Written by: Badr Ahmed

The tensions and ongoing war in the Middle East have cast a shadow over the infrastructure sector in a number of African countries, after they caused disruption to the supply of bitumen, the basic material used in the production of asphalt and road paving, leading to higher prices and increased financial pressure on construction companies on the continent.

The war in the Middle East is driving up bitumen prices and hitting African highway robbers hard.

Most African countries rely on importing bitumen, particularly from the Gulf states, due to the lack of domestic production. With disruptions to some supply lines and rising shipping costs, construction companies have found themselves facing increasing challenges in securing the raw materials needed to complete road and infrastructure projects.

In Madagascar, which relies almost entirely on imports to meet its bitumen needs, projects were directly affected by the decline in supplies coming through traditional sea routes.

Companies were forced to turn to European suppliers, but this led to shipping times increasing by up to two additional months, as well as price increases of between 40 and 50 percent in recent months.

This increase led to delays in the implementation of some projects and increased the financial burdens on the implementing companies, which found themselves forced to rearrange their operational plans or look for additional sources of funding to cover the increasing costs.

The repercussions were not limited to Madagascar, as Guinea witnessed a significant increase in bitumen prices exceeding 20 percent in three months, prompting road companies to renegotiate some government contracts.

In cases where contracts do not allow for price adjustments, companies have been forced to reduce their profit margins or incur direct financial losses.

In Cameroon, major companies working on infrastructure projects have begun taking precautionary measures, including requesting a review of government contract prices and establishing strategic stockpiles of raw materials to avoid any potential future shortages.

Experts believe the crisis has exposed the fragility of supply chains upon which many African economies depend, and has shown how local development projects are affected by global geopolitical developments.

They also warned that continued tensions in the Middle East could lead to further pressure on the construction sector, especially with the rise in bitumen prices coinciding with increased fuel and transportation costs, which could affect the pace of road and infrastructure projects in the continent in the coming period.