COMPARE THE COST OF IRON RODS, BARS, AND SHEETS IN

AFRICAN COUNTRIES

BY

ELUFOWOJU IFEOLUWA MATTHEW MP20230101213

ATANDA OLUWASEUN HAMMED MM20230107294
GODWIN LAWRENCE OKOH MP20230107934

A PROJECT SUBMITTED

TO
THE DEPARTMENT OF MECHANICAL ENGINEERING TECHNOLOGY
FACULTY OF ENGINEERING FEDERAL POLYTECHNIC, EDE.

IN PARTIAL FULFILMENT FOR THE AWARD OF HIGHER NATIONAL

DIPLOMA IN MECHANICAL ENGINEERING TECHNOLOGY.

APRIL 2024.

1
 CERTIFICATION

This is to certify that this project report was written by Elufowoju Matthew Ifeoluwa-
MP20230101213, Atanda Oluwaseun Hammed-20230107294, and Godwin Lawrence Okoh-
MP20230107934.

___________________________ ___________________________
Supervisor Date

Engr.Godwin C.Enwerem

2
 ACKNOWLWDGEMENT
We are grateful to almighty God for the grace given to me, his guidance, protection and mercy so
far. We specially acknowledged our parents and siblings, friends who gave us physical, financial
and emotional support. We appreciate our supervisor for the time, effort and their contributions,
and all other staff of the department.

3
 ABSTRACT
The aim of this project is to conduct a modified analysis of the cost of iron rods, bars and sheets
in African countries. This study focuses on surveying the factors influencing price disparities
across different regions within Africa, including market dynamics, supply chain intricacies and
economic conditions. Their data will be gathered from primary and secondary sources, including
industry reports, and trade data. Analytical techniques such as regression analysis and market
modelling will be employed to identify the major factor of price variation and to provide insights
into the underlying factors shaping the pricing structures. The main purpose of this research is to
contribute and have a better understanding of the iron and steel market in Africa and offer
valuable awareness for policymakers, industry stakeholders, and consumers alike.

4
 TABLE OF CONTENTS
Dedication certification ii
Acknowledgement iii
Abstract iv
List of Tables v
CHAPTER ONE
1.0 Introduction 1
1.1 Problem statement 1
1.2 Problem Statement 2
1.3 Aim and Objectives 2
1.3.1 Aims 2
1.3.2 Objectives 2
1.4 Scope of the study 2

CHAPTER TWO
2.0 Literature review 3
2.1 Production and Importation 3
2.2 Steel Products 3
2.3 Reducing Construction Cost 3

CHAPTER THREE
3.0 Methodology 4
3.1 Data Collection 5
3.2 Country Selection 6
3.3 price Comparison 7
CHPTER FOUR
4.0 Result and Discussion 8
4.1 Policy Intervention 9
CHAPTER FIVE
5.1 CONCLUSION

5
 CHAPTER ONE

INTRODUCTION

Iron rods, Bars and Sheet is crucial to the development of any modern economy and is
considered to be the backbone of human civilization. The level of per capital consumption of
iron rod is treated as one of the important indicators of socio-economic development and living
standard of the people in any country. It is a product of a large and technologically complex
industry having strong forward backward linkage in terms of cost, material flow and income
generation.
Iron rod is one of the first two resources available to craft after the hub is built, the other
being iron plate. They are one of the basic materials used for many structures. They are long
cylindrical pieces of iron and are usually solid. They have a circular cross-section. Iron rods are
commonly used in construction, manufacturing and several engineering application. They
provide structural support and reinforcements in some infrastructure projects. The bars are
similar to rods but may vary in shape and size. It can be square, rectangular, or even hexagonal
in cross-section. Bars serve as a component in machinery and equipment. They are used for
making shafts, they come in various lengths and diameters to suit different applications.
Sheet metal is a type of material that is flattened into thin sheets. Sheet metal is made by
taking a large cast in and rolling into a long ribbon of the thickness it wants. The flat metal is
rolled into a coil and sent directly or cut the metal into sheets before being sent to a machine
shop. The sheets are made from different type of metal such as aluminum, brass, copper, steel,
tin, nickel, and titanium. The sheets can thickness depends on the material needed for a project.
Thickness can vary from 0.15-6.00mm significantly; extremely thin sheets are considered foil or
leaf, and pieces thicker than 6mm (0.25 in) are considered plate steel or structural steel.

