Roy Cokayne
2 minute read
25 Sep 2020
8:33 am

Future of SA’s construction sector bleak

Roy Cokayne

The sector’s biggest problem is the implementation of infrastructure plans and programmes.

WBHO's Louwtjie Nel says opportunities exist for well-run mid-tier and emerging construction businesses to grow and fill the gap. Image: Moneyweb

South Africa’s construction sector is facing a prolonged downturn, in spite of the government’s planned massive infrastructure expenditure programme that aims to stimulate the economy post Covid-19. David Metelerkamp, senior economist at construction market intelligence firm Industry Insight, says the outlook remains dim, although there is hope for a marginal improvement in civil investment in the medium term. The SA Forum of Civil Engineering Contractors (Safcec) is “cautiously optimistic” about the industry’s prospects and Master Builders South Africa (MBSA) is “optimistic”. Both highlight several problematic issues, though. Metelerkamp is not optimistic. “As private sector sentiment continues to deteriorate, any recovery...