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The Construction Sector in South Africa 2022

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    Report

  • 222 Pages
  • August 2022
  • Region: South Africa
  • Who Owns Whom
  • ID: 5648985

The Construction Sector in South Africa

The construction sector contributed 2.7% of total GDP, with the largest share contributed by construction works/civil engineering, followed by residential buildings and non-residential buildings. Although companies continue to experience headwinds, role players say there are some green shoots. Construction industry players have welcomed government’s announcement in February 2022 of infrastructure investment of more than R810bn over the next three years, but say that rapid implementation is critical as the industry cannot afford further delays.

Government Support and Investment

The rollout of government’s infrastructure projects has been undermined by maladministration and corruption, project delays, cost overruns, poor project management and sub-standard workmanship in many cases. South Africa’s National Infrastructure Plan (NIP) 2050 has identified the energy and water sectors for development in the short term and transport in the medium term. There is a massive backlog of social housing and an estimated 20% of urban households live in informal settlements.

Challenges

The execution of construction projects has been severely affected by supply chain delays, shortages and higher costs related largely to the pandemic and the war in Ukraine. Corruption and irregular procurement have become endemic in the construction sector. Construction mafia and extortion groups present a substantial threat to the industry. Shortages of building materials, compounded by soaring transport costs and inflation, are driving up construction costs and resulting in cost overruns.

Report Coverage

This report on the construction industry in South Africa includes comprehensive information on the size and state of the sector including number of registered contractors and projects and other indicators, infrastructure development, notable players, major developments and corporate actions, and regulatory and environmental issues affecting the sector. There are profiles of 55 companies including well-known contractors such as Concor, Grinaker LTA, Raubex, Stefanutti Stocks and Wilson Bayly Holmes-Ovcon, state-owned players such as the South African National Roads Agency and specialist companies including Viva Formwork and Scaffolding, SA Scaffold Manufacturing and Kwikspace Modular Buildings.

Table of Contents

1. INTRODUCTION
2. DESCRIPTION OF THE INDUSTRY
2.1. Industry Value Chain
2.2. Geographic Position
2.3. Size of the Industry
2.4. Key Success Factors and Pain Points
3. LOCAL
3.1. State of the Industry
3.2. Key Trends
3.3. Notable Players
3.4. Corporate Actions
3.5. Regulations
3.6. Enterprise Development and Social Economic Development
4. AFRICA5. INTERNATIONAL
6. INFLUENCING FACTORS
6.1. COVID-19
6.2. Economic Environment
6.3. Environmental Issues
6.4. Labour
6.5. Technology, Research and Development (R&D) and Innovation
6.6. Government Support and Investment
6.7. Input Costs
7. COMPETITIVE ENVIRONMENT
7.1. Ownership Structure of the Industry
7.2. Barriers to Entry
8. SWOT ANALYSIS9. OUTLOOK10. INDUSTRY ASSOCIATIONS & ORGANISATIONS
11. REFERENCES
11.1. Publications
11.2. Websites
  • Appendix
  • Summary of Notable Players
  • Company Profiles
  • Arnott Panels (Pty) Ltd
  • Axsys Projects (Pty) Ltd
  • Basil Read Holdings Ltd
  • Bilfinger Intervalve Africa (Pty) Ltd
  • Bluhm Burton Engineering (Pty) Ltd
  • Bosch Projects (Pty) Ltd
  • Cape Scaffolding Contractors (Pty) Ltd
  • Cato Ridge Electrical Construction (Pty) Ltd
  • Colas Africa Holdings (Pty) Ltd
  • Concor Construction (Pty) Ltd
  • Construction Maintenance Services (Pty) Ltd
  • Diabor (Pty) Ltd
  • Edwin Construction (Pty) Ltd
  • Enza Construction (Pty) Ltd
  • Esor Ltd
  • EXR Construction (Pty) Ltd
  • Fairbrother Geotechnical Engineering (Pty) Ltd
  • Fikile Construction (Pty) Ltd
  • Fluor South Africa (Pty) Ltd
  • Geomechanics (Pty) Ltd
  • Grinaker LTA (Pty) Ltd
  • Group Five Construction (Pty) Ltd
  • Hatch Africa (Pty) Ltd
  • Haw and Inglis Civil Engineering (Pty) Ltd
  • Isowall Southern Africa (Pty) Ltd
  • Johannesburg Scaffolding (Pty) Ltd
  • Johnson Controls International (Pty) Ltd
  • Kaefer Energy Projects (Pty) Ltd
  • Kwikspace Modular Buildings (Pty) Ltd
  • M C E Fabrication and Construction (Pty) Ltd
  • Malinga Scaffolding and Formowork (Pty) Ltd
  • Mazor Group (Pty) Ltd
  • Motheo Construction Group (Pty) Ltd
  • Pezula Access Scaffolding (Pty) Ltd
  • Power Construction (Pty) Ltd
  • ProFix Scaffolding (Pty) Ltd
  • Ramutsa Rail CC
  • Raubex Group Ltd
  • Ro-Al Construction (Pty) Ltd
  • SA Scaffold Manufacturing (Pty) Ltd
  • South African National Roads Agency SOC Ltd (The)
  • Stefanutti Stocks Holdings Ltd
  • TCM Developments (Pty) Ltd
  • Tiber Construction (Pty) Ltd
  • Tisang Group (Pty) Ltd
  • TN Molefe Construction (Pty) Ltd
  • Top Fix (Pty) Ltd
  • Trencon Construction (Pty) Ltd
  • Umso Construction (Pty) Ltd
  • Viva Formwork and Scaffolding (Cape Town) (Pty) Ltd
  • Waco Africa (Pty) Ltd
  • Wilson Bayly Holmes-Ovcon Ltd
  • WK Construction (Pty) Ltd
  • WK Construction South Africa (Pty) Ltd
  • Wood South Africa (Pty) Ltd

