Construction Industry South Africa

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The Construction Industry in South Africa 2026

Stephen Timm | South Africa | 26 February 2026

The Construction Industry in South Africa 2024

Carole Veitch | South Africa | 14 December 2024

The Construction industry in South Africa 2022

Carole Veitch | South Africa | 16 August 2022

The Construction Industry in South Africa 2020

Carole Veitch | South Africa | 29 September 2020

The Construction Industry in South Africa 2019

Carole Veitch | South Africa | 16 July 2019

The Construction Industry in South Africa 2018

Carole Veitch | South Africa | 04 April 2018

The Construction Industry in South Africa 2017

Carole Veitch | South Africa | 12 December 2017

The Construction Industry in South Africa 2016

Carole Veitch | South Africa | 24 October 2016

The Construction Industry in South Africa 2015

Carole Veitch | South Africa | 30 September 2015

Report Coverage

This report on the construction industry in South Africa includes information on construction activity, public spending, plans passed and buildings completed, notable players and corporate actions. There is comprehensive information on sector-related trends and issues, including diversification, the decline in the number of large players, growth of Chinese companies in the sector, corruption, the construction mafia and public procurement. It includes profiles of 62 notable players including state companies such as Sanral, major players such as WBHO, Raubex, Stefanutti Stocks, Aveng and Concor, and support services companies such as Waco, SA Scaffold, Isowall and Kwikspace.

Introduction

• South Africa’s construction industry, whose contribution to the economy has declined for eight straight years, continued to decline in in 2025.
• There was an improvement in civil building confidence towards the end of the year.
• The sector may be turning around as the value of new projects announced in 2025 increased by 16.4%.
• Government implemented various reforms to unblock spending on infrastructure projects, but it is unclear how effective they will be.
• Government work has been badly affected by corruption.
• State authorities are attempting to tackle the corruption mafia which has disrupted and stalled many contracts.
• There are concerns about capacity constraints as several construction companies have closed down or gone into business rescue.
• A number of players are looking to increase their revenue from outside South Africa.

Trends

• Companies are looking to reduce the risk of operating in South Africa by increasing income in other countries.
• Government is carrying out various reforms to ensure an uptake of state infrastructure projects are by construction companies.
• Government is clamping down on unethical contractors by blacklisting them.
• Government is soliciting private investment in strategic infrastructure projects.
• Major Chinese construction companies have been awarded public sector infrastructure projects.
• Public spending on new construction has grown since 2022, but is still below 2016 levels.
• The industry has become more competitive as SMEs have increased their share of construction jobs and income.
• The industry remains under pressure, but confidence in the civil construction and building subsectors is improving.
• There is a growing focus on green building and sustainable construction practices.

Opportunities

• 3D printing of building materials and structures.
• Construction support services such as supplying scaffolding and formwork, locally and regionally.
• Private sector partnerships with government and its agencies on infrastructure projects.
• Projects focusing on sustainability and green building.
• Providing building management systems to improve energy and water efficiency.
• Urban renewal and the repurposing and conversion of vacant commercial and industrial buildings into affordable residential units.

Challenges

• Concerns over construction safety issues and regulatory compliance.
• Concerns over declining building standards.
• Corruption, irregular procurement practices, and the construction mafia are an ongoing threat.
• Late payment from government is a major issue for smaller contractors.
• The industry has been substantially weakened by a prolonged period of underinvestment, lower levels of government spending, procurement backlogs and delays in finalising public sector construction tenders.
• The shortage of experienced professionals with specialist skills has been exacerbated by the exodus of some of the largest construction companies.

Outlook

• Construction companies are cautiously optimistic that conditions are improving and that the sector could begin to grow again.
• Industry players cite private sector participation in key infrastructure spending as a positive development.
• There are pockets of recovery in private and public sector projects in infrastructure work, mining-related activity, renewables and grid-related work.
• The industry continues to face challenges.
• Analysts expect a recovery, with average annual growth of 2.9% between 2025 and 2028.

