We want to bring scale and efficiency to construction and development of Africa, where possible leveraging this capacity across the portfolio.
The construction sector is a major source of employment; not only in on-site construction but also in construction-related professional services, and the supply of materials and components. It is important in stimulating local economic activity, particularly if linked to an improvement in conditions in low income settlements, and in improving access to trade and essential services such as water and electricity.
Commercially, the driving forces of the construction market are government infrastructure spending plans, general economic growth and urbanisation; all three of them point to a thriving market in Ethiopia and Somaliland, resulting in another clear commercial opportunity with a social impact.
Hence in Somaliland, we set up the second batching plant in the country through our Ready-Mix Concrete (RMC) business. Since its creation, RMC has already produced more than 20,000 cubic meters of concrete and this is being used in projects such as the reconstruction of the historical Waheen Market. The construction industry in Somaliland is benefiting from the establishment of RMC in three ways:
In 2024, some of our largest clients played a direct and impactful role in Hargeisa’s development, contributing to projects in road infrastructure, residential housing, and most notably, the reconstruction of Waheen Market. The market, devastated by a $2 billion fire in 2022, was successfully reopened with our support to contractors—a milestone that underscores Pharo RMC’s critical role in restoring a key commercial hub for Somaliland and East Africa.
To date, our investment in Somaliland has reached $6 million in building and operating ventures within the construction sector. Looking ahead, 2025 marks a new chapter with our largest commitment yet: a $20 million investment in the agriculture sector, focused on water harvesting and agricultural development—further strengthening our long-term commitment to Somaliland’s growth.
Other major customers were Pharo Construction in the context of in-house orders, AA Studio Architects for whom we sourced concrete for a variety of commercial buildings, Hargeisa Theatre and Maan Construction which used our concrete for residential properties. The average customer satisfaction score was an impressive 4.64/5. We also had a 100% order success rate, which showcased our operational consistency and delivery reliability. We also had 22 returning clients and a retention rate of 31.4%.