Africa’s construction sector is experiencing a renewed wave of growth, supported by expanding public investment, rising private-sector participation and increased financing from regional and international institutions. This expansion is driven by rapid urbanisation, population growth and the ambitions of emerging markets across the continent to modernise economies and improve competitiveness. The scale of activity creates opportunities for contractors, financiers and international partners while exposing structural challenges that demand more sophisticated planning, governance and risk-management systems.

Expanding Infrastructure and Emerging Markets

Across Africa, established markets including Egypt, Morocco, Kenya, Ghana, Côte d’Ivoire, Senegal, Rwanda and South Africa continue to attract regional and international contractors, underpinned by strong regulatory systems and consistent project pipelines. Other emerging markets are leveraging development bank financing and public–private partnerships to expand infrastructure capacity. As project volumes rise, the sector is shifting from ad-hoc execution to structured delivery models emphasizing robust feasibility studies, clearer risk allocation and stronger coordination among stakeholders.

The Role of ICC Arbitration in an Evolving Disputes Landscape

As construction projects expand rapidly across Africa, disputes have grown proportionately, often driven by contract administration challenges, scope changes, financing pressures and planning weaknesses. In 2024, construction and engineering accounted for over 23% of ICC’s new arbitration cases, and a quarter of the total number of ICC cases involving African parties also originated from the sector, underscoring ICC’s pivotal role in Africa’s infrastructure landscape.

The 2025 Queen Mary University of London International Arbitration Survey ranked the ICC International Court of Arbitration as the most preferred arbitral institution worldwide, with the ICC Arbitration Rules recognized as the world’s preferred arbitration rules. This recognition underscores ICC’s reputation for structured procedures, predictability, enforceability and unrivalled expertise.

Beyond arbitration, ICC’s Dispute Board Rules offer a proactive path to early resolution, supported by mediation and other ADR tools for faster, cost-efficient outcomes.

Insights from the ICC–FIDIC Conference

At the 2025 ICC–FIDIC Conference on International Construction Contracts and Dispute Resolution, the “Focus on Africa” session highlighted practical realities shaping project performance. Panellists discussed recurrent causes of disputes, including incomplete designs, site-access delays, payment disruptions, currency shocks and scope variations often linked to feasibility or land‑administration constraints. The session underscored the importance of community engagement in regions with complex land‑tenure systems and examined the growing relevance of adjudication bonds in strengthening payment security. Kenya’s progress toward statutory adjudication was presented as a notable reform to improve cash‑flow reliability. The session also noted FIDIC’s standard approach of recommending arbitration under ICC Rules as the final step in its multi-tier dispute resolution process, reflecting the alignment between both organisations in promoting predictable and internationally recognized standards for managing disputes.

Modernizing Dispute Resolution Across Africa

Construction stakeholders increasingly rely on multi‑tier clauses requiring disputes to progress through negotiation, mediation, dispute boards or adjudication before arbitration to maintain project continuity. Recent reforms reinforce this trend. Nigeria’s Arbitration and Mediation Act 2023 modernises enforcement and clarifies court–arbitration interactions, while Kenya’s Construction Payments Adjudication Bill 2025 proposes a fast‑track regime for payment disputes. Egypt and Morocco continue strengthening arbitration frameworks and court support for enforcement, reflecting mature markets. Rwanda and Mauritius have also implemented arbitration‑enhancing reforms to increase efficiency and attract regional disputes. Collectively, these developments signal Africa’s movement toward predictable, efficient and commercially responsive mechanisms for managing construction claims.

Development Finance Institutions: Setting New Standards

Development finance institutions (DFIs) such as the World Bank and African Development Bank shape construction governance across Africa. Their financing instruments impose rigorous environmental, social, procurement and community‑engagement standards that often exceed domestic requirements, resulting in stronger documentation, transparent procurement and clearer grievance‑redress mechanisms helping mitigate disputes and improve outcomes. Recent scrutiny surrounding World Bank–supported housing developments in Ghana underscores the growing focus on governance and accountability in development‑funded infrastructure.

Lessons from Recent Arbitration Cases

Notable cases such as Zhongshan Fucheng v Nigeria (2021), Frazer Solar v Lesotho (2020) and the Webcor/Gabon proceedings (2021; 2024) illustrate risks associated with construction activity, including payment failures, political intervention, contract termination and corruption allegations. These matters highlight the need for strong due diligence, well‑drafted contracts and clear risk‑allocation frameworks, while underscoring the value of trusted international arbitral mechanisms with broad enforceability.

Looking Ahead: Building for Sustainable Growth

Africa’s construction boom offers a unique opportunity to accelerate long‑term economic transformation. Sustaining this momentum will require stronger feasibility planning, modernized procurement systems and deeper community engagement. Equally important is developing robust legal and institutional frameworks aligned with global standards and best practices, supported by payment security tools, balanced risk allocation and clear dispute resolution pathways. With these foundations in place, the continent will be well positioned to turn its infrastructure ambitions into durable, resilient and inclusive development outcomes.