The Construction Industry in South Africa 2026

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The Construction Industry in South Africa 2024-12-14

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The Construction industry in South Africa 2022-08-16

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The Construction Industry in South Africa 2020-09-29

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The Construction Industry in South Africa 2019-07-16

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The Construction Industry in South Africa 2018-04-04

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The Construction Industry in South Africa 2017-12-12

R 1 900.00(ZAR) estimated $112.49 (USD)*

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The Construction Industry in South Africa 2016-10-24

R 1 900.00(ZAR) estimated $112.49 (USD)*

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The Construction Industry in South Africa 2015-09-30

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		PAGE
1.	INTRODUCTION	1
2.	DESCRIPTION OF THE INDUSTRY	1
2.1.	Industry Value Chain	5
2.2.	Geographic Position	7
2.3.	Size of the Industry	7
3.	LOCAL	9
3.1.	State of the Industry	9
3.2.	Key Trends	24
3.3.	Key Issues	24
3.4.	Notable Players	24
3.5.	Corporate Actions	27
3.6.	Regulations	29
3.7.	Enterprise Development and Social Development	31
4.	AFRICA	33
5.	INTERNATIONAL	34
6.	INFLUENCING FACTORS	36
6.1.	Economic Environment	36
6.2.	Labour	37
6.3.	Environmental Issues	40
6.4.	Technology, R&D, Innovation	42
6.5.	Government Support	42
6.6.	Input Costs	45
7.	COMPETITIVE ENVIRONMENT	46
7.1.	Competition	46
7.2.	Ownership Structure of the Industry	48
7.3.	Barriers to Entry	48
8.	INDUSTRY SUMMARY	49
9.	OUTLOOK	50
10.	INDUSTRY ASSOCIATIONS	50
11.	REFERENCES	50
11.1.	Publications	50
11.2.	Websites	54
	ANNEXURE 1	56
	Industry Legislation	56
	APPENDIX 1	63
	Summary of Notable Players	63
	COMPANY PROFILES	76
	ARNOTT PANELS (PTY) LTD	76
	AVENG LTD	78
	BILFINGER INTERVALVE AFRICA (PTY) LTD	82
	BLUHM BURTON ENGINEERING (PTY) LTD	84
	BOSCH PROJECTS (PTY) LTD	86
	CAPE SCAFFOLDING CONTRACTORS (PTY) LTD	88
	CATO RIDGE ELECTRICAL CONSTRUCTION (PTY) LTD	90
	CHINA COMMUNICATIONS CONSTRUCTION COMPANY LTD	92
	CHINA STATE CONSTRUCTION ENGINEERING CORPORATION LTD	96
	CIVILS 2000 (PTY) LTD	99
	COLAS AFRICA HOLDINGS (PTY) LTD	101
	CONCOR CONSTRUCTION (PTY) LTD	103
	CONSTRUCTION MAINTENANCE SERVICES (PTY) LTD	105
	DIABOR (PTY) LTD	106
	EDWIN CONSTRUCTION (PTY) LTD	108
	EHL ENGINEERING SERVICES (PTY) LTD	110
	ENZA CONSTRUCTION (PTY) LTD	111
	ESOR LTD	113
	EXR CONSTRUCTION (PTY) LTD	116
	FAIRBROTHER GEOTECHNICAL ENGINEERING (PTY) LTD	119
	FIKILE CONSTRUCTION (PTY) LTD	121
	FLUOR SOUTH AFRICA (PTY) LTD	123
	GEOMECHANICS (PTY) LTD	125
	GRINAKER-LTA (PTY) LTD	128
	GROUP FIVE CONSTRUCTION (PTY) LTD	130
	GVK SIYA ZAMA HOLDINGS (PTY) LTD	135
	H AND I GROUP (PTY) LTD	137
	HATCH AFRICA (PTY) LTD	139
	ISOWALL AUTOMOTIVE (PTY) LTD	141
	JOHANNESBURG SCAFFOLDING (PTY) LTD	143
	JOHNSON CONTROLS INTERNATIONAL (PTY) LTD	145
	KAEFER ENERGY PROJECTS (PTY) LTD	147
	KWIKSPACE MODULAR BUILDINGS (PTY) LTD	149
	LTA AUTECON (PTY) LTD	151
	MALINGA SCAFFOLDING AND FORMOWORK (PTY) LTD	153
	MAZOR GROUP (PTY) LTD	154
	MCE FABRICATION AND CONSTRUCTION (PTY) LTD	157
	MOTHEO CONSTRUCTION GROUP (PTY) LTD	159
	MURRAY AND ROBERTS LTD	161
	PERI FORMWORK SCAFFOLDING ENGINEERING (PTY) LTD	164
	PEZULA ACCESS SCAFFOLDING (PTY) LTD	166
	POWER CONSTRUCTION (PTY) LTD	167
	RAMUTSA SA (PTY) LTD	170
	RAUBEX GROUP LTD	171
	RO-AL CONSTRUCTION (PTY) LTD	175
	SA SCAFFOLD MANUFACTURING (PTY) LTD	177
	SOUTH AFRICAN NATIONAL ROADS AGENCY SOC LTD (THE)	179
	STEFANUTTI STOCKS HOLDINGS LTD	182
	TCM DEVELOPMENTS (PTY) LTD	186
	TIBER CONSTRUCTION (PTY) LTD	188
	TISANG GROUP (PTY) LTD	190
	TN MOLEFE CONSTRUCTION (PTY) LTD	192
	TOP FIX (PTY) LTD	194
	TRENCON CONSTRUCTION (PTY) LTD	196
	UMSO CONSTRUCTION (PTY) LTD	198
	VIVA FORMWORK AND SCAFFOLDING (CAPE TOWN) (PTY) LTD	200
	WACO AFRICA (PTY) LTD	202
	WILSON BAYLY HOLMES-OVCON LTD	206
	WK CONSTRUCTION (PTY) LTD	211
	WK CONSTRUCTION SOUTH AFRICA (PTY) LTD	213
	WOOD SOUTH AFRICA (PTY) LTD	215
	ZUTARI (PTY) LTD	217

