Statement by Eng. Hassan Abdelaziz the President of the African Federation for Construction Contractors’ Associations (AFCCA) to Alborsaa Journal on the Impact of US Dollar Fluctuations on the Construction Sector in Africa
Eng. Hassan Abdelaziz, President of the African Federation for Construction Contractors’ Associations (AFCCA), stated that increases in the US dollar exchange rate have a direct impact on construction project costs, given the sector’s reliance on imported materials and components.
He explained that exchange rate fluctuations naturally affect the prices of many construction materials, noting that some locally manufactured products, such as steel and cement, also depend partially on imported production inputs. Transportation and logistics costs are likewise influenced by global price movements.
He further highlighted that price adjustment clauses in construction contracts represent an important mechanism for maintaining contractual balance among all stakeholders. These mechanisms allow contractors to be compensated when the prices of key materials increase, while also allowing for downward adjustments when prices decline, particularly for materials linked to global markets.
Eng. Abdelaziz added that the level of impact varies depending on the nature of each project, noting that projects involving electromechanical components are typically more affected due to their greater dependence on imported supplies.
He also indicated that continued increases in the US dollar may lead to further rises in construction material prices, which could consequently affect real estate prices. He emphasized that the scale of such increases will remain closely tied to future exchange rate trends.
He stressed the importance of the timely settlement of contractors’ financial dues and the proper implementation of price adjustment mechanisms, given their critical role in ensuring the smooth continuation of project execution according to planned timelines and avoiding delays caused by financial pressures on contractors.
He concluded by noting that uncertainty surrounding exchange rate movements may prompt some developers to reassess project costs or adjust pricing strategies, particularly for projects that have not yet been launched.
Source:
https://www.alborsaanews.com/2026/03/24/1956481
