The construction industry in Tunisia is projected to grow at a compound annual growth rate (CAGR) of 1.54%, driven by investments in infrastructure construction, healthcare, industry, education construction and housing projects, according to a Timetric report.

Titled ‘Construction in Tunisia – Key Trends and Opportunities to 2020‘, the report provides a detailed insight into the recovery of the domestic construction sector. The industry experienced a period of stagnant growth from 2011 to 2015 with its output value registering a CAGR of just 0.30%. The report further highlights how political instability in the country affected the investor confidence leading to a period of sluggish growth.

Buoyed by a new constitution and improving economy, Tunisia’s construction industry is expected to recover and improve from 2016 to 2020. The Timetric report details the government’s focus on improving and enhancing the road and bridges network in the country with a planned investment of TND336.5m ($172.9m). The funds will be used for the construction of 79.0km of roads, seven bridges and two interchanges.

The Tunisian authorities are also constructing a high-speed rail network as part of infrastructure development and a signed an agreement from 2014. The project is expected to be completed by 2017 and received TND2.5bn ($1.3bn) from the government.

According to the report, industrialisation, urbanisation and population growth will be the main catalysts to the growth of the construction sector in Tunisia.