Companies Mentioned

  • Advanced Bitumen Products Ltd
  • Alviprox (Pty) Ltd
  • Applied Vehicle Analysis (Pty) Ltd
  • Arnott Panels (Pty) Ltd
  • Atlantis Drill and Engineering Equipment (Pty) Ltd
  • Atlantis Group of Companies (Pty) Ltd
  • Atlantis Hydraulic Supplies and Service (Pty) Ltd
  • Atlas Renewables (Pty) Ltd
  • Aveng (Pty) Ltd
  • Aveng Moolmans Holdings (Pty) Ltd
  • Aveng Moolmans Intellectual Property (Pty) Ltd
  • Axsys Projects (Pty) Ltd
  • B and W Instrumentation and Electrical SA (Pty) Ltd
  • B-Quip (Pty) Ltd
  • Babcock Financial Services (Pty) Ltd
  • Babcock MCS Mozambique Lda
  • Babcock Mocambique Lda
  • Babcock Namibia Services (Pty) Ltd
  • Bapsco (Pty) Ltd
  • Basil Read Holdings Ltd
  • Basil Read St Helena Ltd
  • Bex Express (Pty) Ltd
  • Bigwill Enterprises 10 (Pty) Ltd
  • Bilfinger Intervalve Africa (Pty) Ltd
  • Bluhm Burton Engineering (Pty) Ltd
  • Bosch Projects (Pty) Ltd
  • Breeze Court Investments 31 (Pty) Ltd
  • Building Energy Uganda Ltd
  • Byrne Bros (Formwork) Ltd
  • Byrne Group Ltd
  • Byrne Group UK Ltd
  • Byrne Plant Ltd
  • Cape Scaffolding Contractors (Pty) Ltd
  • Cato Ridge Electrical Construction (Pty) Ltd
  • China Harbour Engineering Company SA (Pty) Ltd
  • Chorus Group Holdings Ltd
  • Chorus Group Ltd
  • Cloetesdal Developments (Pty) Ltd
  • Colas Africa Holdings (Pty) Ltd
  • Concor Construction (Pty) Ltd
  • Concor Holdings (Pty) Ltd
  • Construction Maintenance Services (Pty) Ltd
  • Crushco (Pty) Ltd
  • Danoher Botswana (Pty) Ltd
  • DB Engineering & Consulting India Pvt Ltd
  • DB International (Beijing) Co Ltd
  • DB International Brasil Servicos de Consultoria Ltda
  • Diabor (Pty) Ltd
  • Dozer Mining (Pty) Ltd
  • Drilling and Blasting (Pty) Ltd
  • Edwin Construction (Pty) Ltd
  • Enza Construction (Pty) Ltd
  • Esor Ltd
  • EXR Construction (Pty) Ltd
  • EXR Mining (Pty) Ltd
  • Fairbrother Geotechnical Engineering (Pty) Ltd
  • Falcon Renewables (Pty) Ltd
  • Fasttrax Holdings Ltd
  • Fasttrax Ltd
  • FB Ellmer Ltd
  • Fikile Construction (Pty) Ltd
  • Fluor Global Plant Services (Pty) Ltd
  • Fluor South Africa (Pty) Ltd
  • Fluor-Igoda Projects (Pty) Ltd
  • Form-Scaff (Kenya) Pty Ltd
  • Fraser Alexander (Chile) SA
  • Fraser Alexander Lesotho (Pty) Ltd
  • Fraser Alexander Mozambique Ltda
  • Fraser Alexander Servicos de Mineracao do Brasil Ltda
  • Fraser Alexander Zambia Ltd
  • Gateway JV
  • GCR Mongolia LLC
  • Geomechanics (Pty) Ltd
  • Gigajoule (Pty) Ltd
  • Gigajoule Power (Pty) Ltd
  • Gigawatt Mozambique SA Ltda
  • Grinaker LTA (Pty) Ltd
  • Group Five Construction (Pty) Ltd
  • Grunwald Construction (Pty) Ltd
  • Guma Red Rocket (Pty) Ltd
