Cameroon Construction Sector Report 2025: Growth Driven by Infrastructure
The recently published report “Cameroon Construction Market Size, Trends, and Forecasts by Sector – Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H2 2025)” by ResearchAndMarkets.com provides an in-depth assessment of the country’s construction industry. The report highlights both the opportunities and risks shaping the sector’s trajectory through the end of the decade.
According to the findings, Cameroon’s construction industry is forecast to expand by 4.8% in real terms in 2025, reflecting the government’s strong commitment to infrastructure development, as well as rising investment in energy and utilities projects. The sector’s growth is not only supported by government budgetary priorities but also by long-term national development strategies aimed at modernizing the economy, improving connectivity, and increasing access to energy.
Recent Performance of Cameroon’s Construction Industry
The momentum within the industry is already visible. Data from the National Institute of Statistics of Cameroon (NSO) shows that the construction sector delivered impressive results in 2024. In the fourth quarter of the year, the industry’s value-add, measured at 2016 constant prices, rose by 6.9% year on year (YoY). This followed YoY growth of 3.7% in Q3 2024 and 3.9% in Q2 2024, indicating a steady acceleration in activity.
This performance was largely driven by increased public works, investments in road and transport projects, and the expansion of energy networks to meet rising domestic demand. The numbers underline how construction remains one of the most critical engines of economic growth in Cameroon, directly influencing employment, urban development, and overall productivity.
Government Budget Priorities for 2025
A major driver of construction activity in 2025 will be the State Budget, approved in December 2024. The financial bill earmarked an expenditure of CFA7.3 trillion (US$12.2 billion), making it one of the most ambitious budgets in Cameroon’s history.
Of this amount, CFA1.4 trillion (US$2.3 billion) was allocated to infrastructure development alone. This represents a 21.2% increase compared with the 2024 budget allocation, signaling the government’s determination to accelerate infrastructure upgrades. The focus spans multiple subsectors:
- Transport infrastructure: road networks, highways, and urban transit systems to improve regional connectivity.
- Energy and utilities: power generation and transmission projects aimed at addressing supply gaps.
- Social infrastructure: healthcare and educational facilities designed to support long-term human capital development.
- Urban development: housing programs and modern amenities to respond to rapid urbanization.
This large-scale budgetary commitment highlights infrastructure as a cornerstone of Cameroon’s development agenda and confirms its pivotal role in stimulating the construction sector.
Risks and Constraints
Despite the strong growth outlook, the construction industry faces several downside risks in the short term. The most pressing challenge is exposure to foreign exchange fluctuations, given Cameroon’s debt profile.
According to the Autonomous Sinking Fund (CAA), which manages the country’s public debt, 68.5% of Cameroon’s debt was denominated in foreign currencies as of May 2025. This creates significant vulnerability to shifts in global currency markets. Of this, approximately 40% of the debt is effectively exposed to exchange rate fluctuations, meaning that a depreciation of the Central African CFA franc against major currencies could increase the cost of debt servicing and put pressure on government finances.
For the construction industry, which often depends on imported machinery, equipment, and materials, currency volatility can translate into higher project costs and delays. Moreover, global uncertainties, ranging from commodity price fluctuations to geopolitical risks, could indirectly affect the financing and execution of infrastructure projects.
Medium- to Long-Term Growth Prospects
Looking beyond 2025, the report forecasts that Cameroon’s construction industry will record an average annual growth rate (AAGR) of 5.7% in real terms from 2026 to 2029. This positive trajectory is anchored on multiple pillars:
- Public-Private Partnerships (PPPs): The government is increasingly turning to PPP models to finance and implement large-scale infrastructure projects. Such partnerships will be crucial for mobilizing private capital, technical expertise, and innovation in project execution.
- Industrial Development: Investments in industrial parks and manufacturing zones are expected to boost demand for commercial and industrial construction, helping to diversify the economy and reduce reliance on resource exports.
- Transport Infrastructure: Road expansions, bridge construction, and modernization of rail and port facilities are key to improving regional integration and trade competitiveness.
- Energy Infrastructure: Cameroon’s abundant hydroelectric potential and growing renewable energy projects are creating new opportunities for construction firms specializing in energy-related infrastructure.
- SND30 (National Development Strategy 2020–2030): The government’s overarching plan aims to transform Cameroon into an emerging economy by 2035. Under SND30, infrastructure development is prioritized, especially in transport, energy, water supply, and housing. Construction will be a direct beneficiary of this long-term vision.
Sectoral Breakdown of Opportunities
- Residential Construction: With urbanization accelerating, demand for affordable housing is on the rise. Major cities such as Douala and Yaoundé are experiencing population growth, spurring both public housing initiatives and private real estate developments.
- Commercial Construction: Retail, office spaces, and hospitality projects are set to expand, particularly as the country continues to attract foreign investment.
- Industrial Construction: The government’s push for industrialization and agro-processing facilities will fuel demand in this sector.
- Institutional Construction: Schools, hospitals, and public offices form part of ongoing social infrastructure projects.
- Energy and Utilities Construction: With electricity demand projected to grow steadily, investments in power plants, transmission lines, and water treatment facilities will remain central to sector growth.