Report Coverage

This report on the construction industry in South Africa includes information on the industry’s economic contribution, construction activity, the number of contractors, investment by sector and relevant growth indicators and indices. It includes information on notable companies, corporate actions, the latest developments, and public and private sector projects. There are profiles of 61 companies including large construction companies such as Aveng, Raubex and Stefanutti stocks, engineering, consulting and services companies including Haw & Inglis, TCM Developments and Waco, and major Chinese construction companies such as China Communications Construction and China State Construction Engineering.

Introduction

• South Africa’s construction industry has been under pressure for more than a decade.
• Several civil engineering and construction companies have gone out of business, and others are in business rescue, or have sold their local businesses and diversified.
• In real terms, the industry’s contribution to the economy in 2023 was 35% lower than in 2016.
• Construction activity rebounded in the second half of 2024.
• Although the public sector infrastructure project pipeline has improved, many industry players no longer have the capacity to undertake large-scale projects.
• This has provided an opening for major Chinese construction companies to gain a foothold in the domestic market.

Trends

• Government is soliciting private investment in strategic infrastructure projects.
• Major Chinese construction companies have been awarded public sector infrastructure projects and are expected to play an increasingly prominent role in the industry.
• The high interest rate environment continues to constrain residential building activity.
• The industry remains under pressure, but confidence in the civil construction and building subsectors is improving.
• There is a focus on energy-related projects, particularly renewable energy.
• There is a growing focus on sustainable construction practices such as energy and water efficiency, and the need for climate-resilient infrastructure.

Opportunities

• 3D printing of building materials and structures.
• Construction support services such as the supply of scaffolding and formwork, locally and regionally.
• Projects focusing on sustainability and green building, including off-grid living.
• Providing building management systems to improve energy and water efficiency.
• The supply of prefabricated modular structures for mining operations, residential use, schools and healthcare facilities.
• There are opportunities for the private sector to partner with the government and its agencies on infrastructure projects.
• Urban renewal and the repurposing and conversion of vacant commercial and industrial buildings into affordable residential units.

Challenges

• Concerns over construction safety issues and regulatory compliance.
• Corruption, irregular procurement practices, and the construction mafia are an ongoing threat.
• High interest rates continue to constrain growth in the residential building industry.
• The industry has been substantially weakened by a prolonged period of underinvestment, lower levels of government spending, procurement backlogs and delays in finalising public sector construction tenders.
• The shortage of experienced professionals with specialist skills has been exacerbated by the exodus of some of the largest construction companies.

