countries. The needs and priorities of individual countries are bound to differ. None the less, the development of the construction sector requires the formulation of concrete policies and strategies, their implementation through practical programmes and actions, and the establishment of institutional and administrative structures designed to facilitate the implementation process.
71. In that connection, the two main aspects of the construction sector - building materials production and construction-related services - should be reorganized and developed, each in keeping with the specific imperatives pertaining to it. Construction sector development strategies and actions should embody those two aspects, individually and collectively. Further, national and international agencies should be cognizant of their respective roles.
72. In the formulation of construction sector development strategies and policies, due priority should be given to the need for support mechanisms such as institutional structures and manpower training. Such policies and strategies should be thoroughgoing, with a clear definition of various roles at all levels.
1. Organization at the national level
73. In most African countries, construction sector development activities are spread out among different departments or agencies. This results in developmental imbalances and wastage of resources. The current situation calls for thorough coordinated research to determine the likely economy-wide future demand patterns in the long term, a plan of action for construction sector development, clear definition of roles for various agencies, and a policy implementation framework with adequate management, coordination and support mechanisms.
74. To facilitate the organizational structure at the national level, a central office of coordination and support should be established. Its functions would include construction sector development programme planning on the basis of the requirements of end-users in various sectors, managing the importation of building materials and equipment, tackling problem areas and ensuring the smooth implementation of projects. National public agencies responsible for the construction sector should be strengthened and their roles clearly defined to enable them to contribute to the development of the sector. At present, these agencies are, in most cases, charged with administering procurement contracts and supervising their execution, and drawing up periodical building materials price indexes.
2. Organization at the subregional level
75. A coordination mechanism along the lines described above but structured at the regional or intergovernmental level can also facilitate the development of the construction industry. One possible strategy is to establish development coordination committees for the construction and building-materials sectors, within the framework of regional economic groupings such as ECOWAS, CEEAC, SADCC, AMU, etc. The work of such coordination committees can be facilitated through liaison mechanisms between country-level central agencies of the type described above.
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3. Organization at the regional level
76. Sectoral development strategies at the national and subregional levels should, of course, be supplemented by regional programmes - through liaison mechanisms and cooperation agreements between African countries inter se as well as with non-regional partners and international institutions. Regional programmes could include technology promotion projects, dissemination of research results, feasibility studies, consultancy services, training programmes, and the promotion of pilot projects and demonstration
units.
4. The need for integrated planning
77. A central construction-sector service or private-sector actors, should formulate forecasts of future demand in the construction sector in the long term. Broken down into distinct areas, such as building materials, construction-related services, financing, manpower, management services, etc., the demand forecast can serve as a focal point for sectoral and sub-sectoral linkages and functions, thus providing a sound management framework. It can also be the basis for a national construction-sector development programme in which objectives in the short, medium or long-term, as well as the expected roles of public-sector and non-public-public-sector entities can be set out.
5. Revision of building codes and regulations
78. One major drawback to the development of the construction and building materials sectors is the fact that most of the building codes and regulations currently in force in most African countries are ill-suited to local needs. Most of these codes and regulations are modelled on legislation in developed countries.
The modifications that have thus far been instituted in some countries do not go very far. The tests and specifications applied are often those set under AFNOR (French), BS (British), DIN (German) and ASTM (American) standards, depending on the source of funds and the nationality of the firm undertaking the project. Rarely is due attention given to the specific conditions obtaining in the country where the project is being carried out. From the standpoints of both production and marketability of these products between African countries, the introduction of new building legislation is essential to the development of the sector.
6. Research and development
79. Research is an important element of development, and the construction and building materials industry is no exception. At present, however, Africa has few research institutions able to meet most of the developmental and technological requirements of the industry. For the research function to make a just contribution, it must itself be given due priority in national development plans, and operate within a framework of clear-cut goals. Research programmes should emphasize standardization and the acquisition of technical know-how through pilot projects. As the construction and building materials industry is still in many ways a fledgling sector without substantial funds, it should be able to have recourse to specialized research units which can provide the necessary logistical support. Such research centres can also contribute significantly to the technical and professional training requirements of the industry.
7. Construction-related services
80. The availability of certain vital sen/ices which entrepreneurs in the construction sector cannot afford to integrate into their own operational structures, has a significant impact on efficiency. The majority of construction projects in this region being small-scale and fairly dispersed, there is a need for various technical support services. The concentration of manufacturing plants, and the rational location of repair and maintenance services and building materials depots, should also be promoted within the framework of sectoral development strategies. Governments, financial institutions and construction-industry organizations can make a significant contribution to the development of new methods that would benefit entrepreneurs.
81. Major projects like dam construction, which are normally labour-intensive, require experts for on-site evaluation, supervision and overall management. Most entrepreneurs apparently lack sufficient funds to
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engage experts on a permanent basis. It would be to the advantage of the industry if governments undertook to either provide such services directly, or help procure them for the industry. Some countries such as Kenya, Swaziland and Togo have already taken steps in this direction. However, much remains to be done.
In those countries where such services do not as yet exist, we recommend that they be set up.
82. The industry is also in dire need of improved equipment-leasing services. Enterprises offering various kinds of equipment and machinery on lease would help alleviate the costs many construction companies based in Africa incur on construction machinery (including soaring maintenance costs) as well as problems connected with the wide variety of machines used in construction works, the scarcity of personnel qualified enough to operate or maintain those machines, and the under-utilization of installed capacity. Such leasing arrangements would be more economical and efficacious than actual acquisition of the equipment. However, this business is not yet widespread in Africa, and where it exists, the cost is often beyond the reach of many entrepreneurs. Consequently, governments should endeavour to promote the establishment of companies to lease equipment to entrepreneurs at cheap rates.
