterline will soon shift far too rapidly for wetlands to keep pace. Consequently, future decades may witness the tragic loss of these vital wetland ecosystems. Wetlands along coastlines have historically played valuable roles for people and wildlife, but are now facing the threat of sea-level rise. As temperatures rise, sea levels are rising at an accelerating rate, and wetlands are unable to keep pace by building upward and migrating inland. This is due to human-induced climate change and the burning of fossil fuels, which has warmed the oceans and melted glaciers. Sea levels are now rising at about 10 millimeters per year, and are
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NEWS: The power of infrastructure spend – lessons from Ethiopia

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Based on Ethiopia’s robust infrastructural projects pipeline, the  country's construction industry is projected to grow further in the medium term, with the forecast to become the fastest growing construction market in Sub Saharan Africa




The power of infrastructure spend –  lessons from Ethiopia


Ethiopia has become the fastest-growing economy in SSA, thanks to government investments in infrastructure projects which have enabled manufacturing and other industries. The country’s rapid growth has been guided by the introduction of the Growth and Transformation Policy (GTP), a framework mainly focused on creating a conducive macroeconomic environment.It has also been supported by close alliances with Chinese firms including financial support from Chinese banks.

Although Ethiopia’s robust GDP growth has averaged 9.9% over the past ten years to 2018, it moderated to 7.5% in 2018,somewhat owing to policy alterations, civil unrests and political instability. Underpinning the high growth figures has been the construction sub-sector which expanded by 16% in 2018 and is also the largest industrial sub-sector in the country accounting for 71.4% of the industries sector.

For the past few years, Ethiopia has sustained its GFCF as a share of GDP spending above 30%,26 making it one of the top economies globally in terms of capital formation spend as a shareof economic activity. Based on the country’s robust infrastructural projects pipeline, the construction industry is projected to grow further in the medium term, with Ethiopia’s forecast to becomethe fastest growing construction market in SSA.Countries with the highest GFCF as % of GDP

It has been noted that reliable infrastructure helps to boost economic activity as it enables production and thus attracts FDI. Ethiopia’s infrastructure investments have been coupled with growth in FDI inflows, up from US$344m in 2007 to US$3.3bn in 2018.29 This makes Ethiopia one of Africa’s top five FDI recipients, with China being the largest investor.

 This article was extracted from the Deloitte Africa Trends Construction Report 2019 to read the full report click here

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