Outlook

• Public sector infrastructure spending is expected to increase.
• With public sector project pipelines improving, construction activity is expected to grow.
• Private sector investment is growing, with the value of new projects more than doubling in 2024.
• Lower interest rates could boost residential building.
• The industry continues to be held to ransom by the construction mafia.
• A growing challenge is the presence of China’s major construction companies, which are set to become formidable competitors in public infrastructure.

The Construction Industry in South Africa 2024

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R 9 500.00(ZAR) estimated $562.44 (USD)*

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Industry Landscape

R 6 650.00(ZAR) estimated $ 393.71 (USD)*

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Historical Reports

The Construction Industry in South Africa 2026-02-26

R 20 000.00(ZAR) estimated $1184.08 (USD)*

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The Construction industry in South Africa 2022-08-16

R 1 900.00(ZAR) estimated $112.49 (USD)*

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The Construction Industry in South Africa 2020-09-29

R 1 900.00(ZAR) estimated $112.49 (USD)*

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The Construction Industry in South Africa 2019-07-16

R 1 900.00(ZAR) estimated $112.49 (USD)*

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The Construction Industry in South Africa 2018-04-04

R 1 900.00(ZAR) estimated $112.49 (USD)*

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The Construction Industry in South Africa 2017-12-12

R 1 900.00(ZAR) estimated $112.49 (USD)*

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The Construction Industry in South Africa 2016-10-24

R 1 900.00(ZAR) estimated $112.49 (USD)*

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The Construction Industry in South Africa 2015-09-30

R 1 900.00(ZAR) estimated $112.49 (USD)*

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[ Close ]