1.1 BACKGROUND OF THE STUDY

In concrete structure, the reinforced iron rods is necessary to compensate for the fact that plain
concrete is good in compression and relatively weak in tension. Therefore, embedding steel bars
into the concrete structural member will take care of tensile load imposed on the structures
thereby increasing its overall strength and durability. These useful properties make it more

6
acceptable as a construction material in the construction industries everywhere around the globe
in making reinforced concrete structures building, bridge tunnel.
Steel bar is commonly used as primary reinforcement which provides resistance to support
design loads in the structural element. It can serve as a secondary reinforcement for durability
and aesthic reasons.

1.2 PROBLEM STATEMENT

Due to the rising concern for the collapse of building in some part of Nigeria, the mechanical
properties of iron rods, steels commercially available in the market was experimentally
investigated and traced to the high cost of the materials. In Africa most local construction
companies obtain their reinforcing steel bars from open local market without any technical
information on the quality of the materials. Therefore there is need to carry out a qualitative
analysis of iron rods, steels, because of its vital role played in engineering constructions.

1.3 AIMS AND OBJECTIVES

1.3.1 AIMS

The aim of this project is to analyze the prizing trends, identify cost disparities or evaluate
market competitiveness. It could help businesses make informed decision about sourcing
materials or entering new market based on cost efficiency.

1.3.2 OBJECTIVE
1 To identify the most practical sources for procurement, access market, competitive or
inform strategic decision.
2 For business operating in or entering African markets.

1.4 SCOPE OF THE STUDY

This standard specifies the requirements and price of iron rods, iron bars, and sheet used in
different aspect. The factors such as costs, tariffs, import and export dynamics. To bound the
understanding of market trends, economic conditions, government policies and infrastructure
development in each countries.

7
 CHAPTER TWO
LITERATURE REVIEW

It is against the background that this study offers the view that the development of the
iron bars, rods and sheet. Its affiliated uses is crucial to the growth and industrialization of
sustainable development. A development that sound ideally but defined by different societies but
supported in a collaborative way by development partners.
In focusing on the iron and sheet industry, a leading sub-factor of the manufacturing
industry. Science and technology sustainably increases man’s ability to understand the world and
not to live in fear at both the micro and macro levels and gives a man a powerful support to boost
his or her new wellbeing. (Spiegel Rosing and Derek de Solla Price 1977)

Iron hoes circulated as money in Africa, and Indochina, and were the smallest monetary unit of
the bahmar people.
During the nineteenth century, iron bars circulated as money in the Congo. During the nineteenth
century, iron hoes circulated in the remote areas of Sudan. The western Uganda Chiga used hoes
as their unit of account without using of them as a medium of exchange or store of value. In
Portuguese East Africa a hoe standard replaced a cattle standard, and some hoes circulated only
as currency and were never used agriculturally. In the French Congo, iron bars, shovels, hoes,
blades, and iron double bells played the role of currency. In mid-nineteenth-century Nigeria, a
slave cost 40 iron hoes.
In 1824, 394 currency bars were found, 1.2m below the surface, at a re-used camp on Meon Hill.
In 1860, currency bars were discovered at the camp on the water.
In 1942, Iron currency bars were found around lyvln Bach and the surrounding peat bog in
Wales.

2.1 PRODUCTION AND IMPORTATION

In 2023, the African market for hot-rolled steel bars and iron rods decreased by X% to
$X, falling for the second year in a row after five years of growth. Overall consumption
continues to indicate abrupt slump. The level of consumption peaked at $X in 2021; however,
from 2022 to 2023, consumption stood at a somewhat lower figure.
In value terms rod production and bar shrank significantly to $X in 2023 was the most
pronounce in 2017 when the production volume increased by $X in 2019; however, from 2020 to
2023, production failed to regain momentum.

