The publisher expects the construction industry in South Africa to grow by 1.9% in real terms in 2024, supported by the government’s focus on infrastructure development, to achieve high economic growth and expand access to basic services. The South African government presented its medium-term budget policy statement in November 2023. As part of the statement, the government announced a plan to establish the “Infrastructure Finance and Implementation Support Agency” to attract private sector finance and expertise into public infrastructure programmes. The government will also widen the scope for concessional borrowing, through which private-sector investors and multilateral institutions can co-invest with the government in selected infrastructure projects. As part of its next budget that is scheduled to be unveiled in February 2024, the government plans to announce measures to help the automotive sector transition to new energy vehicle (EV) production.
Forecast-period growth in the South African construction industry will also be supported by investments in the transport, energy, industrial and housing projects. The government plans to increase the share of renewable energy in its total electricity mix from 11% in 2019 to 41% by 2030 and decommission 8-12GW of coal-fired power plants by the end of 2030. In mid-December 2023, the government launched a bidding round for over 7.6GW of new power generation capacity, to address power outage in the country. This includes bids for 5GW of renewable energy - including bids for 3.2GW of onshore wind and 1.8GW of solar photovoltaic (PV) power capacity, 2GW of energy via gas and 615MW from battery storage. Bid submission is scheduled for April 2024, with the winners expected to be announced three months post the bid submission date. Previously, in November 2023, the government had secured ZAR31.8 billion ($1.9 billion) in concessional loans from major international lenders, for its energy transition plan. In a boost to the industry’s output, in late November 2023, the South African National Roads Agency SOC Limited (Sanral) announced that it will re-advertise 86 road construction tenders, collectively valued at ZAR7.2 billion ($430.4million); these projects were among those stalled due to a legal impasse between Sanral and some construction companies.
Forecast-period growth in the South African construction industry will also be supported by investments in the transport, energy, industrial and housing projects. The government plans to increase the share of renewable energy in its total electricity mix from 11% in 2019 to 41% by 2030 and decommission 8-12GW of coal-fired power plants by the end of 2030. In mid-December 2023, the government launched a bidding round for over 7.6GW of new power generation capacity, to address power outage in the country. This includes bids for 5GW of renewable energy - including bids for 3.2GW of onshore wind and 1.8GW of solar photovoltaic (PV) power capacity, 2GW of energy via gas and 615MW from battery storage. Bid submission is scheduled for April 2024, with the winners expected to be announced three months post the bid submission date. Previously, in November 2023, the government had secured ZAR31.8 billion ($1.9 billion) in concessional loans from major international lenders, for its energy transition plan. In a boost to the industry’s output, in late November 2023, the South African National Roads Agency SOC Limited (Sanral) announced that it will re-advertise 86 road construction tenders, collectively valued at ZAR7.2 billion ($430.4million); these projects were among those stalled due to a legal impasse between Sanral and some construction companies.
The report provides detailed market analysis, information and insights into the South African construction industry, including:
- The South African construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the South African construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope
This report provides a comprehensive analysis of the construction industry in South Africa. It provides -- Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in South Africa, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using the standardized valuation and forecasting methodologies.
- Assess market growth potential at a micro-level with over 600 time-series data forecasts.
- Understand the latest industry and market trends.
- Formulate and validate strategy using the critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