		PAGE
1.	INTRODUCTION	1
2.	DESCRIPTION OF THE INDUSTRY	1
2.1.	Industry Value Chain	5
2.2.	Geographic Position	7
2.3.	Size of the Industry	9
3.	LOCAL	11
3.1.	State of the Industry	11
3.2.	Key Trends	23
3.3.	Key Issues	24
3.4.	Notable Players	24
3.5.	Corporate Actions	28
3.6.	Regulations	29
3.7.	Enterprise Development and Social Development	32
4.	AFRICA	35
5.	INTERNATIONAL	39
6.	INFLUENCING FACTORS	41
6.1.	Unforeseen Events	41
6.2.	Economic Environment	41
6.3.	Labour	43
6.4.	Environmental Issues	45
6.5.	Technology, R&D, Innovation	47
6.6.	Government Support	49
6.7.	Input Costs	50
7.	COMPETITIVE ENVIRONMENT	51
7.1.	Competition	51
7.2.	Ownership Structure of the Industry	52
7.3.	Barriers to Entry	53
8.	INDUSTRY SUMMARY	53
9.	OUTLOOK	54
10.	INDUSTRY ASSOCIATIONS	55
11.	REFERENCES	55
11.1.	Publications	55
11.2.	Websites	53
	Annexure 1	55
	Industry Legislation	55
	Appendix 1	62
	Summary of Notable Players	62
	COMPANY PROFILES	84
	ARNOTT PANELS (PTY) LTD	84
	AVENG LTD	86
	AXSYS PROJECTS (PTY) LTD	91
	BILFINGER INTERVALVE AFRICA (PTY) LTD	92
	BLUHM BURTON ENGINEERING (PTY) LTD	94
	BOSCH PROJECTS (PTY) LTD	96
	CAPE SCAFFOLDING CONTRACTORS (PTY) LTD	98
	CATO RIDGE ELECTRICAL CONSTRUCTION (PTY) LTD	99
	CHINA COMMUNICATIONS CONSTRUCTION COMPANY LTD	101
	CHINA STATE CONSTRUCTION ENGINEERING CORPORATION LTD	105
	COLAS AFRICA HOLDINGS (PTY) LTD	108
	CONCOR CONSTRUCTION (PTY) LTD	110
	CONSTRUCTION MAINTENANCE SERVICES (PTY) LTD	113
	DIABOR (PTY) LTD	115
	EDWIN CONSTRUCTION (PTY) LTD	117
	ENZA CONSTRUCTION (PTY) LTD	119
	ESOR LTD	121
	EXR CONSTRUCTION (PTY) LTD	124
	FAIRBROTHER GEOTECHNICAL ENGINEERING (PTY) LTD	127
	FIKILE CONSTRUCTION (PTY) LTD	129
	FLUOR SOUTH AFRICA (PTY) LTD	131
	GEOMECHANICS (PTY) LTD	133
	GRINAKER-LTA CIVIL ENGINEERING (PTY) LTD	136
	GROUP FIVE CONSTRUCTION (PTY) LTD	138
	GVK-SIYA ZAMA BUILDING CONTRACTORS (PTY) LTD	143
	HATCH AFRICA (PTY) LTD	144
	HAW AND INGLIS CIVIL ENGINEERING (PTY) LTD	146
	ISOWALL AUTOMOTIVE (PTY) LTD	149
	JOHANNESBURG SCAFFOLDING (PTY) LTD	151
	JOHNSON CONTROLS INTERNATIONAL (PTY) LTD	153
	KAEFER ENERGY PROJECTS (PTY) LTD	155
	KWIKSPACE MODULAR BUILDINGS (PTY) LTD	157
	LTA AUTECON (PTY) LTD	159
	MALINGA SCAFFOLDING AND FORMOWORK (PTY) LTD	160
	MAZOR GROUP (PTY) LTD	161
	MCE FABRICATION AND CONSTRUCTION (PTY) LTD	164
	MOTHEO CONSTRUCTION GROUP (PTY) LTD	166
	MURRAY AND ROBERTS HOLDINGS LTD	168
	PERI FORMWORK SCAFFOLDING ENGINEERING (PTY) LTD	172
	PEZULA ACCESS SCAFFOLDING (PTY) LTD	174
	POWER CONSTRUCTION (PTY) LTD	175
	RAMUTSA SA (PTY) LTD	178
	RAUBEX GROUP LTD	179
	RO-AL CONSTRUCTION (PTY) LTD	183
	SA SCAFFOLD MANUFACTURING (PTY) LTD	185
	SOUTH AFRICAN NATIONAL ROADS AGENCY SOC LTD (THE)	186
	STEFANUTTI STOCKS HOLDINGS LTD	189
	TCM DEVELOPMENTS (PTY) LTD	194
	TIBER CONSTRUCTION (PTY) LTD	196
	TISANG GROUP (PTY) LTD	198
	TN MOLEFE CONSTRUCTION (PTY) LTD	200
	TOP FIX (PTY) LTD	202
	TRENCON CONSTRUCTION (PTY) LTD	205
	UMSO CONSTRUCTION (PTY) LTD	207
	VIVA FORMWORK AND SCAFFOLDING (CAPE TOWN) (PTY) LTD	209
	WACO AFRICA (PTY) LTD	211
	WILSON BAYLY HOLMES-OVCON LTD	215
	WK CONSTRUCTION (PTY) LTD	220
	WK CONSTRUCTION SOUTH AFRICA (PTY) LTD	222
	WOOD SOUTH AFRICA (PTY) LTD	224
	ZUTARI (PTY) LTD	226

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.

Introduction

• The construction sector contributed R141bn in gross value added, or 2.7% of GDP, in 2021,
• The largest contributor to gross fixed capital formation was construction works/civil engineering, followed by residential buildings and non-residential buildings.
• Although there are still headwinds, role players say there are “green shoots in the form of shovel-ready projects”.
• Industry players welcomed government’s February 2022 announcement of infrastructure investment of more than R810bn over the next three years, but said rapid implementation is critical as the industry cannot afford further delays.

Strengths

• Barriers to entry for small and micro-sized companies are low.
• Construction is a key driver of socio-economic development.
• Government has prioritised the development of SMEs and companies owned by historically disadvantaged people.
• The construction industry is a strategic sector serving all sectors of the economy.
• The industry is one of the country’s largest creators of employment.
• There is a relatively high level of innovation.
• There is a strong culture of small business development.

Weaknesses

• Construction sites are inherently hazardous workplaces.
• Contracts undertaken by smaller contractors are often poorly executed, project delays are common and quality control is often substandard.
• Corruption is endemic.
• Profit margins are narrow and projects are commonly over budget.
• The industry is male-dominated, there is a shortage of skilled labour and it is often difficult to retain professionals with specialist skills.
• There is a high level of reliance on the public sector for large projects.
• There is generally a low level of regulatory compliance.