8
 In 2023, the amount of iron rods and bars exported in Africa skyrocketed to X tons,
increasing by X% against 2022 figures. Overall, exports showed a buoyant expansion. The pace
of the growth was the most pronounced in 2021 with an increase. Over the periods under review,
the export hit records high in 2023 and are expected to retain growth in the immediate term.
In value terms, hot-rolled steel bar and rod exports surged to $X in 2023. In general,
exports recorded a strong increase. The pace of growth was the most pronounced in 2021 with an
increase of X%. Over the period under review, the exports reached the peak figure in 2023 and
are likely to continue growth in years to come.
In 2023, Egypt (X tons) and Algeria (X tons) represented the major exporters of hot-
rolled steel bars and rods in Africa, together committing X% of total exports. It was distantly
followed by South Africa (X tons), committing a X% share of total exports. The following
exporters - Tunisia (X tons), Zambia (X tons), Senegal (X tons) and Benin (X tons) - each
resulted at an X% share of total exports. From 2012 to 2023, the biggest increases were recorded
for Algeria (with a CAGR of X %), while shipments for the other leaders experienced more
modest paces of growth. In value terms, Egypt ($X), Algeria ($X) and South Africa ($X) were
the countries with the highest levels of exports in 2023, with a combined X% share of total
exports. In terms of the main exporting countries, Algeria, with a CAGR of X%, recorded the
highest growth rate of the value of exports, over the period under review, while shipments for the
other leaders experienced more modest paces of growth.
The iron technology Metallographic analysis has been conducted, to date, on some 50
iron objects from the Upemba graves, including axes and knives for ritual, ceremony, and utility,
along with hoes, bracelets, belts, decorative nails, fishing equipment, and spears. From the
earliest times to the rise of the Luba state, the iron workers knew how to create and work
wrought iron and various grades of steel. (Fairly regular production of cast iron may have been
developed in more recent times, but more extensive data are required.) When these metals were
removed from the iron smelting furnaces, smiths understood their different physical properties
and knew how to adapt them for particular functions. For example, a spear and thin ceremonial
axe blade from the tenth century were made of low carbon steel and strengthened by work
hardening.
The chapter focuses on the underlying factors explaining high construction costs in
Africa and possible solutions for lowering costs. A value chain analysis shows that the rising

9
prices of building materials, large shares of imports, and inefficiencies in the construction
process are the main factors that lead to the high costs of housing construction in Africa. The
chapter emphasizes the need to consider the broader development objectives in the choice of
solutions aimed at lowering construction costs, in order to increase housing affordability in
Africa. Taking an industrial approach, using labor-intensive technologies including local
technologies, improving efficiency and reducing waste, producing building materials locally,
densifying, and increasing the availability of skills are viable avenues for reducing construction
costs and increasing housing supply.

2.2 STEEL PRODUCTS

In addition to the extensive usage of steel in infrastructure projects, the large quantity of
reinforcing steel bars used in Africa’s housing construction contribute to high demand of steel in
the continent. However, the size of Africa’s steel industry is still very limited. In 2013 for
instance, total production was estimated at 16.1mtpa while imports amounted to 25mtpa (world
steel association yearbook 2013) South Africa and Egypt were by far the largest producers in
2013 with the production 7.3 and 6.7mta. Other countries such as Angola, Kenya, and Nigeria
are trying to increase their production.
The Unctad’s trade database has been used to calculate the value of steel imports for all
African countries. Overall African imported us $14.8 billion in 2014, which is 19% higher than
that of 2010 imported.

2.3 REDUCING CONSTRUCTION COST

The high cost of Iron Rods, Bars, sheet and other housing construction have made it very
difficult and often impossible to provide affordable housing for majority of middle-income
households.

