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John-Paul Iwuoha John-Paul Iwuoha is an Influencer

Business Activator. Startup & Growth Specialist for Africa-focused Entrepreneurs

Sand, used for building and construction projects, is the most mined mineral in the world. Every year, up to 50 billion tonnes of sand and gravel is used globally and the annual international trade in sand reached $2.2 billion in 2021, according to the OEC. Interestingly, based on current and projected use rates, estimates suggest the world could be running out of construction sand over the next 40 years (by 2060). There are already telling signs. For example, to supplement local supplies and support its ongoing construction boom, China has become the world’s largest importer of sand, spending $329 million on sand imports alone in 2021. While the USA and Australia are the world’s biggest sand exporters, African countries like Egypt, Mozambique, Tunisia, and South Africa earn over $150 million yearly from selling sand to customers in China, Italy, Turkey, and the UAE, based on international trade data. However, the export market potential for sand pales in comparison to the local opportunities to supply sand for housing and infrastructure projects across Africa. The African Development Bank estimates that Africa needs to spend up to $170 billion annually on new construction projects to close its massive infrastructure deficit. These projects will require millions of tonnes of sand. Worse still, several countries in sub-Saharan Africa are already in a housing crisis with at least 17 countries having housing deficits of more than 1 million units. Nigeria has the highest deficit (17 million), followed by South Africa (2.5 million), and Kenya (2 million), among others. Building these homes will require thousands of truckloads of sand. While the construction boom in Africa is creating a multi-billion-dollar opportunity for local players in the sand value chain, it is important to consider how the scramble for increasingly scarce sand can cause tensions, conflict, and serious environmental degradation, like already happens in countries like Nigeria and South Africa, among others. The demand and supply of construction sand in Africa will surely be an exciting market to watch for opportunities in 2024. If you liked this post, please LIKE, SHARE and FOLLOW. It tells me you want more. ———— Hello, I'm John-Paul Iwuoha. I lead the market intelligence team at Activator HQ that tracks Africa’s Top 100 most interesting business opportunities with a minimum market value of $100 million (each). You can access the full list of opportunities with detailed business plans on the website: ActivatorHQ.com In the last 10 years, I have worked with dozens of Africa-focused entrepreneurs to start and grow promising businesses. If you need strategic guidance and support to develop your business idea, start a new business, or grow/diversify your existing business, visit ActivatorHQ.com to learn more about my work.

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