Afcons Eyes Major Growth in Europe and Middle East as African Markets Slow

Afcons Infrastructure, a prominent company within the Shapoorji Pallonji Group, is strategically pivoting its focus towards Europe and the Middle East amidst growing challenges in the African markets. The company is currently awaiting formal approval for three significant projects in Croatia valued at over ₹11,300 crore (around 1.4 billion USD).

Expansion Plans and Market Shift

Currently, international projects constitute only 12% of Afcons’ total order book. The anticipated contracts in Croatia are poised to substantially increase this proportion, enabling the company to strengthen its footprint beyond its traditional markets.

Afcons is well-regarded for its expertise in infrastructure development and construction and is actively pursuing opportunities in Europe where infrastructure investment is projected to rise in the coming years. This strategic shift is also a response to economic and political challenges in Africa that have hampered project approvals and construction activities.

Significance of Croatia Projects

The bids in Croatia encompass critical infrastructure development such as:

• Highways
• Bridges
• Tunnels

These projects are strategically important for Europe’s infrastructure network upgrades aimed at enhancing connectivity and meeting increasing demand.

Growth Prospects and Regional Interests

Industry experts suggest that focusing on Europe and the Middle East could significantly enhance Afcons’ global profile and revenue. Additionally, the company is exploring opportunities in the Middle East, including countries like the United Arab Emirates, Saudi Arabia, and Qatar, which continue to invest heavily in infrastructure development.

Strategic Importance

This geographical diversification is designed to reduce Afcons’ dependence on the African markets, which have been affected by currency volatility and political instability. The management is confident that their expansion into Europe and the Middle East will provide a more stable and profitable growth trajectory.

The formal awarding of the Croatian contracts is anticipated in the coming weeks, following which Afcons will begin resource mobilization and planning for project execution. This marks a key milestone in the company’s international expansion efforts.

Stay tuned for more updates from Questiqa Europe News.

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