10
 CHAPTER THREE
METHODOLOGY
3.1 DATA COLLECTION
Steel rebar futures soared to the CNY 3,600 per tonne level, surging from the four-year low of
CNY 3,330 on April 3rd amid improving signs of global demand. The latest customs data
showed that steel exports out of China, the world’s top producer, surged by over 25% from the
previous year in March to nearly 10 million tonnes, the highest since 2016, suggesting that
foreign consumers are willing to take advantage of lower prices amid the lack of bidding
domestically. The developments coincided with hopes that the plunge in domestic demand may
bottom as Chinese fixed-asset investment accelerated more than markets forecasted in the first
quarter, a sign that stimulus from Beijing could translate to greater demand for steel-intensive
construction. In the meantime, US President Biden proposed raising tariffs on Chinese steel,
although the small segment of Chinese steel sales to the US, in addition to the large extent of
existing barriers, minimizes the impact on global markets.

Reinforcements, such as iron rods, or steel bars, are important structural components of
any building and are mainly used to receive and transfer loads from one point to another. Iron
rods come in different sizes, sometimes the structural engineer may recommend 12mm, 16mm,
20mm, 25mm, 10mm, 8mm, or others depending on the strength of the material and other design
specifications. There are four types of iron rods used for load-bearing purposes. They include
cold steel, pressed steel, hot deformed bars, and mild steel plain bars. The type commonly used
in enhancing the tensile strength of concrete in beams and columns in Nigeria falls under the Hot
Rolled Deformed Bars category, and that is the most popular of all rod types. In case you are
going to the building material markets soon, these reinforcements are commonly known as iron
rods by traders, and they take different finishes for different construction purposes. For small-to-
medium-scale projects, 6mm, 8mm and 10mm bar sizes will economically do the work without
adding unnecessary weight to the building. But for complex engineering constructions like
bridges, and tunnels, where the length of work runs in kilometers, higher-diameter bars will be
needed so as not to degrade the structural integrity of the project. For contractors, real estate

11
developers, structural engineers, masons, quantity surveyors or estimators who may want to
know the price per kg of iron rods in their locality, know now that it may vary as the amount

Provided here is the likely cost of this building material this year. Depending on how you choose
to order them, retail or wholesale quantities are usually sold per ton.

The average price per ton of TMT iron rods for March 12, 2024, is ₦420,000. Below is
the price list for a single 12 meter length of TMT rods. The amounts listed above are for a unit
rate; to get how much a tonnage costs, you have to multiply the unit amount with the
corresponding quantity. For the price of locally made Nigerian rods, a ton of 12mm iron rod is
₦415,000 naira. The same price applies to other sizes per ton.

3.2 COUNTRY SELECTION

Steel Rebar is mostly traded on the Shanghai Futures Exchange and London Metal
Exchange. The standard future contract is 10 tons. Steel is one of the world’s most important
materials used in construction, cars and all sorts of machines and appliances. By far the biggest
producer of crude steel is China, followed by European Union, Japan, United States, India,
Russia and South Korea. The steel prices displayed in Trading Economics are based on over-the-
counter (OTC) and contract for difference (CFD) financial instruments. Our steel prices are
intended to provide you with a reference only, rather than as a basis for making trading
decisions. Trading Economics does not verify any data and disclaims any obligation to do so.

3.3 PRICE COMPARISON

The cost per unit and the transportation cost of iron rods, bars, varies depending on the
factors such as location, the market demand, import rates and exchange rates. Shipping and
transportation costs can fluctuate based on distance, mode of transportation, and logistics
infrastructure. The Iron and Steel industry has grown over the decades to be largest sectors and
businesses in the world. The top iron & steel companies are Arcelor Mittal, VALE, Nippon Steel
& Sumitomo Metal, POSCO & JFE Steel along with brands like Baosteel, TATA Steel, Hyundai
Steel, Kobe Steel and NUCOR. It continues to contribute to the major industries like
Manufacturing, Construction, Automobiles, Defense and Transportation etc. In fact we can see
Iron and Steel products in every aspect of our daily lives. To remind once, Steel is an alloy of
Iron and other elements like Carbon etc. The wide application of steel products comes from their
tensile strength and low costs. Consumption of steel products is largely dependent on the growth

12
of the national economy which means the steel industry is cyclical in nature. The consumption of
steel in the world is measured in crude steel production terms as crude steel would later be
converted to various forms of steel products.