83. A closely related problem to the one mentioned in the preceding paragraph is the lack of equipment repair workshops. This problem, which affects most African countries, has led to a situation where much of the equipment becomes useless after some time. Most of the construction companies are either too small to have their own maintenance sheds or do not possess a sufficiently large quantity of machinery to justify such an investment. In such circumstances, governments should make efforts to provide maintenance sheds at central sites for use by construction companies.
84. Finally, it is necessary to address the need for easily accessible building materials depots to streamline their distribution to various end-users. Often, these depots are located too far from end-users;
this problem is compounded by the fact that the building materials stock is not always suited to immediate needs, and by transportation and distribution problems. Governments should therefore endeavour to facilitate the establishment of distribution centres at suitable sites to promote efficiency in the industry.
8. Buildmg materials
85. The main objective of any building materials development strategy should be to ensure the availability of quality building materials at affordable prices. This would enable the construction sector to fulfil its just role in meeting society's shelter requirements. In a nutshell, such a development strategy should principally address the following imperatives:
(a) Promote local building materials production. Reliance on imported building materials should be reduced, especially as regards those building materials for which local substitutes can be developed or in respect of which there is a comparative advantage in local production. Raw material reserves that are viable in terms of available quantities should be utilized as much as possible for the benefit of the local industry;
(b) Decentralize production. Decentralization of building materials production should follow regional capacities. Decentralization has a number of advantages: reduction of transportation costs, promotion of technologies that are low on capital intensity (which favours low-income and-users), and enhanced community involvement;
(c) Give more priority to the building materials sector in development strategies. The building materials sector,which undeniably has a significant impact in the short-term on market patterns in the construction sector, should be given due priority in the development agenda. It is a sector which is intimately linked with the needs of the low-income segments of society. Sub-sectors such as burnt brick, roofing tiles (produced industrially and, on a smaller-scale by artisans), techniques for building on reclaimed land, timber, and chalk are an important aspect of the short-term development perspective. In the long term, local production of cement and clinker should be encouraged, subject to the necessary technical and economic viability criteria.
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(d) Rehabilitate existing production units. As against the establishment of a new production unit, we believe that the rehabilitation of one already in existence should be given preference.
86. The following elements may be considered as essential to any strategy for the attainment of the
objectives outlined above:
(a) Development of local raw materials and energy resources;
(b) Local building materials production;
(c) Research programmes and dissemination of research results;
(d) Local capacity building for equipment manufacturing industries;
(e) Provision of access to credit facilities for the building materials industry;
(f) Review of building codes and regulations;
(g) Promotion of the building materials sector;
(h) Human resources development; and (i) Institutional arrangements.
9. Financing
87. Construction projects require the purchase of machinery and equipment; they involve expense in wages and salaries and various other services; moreover, regulations concerning the submission of tenders itself imposes certain financial obligations. Consequently, the entrepreneur often must have access to some form of starting financing. In most African countries, contractors are paid as the work proceeds, so it is up to the entrepreneur to secure the starting capital. Even if the client allows him an advance to enable him to commence the project, the entrepreneur still needs funds to cover the period between the commencement and the completion of the project. Evidently, only large companies or well-heeled entrepreneurs can overcome such financial constraints without difficulty.
88. Of course, contractors have to contend with financial difficulties connected with trade usages such as phased payment schedules and preliminary levies, the latter being a sort of guarantee against defective workmanship. In some countries, entrepreneurs are required to deposit a certain percentage of the estimated value-added element of the project when applying for the contract. In most cases, they do not receive the necessary financial support. For example, building materials merchants rarely extend credit to entrepreneurs, and when they do, they usually stipulate a very short repayment period. Most African countries lack financial institutions set up specifically to assist the construction sector. Commercial banks are often reluctant to assist entrepreneurs in the construction sector without collateral; when they do extend credit, it is often at very high interest rates and with very short repayment periods stipulated.
89. Governments should seek ways of establishing better financing mechanisms for the construction sector. The establishment of national building banks, the creation of revolving funds to which entrepreneurs would contribute and the reduction of deposits and other preliminary levies are some possible courses of action in that direction.
90. Another possible approach is through regional cooperation. Here, African governments could pool their resources towards the establishment of a financial institution that would be at the service of a number of countries. Shelter Afrique and African Habitat Fund are examples of institutions which fit that model.
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X. CONCLUSION
91. What emerges from the foregoing analysis is that the development of the construction and building materials sectors in Africa requires certain far-reaching steps and initiatives at various levels. The essential impetus, however, must come from national agencies. African countries need to give more attention to the construction sector in their development strategies. They should formulate innovative policies and institute appropriate measures to enable the construction sector to meet the infrastructure needs of the economy as a whole. Policy frameworks must, however be supplemented with institutional support measures to boost the sector. Areas requiring urgent attention include financing mechanisms, research programmes on building materials and systems, and capacity building to ensure the availability of skilled manpower.
92. At the national and subregional levels, we recommend the establishment of mechanisms designed to catalyse the growth of the construction sector. Such mechanisms would be charged with assisting governments in the formulation of development programmes for various sub-sectors within the construction sector, with due attention being given to the Overall needs of the sector; they would also be responsible for ensuring the proper completion of selected projects.
93. A development strategy for the construction sector is therefore needed, and it should cover areas such as policy frameworks, raw materials processing and supply, building materials production and supply, construction - related services management and manpower development, as well as technology and transport-infrastructure development.