  • Hatch Africa (Pty) Ltd
  • Haw and Inglis Civil Engineering (Pty) Ltd
  • Haw and Inglis Projects (Pty) Ltd
  • Hill Construction Namibia (Pty) Ltd
  • Hillary Construction Botswana (Pty) Ltd
  • Hillary Construction Zambia Ltd
  • Howard Quarry (Pty) Ltd
  • Imvelo Concession Company (RF) (Pty) Ltd
  • InCycle Shotcrete Pty Ltd
  • Infralink Pvt Ltd
  • infraView GmbH
  • Inzalo Crushing and Aggregates (Pty) Ltd
  • Isowall Southern Africa (Pty) Ltd
  • Johannesburg Scaffolding (Pty) Ltd
  • Johnson Controls International (Pty) Ltd
  • Kaefer Energy Projects (Pty) Ltd
  • Kai Garib O and M (Pty) Ltd
  • KBR (UK) Investments Ltd
  • Kellogg Brown & Root (Greenford) Ltd
  • Kellogg Brown & Root (UK) Ltd
  • Kellogg Brown & Root DH Ltd
  • Kellogg Brown & Root Group Ltd
  • Kellogg Brown & Root Holdings (UK) Ltd
  • Kellogg Brown & Root Holdings Ltd
  • Kellogg Brown & Root London Holdings Ltd
  • Kellogg Brown & Root London Ltd
  • Kellogg Brown & Root Ltd
  • Kellogg Brown & Root Overseas Operations Ltd
  • Kellogg Brown & Root Overseas Projects Ltd
  • Kemparkto (Pty) Ltd
  • Komani Quarry (Pty) Ltd
  • Kwik-Form Angola Lda
  • Kwikform Botswana (Pty) Ltd
  • Kwikspace Modular Buildings (Pty) Ltd
  • L and R Civil (Pty) Ltd
  • Leanocol (Pty) Ltd
  • LTA Construction (Kenya) Ltd
  • Lufhereng Development Company (RF) (Pty) Ltd
  • M C E Fabrication and Construction (Pty) Ltd
  • Malinga Scaffolding and Formowork (Pty) Ltd
  • Malmesbury Sand (Pty) Ltd
  • Master Drilling (Pty) Ltd
  • Master Drilling Ghana Sprl
  • Master Drilling Mining Services (Pty) Ltd
  • Master Drilling New Technology Holding (Pty) Ltd
  • Master Sinkers (Pty) Ltd
  • Master Tunneling (Pty) Ltd
  • Matlosana Industries (Pty) Ltd
  • Mazor Group (Pty) Ltd
  • MD Training Services (Pty) Ltd
  • Middelburg Quarry (Pty) Ltd
  • Mokwena Surfacing (Pty) Ltd
  • Moolmans Plant South Africa (Pty) Ltd
  • Moolmans South Africa (Pty) Ltd
  • Motheo Construction Group (Pty) Ltd
  • MRCN Pty Ltd
  • Murray & Roberts (Botswana) (Pty) Ltd
  • Murray & Roberts Contractors Investments (Botswana) Ltd
  • Murray and Roberts Construction Kenya Ltd
  • Murray and Roberts Construction Ltd
  • Murray and Roberts Construction Uganda Ltd
  • Ndlu Housing (Pty) Ltd
  • Oakleaf Investment Holdings 86 (Pty) Ltd
  • Orapa FRD JV
  • Pendle Russells Ltd
  • Pezula Access Scaffolding (Pty) Ltd
  • Phuhlisa Development Solutions (Pty) Ltd
  • Power Civil and Building Contractors Namibia
  • Power Construction (Pty) Ltd
  • ProFix Scaffolding (Pty) Ltd
  • PT RUC Cementation Indonesia
  • PTMax Solutions
  • Quanta Homes 2 Ltd
  • Quanta Homes 3 Ltd
  • Rail Technology Company Ltd