 Supply and Demand - Similar to any commodity, scarcity drives up the price of steel.
With the growing demand for steel due to its expanding applications, assessing current
and projected supply and demand levels helps determine the appropriate cost per unit.
 Materials Cost - Steel comprises different components, primarily recycled scrap metal
and iron ore. When these raw materials are scarce, it naturally increases the cost of the
final product. Any spikes in the prices of these raw materials directly affect the cost of
steel.
 Shipping and Labor Costs - Local production often results in lower costs, but this is not
always the case. Transportation and shipping expenses in and out of specific regions, like
South Africa, fluctuate depending on factors such as the time of year, currency strength
(e.g., the Rand), and political situations. Sometimes, importing raw materials or steel
itself can be more cost-effective than domestic production. However, there has been
pressure on the manufacturing industry to prioritize local materials to boost jobs, which
may lead to higher labour costs.
 Currency Fluctuations - The strength of the US Dollar and the local currency, such as
the Rand, significantly impact steel prices. A weaker currency can affect even the most
resilient industry.
 Energy Costs - Steel production requires significant amounts of energy, particularly in
the form of electricity and fuel. Fluctuations in energy prices can impact the cost of steel
production, which can subsequently affect steel prices.
 Government Policies and Regulations - Government policies and regulations related to
trade, tariffs, taxes, environmental regulations, and subsidies can have a significant
impact on the steel industry. Changes in these policies can affect the cost of raw
materials, production processes, and overall market dynamics, thus influencing steel
prices.

13
  Technological Advancements - Technological advancements in steel production
processes can lead to increased efficiency and reduced production costs. Conversely,
technological disruptions or the need for costly upgrades can affect steel prices.
 Global Economic Conditions - The state of the global economy can influence steel
prices. During periods of economic growth and increased construction activity, demand
for steel tends to rise, potentially leading to higher prices. Conversely, during economic
downturns, demand for steel may decrease, which can put downward pressure on prices.
 Geopolitical Factors - Geopolitical events such as trade disputes, sanctions, political
instability, and natural disasters can disrupt the global steel market. These events can
affect the supply and demand dynamics of steel, leading to price fluctuations.

 Speculation and Financial Markets - Like many commodities, steel prices can be
influenced by speculation and trading activities in financial markets. Traders and
investors may speculate on future steel prices based on various factors and market trends,
which can create price volatility.

Central African Republic Imports of other bars and rods of iron or non-alloy steel from Nigeria
was US$962 during 2018, according to the United Nations COMTRADE database on
international trade. Central African Republic Imports of other bars and rods of iron or non-alloy
steel from Nigeria - data, historical chart and statistics - was last updated on April of 2024.

14
 CHAPTER FOUR
RESULT AND DISCUSSION
4.1 POLICY INTERVENTION
Governments should consider implementing policies that promote local steel promotion
such as investment incentives, infrastructure development, and trade facilitation measure. The
countries with abundant ore resources or well developed steel industries may have lower
production costs, leading to higher prices. Conversely countries with heavily reliant on imports
may face higher prices due to the logistics costs.
From the analysis, it was established that the problem of low strength characteristic prevalent in
conventional hot rolled steel bars that entails two factors namely. Metallurgical and process
Dysfunction.

15
 CHAPTET FIVE
5.1 CONCLUSION
The reality, causes and consequences of low strength characteristics exhibited by mild
steel bars produced in Nigeria have been analyzed. It would appear that improved processing
method is the most effective and efficient panacea to the problem. Innovative processing
methods integrate all critical factors namely chemical sound, rolling stock, controlled thermal
vibration during rolling and controlled cooling are imperative. African countries can work
towards fostering a more competitive, sustainable, and resilient iron and steel industry, driving
economic growth and development across the continent.