Opportunities

• 3D printing of building materials and structures.
• Government has prioritised infrastructure development and is aiming to attract higher levels of private sector investment.
• Projects focusing on sustainability and green building, including off-the-grid living.
• The creation of micro-living solutions.
• The development of affordable housing.
• The development of drone services for the autonomous handling of materials on construction sites.
• The development of smart cities.
• The rollout of infrastructure development projects in South Africa, on the African continent and in other regions.
• The supply of modular structures for low-cost housing, healthcare facilities, etc.
• Urban renewal and the repurposing and conversion of vacant commercial and industrial buildings into residential units.

Threats

• Climate change-related shocks, notably floods, coastal surges, rising sea levels, wildfires and droughts.
• Economic pressures, rising inflation and variables such as exchange rate fluctuations and the volatility of raw material prices.
• Policy uncertainty on land expropriation and land restitution.
• The impact of the Russia-Ukraine war on global security, energy prices and food security.
• The pandemic presents an ongoing risk, with the threat of new variants and the continued disruption of global supply chains.
• The threat of political instability and further eruptions of civil unrest.

Selected Highlights

Backward integration
• Whilst it is general practice for construction companies to focus on its core business, it does make sense for some companies to backwardly integrate into their respective value chains, especially as it relates to critical raw materials (e.g. re-enforcing steel products)
Internationalisation
• Construction companies tend to increase their footprint globally (Africa and the Rest of the World) in order to take advantage of growth opportunities elsewhere, to reduce their dependency on local markets (especially if local markets are small and growth is pedestrian), to reduce concentration (diversification) and to earn hard currency.
Rightsizing labour
• It is crucial for construction companies to increase and decrease their labour force in line with their output. Not doing so, can materially hurt the company financially. Most companies would therefore only employee workers on the basis of a firm order book (in addition to its core staff and management)
Upskilling the work force
• The number of projects across building and civil engineering are not always synchronised. It is therefore important to upskill workers within these broad disciplines to such a level that they can be interchangeable between these two lines of business. Worker shortages in civil projects can be augmented by surpluses in building projects, and vice versa

Outlook

• Floods and droughts have highlighted the importance of sustainable infrastructure development and the need for weather-resilient buildings.
• Cabinet’s approval of the National Infrastructure Plan 2050 in March 2022 provides a long-term road-map for infrastructure development.
• Local construction activity is gradually recovering, project pipelines are stabilising and there are opportunities in the energy sector, specifically in renewables.
• Domestic market conditions remain extremely challenging.
• Given the sector’s weak growth prospects, large players are expected to continue to pursue opportunities in high growth African markets and other regions.

The Construction industry in South Africa 2022

Full Report

R 1 900.00(ZAR) estimated $112.49 (USD)*

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Industry Landscape

R 1 330.00(ZAR) estimated $ 78.74 (USD)*

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Historical Reports

The Construction Industry in South Africa 2026-02-26

R 20 000.00(ZAR) estimated $1184.08 (USD)*

View Report Add to Cart

The Construction Industry in South Africa 2024-12-14

R 9 500.00(ZAR) estimated $562.44 (USD)*

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The Construction Industry in South Africa 2020-09-29

R 1 900.00(ZAR) estimated $112.49 (USD)*

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The Construction Industry in South Africa 2019-07-16

R 1 900.00(ZAR) estimated $112.49 (USD)*

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The Construction Industry in South Africa 2018-04-04

R 1 900.00(ZAR) estimated $112.49 (USD)*

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The Construction Industry in South Africa 2017-12-12

R 1 900.00(ZAR) estimated $112.49 (USD)*

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The Construction Industry in South Africa 2016-10-24

R 1 900.00(ZAR) estimated $112.49 (USD)*

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The Construction Industry in South Africa 2015-09-30

R 1 900.00(ZAR) estimated $112.49 (USD)*

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[ Close ]