  • Ramutsa Rail CC
  • Raubex Building Group (Pty) Ltd
  • Raubex Construction Zimbabwe (Pvt) Ltd
  • Raubex Facility Management (Pty) Ltd
  • Raubex FIC (Pty) Ltd
  • Raubex Foreign Holdings (Pty) Ltd
  • Raubex Group Ltd
  • Raubex Infrastructure Holdings (Pty) Ltd
  • Raubex Lesotho (Pty) Ltd
  • Raubex Ltd
  • Raubex Pty Ltd
  • Raubex REI Holdings (Pty) Ltd
  • Raudev (Pty) Ltd
  • Red Rocket EPC (Pty) Ltd
  • Red Rocket O and M (Pty) Ltd
  • Ridgeway Construction (Pty) Ltd
  • Risk Technical Services (Pty) Ltd
  • Ro-Al Construction (Pty) Ltd
  • Robor Pipe Systems (Pty) Ltd
  • Rubicept (RF) (Pty) Ltd
  • RUCCEM LLC
  • Russells Ltd
  • S1 Vertical (Pty) Ltd
  • SA Scaffold Manufacturing (Pty) Ltd
  • SGB Uthungulu (Pty) Ltd
  • Sibakhulu Construction (Pty) Ltd
  • Siyanda Steel (Pty) Ltd
  • South African National Roads Agency SOC Ltd (The)
  • Southern Gas Constructors Ltd
  • Southern Palace Capital (Pty) Ltd
  • Soyuz (Pty) Ltd
  • Specitouch (Pty) Ltd
  • Spitzer Renewables (Pty) Ltd
  • Standard Electrical Company (2000) (Pty) Ltd (The)
  • Stefanutti Stocks Holdings Ltd
  • Suncoast JV
  • Supacrush (Pty) Ltd
  • TCM Developments (Pty) Ltd
  • Tecroveer (Pty) Ltd
  • Tecroveer Design and Supply (Pty) Ltd
  • Tecroveer Projects (Pty) Ltd
  • Tekfalt Binders (Pty) Ltd
  • thyssenkrupp Industrial Solutions (Mozambique) Ltda
  • Thyssenkrupp Industrial Solutions South Africa (Pty) Ltd
  • Tiber Construction (Pty) Ltd
  • Tisang Group (Pty) Ltd
  • Titan Renewables (Pty) Ltd
  • TN Molefe Construction (Pty) Ltd
  • Top Fix (Pty) Ltd
  • Trans-Africa Projects Ltd
  • Trencon Construction (Pty) Ltd
  • TRS Staffing Solutions (Pty) Ltd
  • Tshala Bese Uyavuna (RF) (Pty) Ltd
  • Turan Mining Contractors LLC
  • Umhlanga Arch JV
  • Umso Construction (Pty) Ltd
  • Vega Renewables (Pty) Ltd
  • Verlesha (Pty) Ltd
  • Viva Formwork and Scaffolding (Cape Town) (Pty) Ltd
  • Waco (Lesotho) Pty Ltd
  • Waco Africa (Pty) Ltd
  • Waco Ao Holdings Lda
  • Waterfall George (Pty) Ltd
  • WBHO Building Energy (Pty) Ltd
  • WBHO Burkina Faso Sarl
  • WBHO Construction UK Ltd
  • WBHO Guinea Construction Ltd
  • WBHO Guinea Projects Ltd
  • WBHO International Botswana Ltd
  • WBHO Tanzania Ltd
  • WBHO UK Ltd
  • WBHO/CCC JV
  • WBHO/Cebekhulu JV
  • WBHO/MBS JV
  • WBHO/Phayandani JV
  • WBHO/Prokhaya JV
  • WBHO/Tiber Discovery JV
  • Westforce Construction Pty Ltd
  • Westforce Hire Pty Ltd
  • Wilson Bayly Holmes-Ovcon Ltd
  • WK Construction (Pty) Ltd
  • WK Construction South Africa (Pty) Ltd
  • Wood South Africa (Pty) Ltd
  • Zambonetix (Pty) Ltd
  • Zwartebosch Quarry (Pty) Ltd

Methodology

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