16
 REFERENCES
British Standards Institution (2005), “BS 4449: 2005, Steel for the reinforcement of concrete:

Weldable reinforcing steel- Bar, coil and de-coiled product specification”,BSI.

H. A. Abdulkareem and M. A. Garba (2015), “Development of Quality Acceptance Sampling

Plan for Imported Hot Rolled Steel Sheet in Nigeria”, Int. J. of Engg. Sci. Inven.,

1,Development_of_Quality_Acceptance_Sampling_Plan_for_Imported_Hot_Rolled_Steel_Sheet

_in_Nigeria. Gbenga Matthew Ayininuola and O. O. Olalusi (2004), “Assessment of BuildinG

Failures in Nigeria: Lagos and Ibadan Case Study Gbenga Matthew Ayininuola and O. O.

Olalusi (2004), “Assessment of Building Failures in Nigeria: Lagos and Ibadan Case

Study”

Costs
A detailed analysis of the housing delivery chain is necessary to identify
the determinants of high house prices. e rst step in the value chain, as
shown in Fig.5.4, is the acquisition of land and provision of bulk infra-
structure. As discussed in Chap. 4, rapid urbanization and the lack of
urban planning have contributed to soaring land prices in major urban
centers across the continent, making well-located land unaordable to
the majority of households. Finance, another critical input of the con-
struction value chain, was discussed at length in Chap. 3 highlighting its
contribution to housing prices. Like nance, the government is also pres-

17
ent in all stages of the value chain, as a regulator, controller, or producer/
customer. Other important inputs in the construction value chain are
design, materials, and labor. e following subsections discuss and ana-
lyze each of the main housing delivery value chain input and their contri-
bution to high construction costs.
Costs
A detailed analysis of the housing delivery chain is necessary to identify
the determinants of high house prices. e rst step in the value chain, as
shown in Fig.5.4, is the acquisition of land and provision of bulk infra-
structure. As discussed in Chap. 4, rapid urbanization and the lack of
urban planning have contributed to soaring land prices in major urban
centers across the continent, making well-located land unaordable to
the majority of households. Finance, another critical input of the con-
struction value chain, was discussed at length in Chap. 3 highlighting its
contribution to housing prices. Like nance, the government is also pres-
ent in all stages of the value chain, as a regulator, controller, or producer/
customer. Other important inputs in the construction value chain are
design, materials, and labor. e following subsections discuss and ana-
lyze each of the main housing delivery value chain input and their contri-
bution to high construction costs.

A detailed analysis of the housing delivery chain is necessary to identify

the determinants of high house prices. e rst step in the value chain, as
shown in Fig.5.4, is the acquisition of land and provision of bulk infra-
structure. As discussed in Chap. 4, rapid urbanization and the lack of
urban planning have contributed to soaring land prices in major urban
centers across the continent, making well-located land unaordable to
the majority of households. Finance, another critical input of the con-
struction value chain, was discussed at length in Chap. 3 highlighting its
contribution to housing prices. Like nance, the government is also pres-
ent in all stages of the value chain, as a regulator, controller, or producer/
customer. Other important inputs in the construction value chain are
design, materials, and labor. e following subsections discuss and ana-
lyze each of the main housing delivery value chain input and their contri-
bution to high construction costs.
A detailed analysis of the housing delivery chain is necessary to identify
the determinants of high house prices. e rst step in the value chain, as
shown in Fig.5.4, is the acquisition of land and provision of bulk infra-
structure. As discussed in Chap. 4, rapid urbanization and the lack of
urban planning have contributed to soaring land prices in major urban
centers across the continent, making well-located land unaordable to
the majority of households. Finance, another critical input of the con-
struction value chain, was discussed at length in Chap. 3 highlighting its
contribution to housing prices. Like nance, the government is also pres-
ent in all stages of the value chain, as a regulator, controller, or producer/
customer. Other important inputs in the construction value chain are

18
design, materials, and labor. e following subsections discuss and ana-
lyze each of the main housing delivery value chain input and their contri-
bution to high construction costs.
A detailed analysis of the housing delivery chain is necessary to identify
the determinants of high house prices. e rst step in the value chain, as
shown in Fig.5.4, is the acquisition of land and provision of bulk infra-
structure. As discussed in Chap. 4, rapid urbanization and the lack of
urban planning have contributed to soaring land prices in major urban
centers across the continent, making well-located land unaordable to
the majority of households. Finance, another critical input of the con-
struction value chain, was discussed at length in Chap. 3 highlighting its
contribution to housing prices. Like nance, the government is also pres-
ent in all stages of the value chain, as a regulator, controller, or producer/
customer. Other important inputs in the construction value chain are
design, materials, and labor. e following subsections discuss and ana-
lyze each of the main housing delivery value chain input and their contri-
bution to high construction costs.
Costs
A detailed analysis of the housing delivery chain is necessary to identify
the determinants of high house prices. e rst step in the value chain, as
shown in Fig.5.4, is the acquisition of land and provision of bulk infra-
structure. As discussed in Chap. 4, rapid urbanization and the lack of
urban planning have contributed to soaring land prices in major urban
centers across the continent, making well-located land unaordable to
the majority of households. Finance, another critical input of the con-
struction value chain, was discussed at length in Chap. 3 highlighting its
contribution to housing prices. Like nance, the government is also pres-
ent in all stages of the value chain, as a regulator, controller, or producer/
customer. Other important inputs in the construction value chain are
design, materials, and labor. e following subsections discuss and ana-
lyze each of the main housing delivery value chain input and their contri-
bution to high construction costs.
Costs
A detailed analysis of the housing delivery chain is necessary to identify
the determinants of high house prices. e rst step in the value chain, as
shown in Fig.5.4, is the acquisition of land and provision of bulk infra-
structure. As discussed in Chap. 4, rapid urbanization and the lack of
urban planning have contributed to soaring land prices in major urban
centers across the continent, making well-located land unaordable to
the majority of households. Finance, another critical input of the con-
struction value chain, was discussed at length in Chap. 3 highlighting its
contribution to housing prices. Like nance, the government is also pres-
ent in all stages of the value chain, as a regulator, controller, or producer/
customer. Other important inputs in the construction value chain are
design, materials, and labor. e following subsections discuss and ana-
lyze each of the main housing delivery value chain input and their contri-

19
bution to high construction costs.
Costs
A detailed analysis of the housing delivery chain is necessary to identify
the determinants of high house prices. e rst step in the value chain, as
shown in Fig.5.4, is the acquisition of land and provision of bulk infra-
structure. As discussed in Chap. 4, rapid urbanization and the lack of
urban planning have contributed to soaring land prices in major urban
centers across the continent, making well-located land unaordable to
the majority of households. Finance, another critical input of the con-
struction value chain, was discussed at length in Chap. 3 highlighting its
contribution to housing prices. Like nance, the government is also pres-
ent in all stages of the value chain, as a regulator, controller, or producer/
customer. Other important inputs in the construction value chain are
design, materials, and labor. e following subsections discuss and ana-
lyze each of the main housing delivery value chain input and their contri-
bution to high construction costs.
Costs
A detailed analysis of the housing delivery chain is necessary to identify
the determinants of high house prices. e rst step in the value chain, as
shown in Fig.5.4, is the acquisition of land and provision of bulk infra-
structure. As discussed in Chap. 4, rapid urbanization and the lack of
urban planning have contributed to soaring land prices in major urban
centers across the continent, making well-located land unaordable to
the majority of households. Finance, another critical input of the con-
struction value chain, was discussed at length in Chap. 3 highlighting its
contribution to housing prices. Like nance, the government is also pres-
ent in all stages of the value chain, as a regulator, controller, or producer/
customer. Other important inputs in the construction value chain are
design, materials, and labor. e following subsections discuss and ana-
lyze each of the main housing delivery value chain input and their contri-
bution to high construction costs.

20