		PAGE
1.	INTRODUCTION	1
2.	DESCRIPTION OF THE INDUSTRY	1
2.1.	Industry Value Chain	6
2.2.	Geographic Position	8
2.3.	Size of the Industry	9
2.4.	Key Success Factors and Pain Points	13
3.	LOCAL	14
3.1.	State of the Industry	14
3.2.	Key Trends	22
3.3.	Notable Players	23
3.4.	Corporate Actions	26
3.5.	Regulations	27
3.6.	Enterprise Development and Social Economic Development	31
4.	AFRICA	34
5.	INTERNATIONAL	39
6.	INFLUENCING FACTORS	42
6.1.	COVID-19	42
6.2.	Economic Environment	43
6.3.	Environmental Issues	45
6.4.	Labour	47
6.5.	Technology, Research and Development (R&D) and Innovation	53
6.6.	Government Support and Investment	55
6.7.	Input Costs	57
7.	COMPETITIVE ENVIRONMENT	59
7.1.	Ownership Structure of the Industry	61
7.2.	Barriers to Entry	61
8.	SWOT ANALYSIS	62
9.	OUTLOOK	63
10.	INDUSTRY ASSOCIATIONS & ORGANISATIONS	63
11.	REFERENCES	64
11.1.	Publications	64
11.2.	Websites	66
	APPENDIX 1	67
	Summary of Notable Players	67
	COMPANY PROFILES	86
	Arnott Panels (Pty) Ltd	87
	Axsys Projects (Pty) Ltd	89
	Basil Read Holdings Ltd	90
	Bilfinger Intervalve Africa (Pty) Ltd	94
	Bluhm Burton Engineering (Pty) Ltd	96
	Bosch Projects (Pty) Ltd	98
	Cape Scaffolding Contractors (Pty) Ltd	100
	Cato Ridge Electrical Construction (Pty) Ltd	102
	Colas Africa Holdings (Pty) Ltd	104
	Concor Construction (Pty) Ltd	106
	Construction Maintenance Services (Pty) Ltd	109
	Diabor (Pty) Ltd	111
	Edwin Construction (Pty) Ltd	113
	Enza Construction (Pty) Ltd	115
	Esor Ltd	117
	EXR Construction (Pty) Ltd	120
	Fairbrother Geotechnical Engineering (Pty) Ltd	123
	Fikile Construction (Pty) Ltd	125
	Fluor South Africa (Pty) Ltd	127
	Geomechanics (Pty) Ltd	129
	Grinaker LTA (Pty) Ltd	132
	Group Five Construction (Pty) Ltd	135
	Hatch Africa (Pty) Ltd	140
	Haw and Inglis Civil Engineering (Pty) Ltd	143
	Isowall Southern Africa (Pty) Ltd	146
	Johannesburg Scaffolding (Pty) Ltd	148
	Johnson Controls International (Pty) Ltd	150
	Kaefer Energy Projects (Pty) Ltd	152
	Kwikspace Modular Buildings (Pty) Ltd	154
	M C E Fabrication and Construction (Pty) Ltd	156
	Malinga Scaffolding and Formowork (Pty) Ltd	158
	Mazor Group (Pty) Ltd	160
	Motheo Construction Group (Pty) Ltd	163
	Pezula Access Scaffolding (Pty) Ltd	165
	Power Construction (Pty) Ltd	166
	ProFix Scaffolding (Pty) Ltd	169
	Ramutsa Rail CC	171
	Raubex Group Ltd	173
	Ro-Al Construction (Pty) Ltd	178
	SA Scaffold Manufacturing (Pty) Ltd	180
	South African National Roads Agency SOC Ltd (The)	182
	Stefanutti Stocks Holdings Ltd	185
	TCM Developments (Pty) Ltd	189
	Tiber Construction (Pty) Ltd	191
	Tisang Group (Pty) Ltd	193
	TN Molefe Construction (Pty) Ltd	195
	Top Fix (Pty) Ltd	197
	Trencon Construction (Pty) Ltd	199
	Umso Construction (Pty) Ltd	201
	Viva Formwork and Scaffolding (Cape Town) (Pty) Ltd	203
	Waco Africa (Pty) Ltd	205
	Wilson Bayly Holmes-Ovcon Ltd	209
	WK Construction (Pty) Ltd	214
	WK Construction South Africa (Pty) Ltd	216
	Wood South Africa (Pty) Ltd	218

Report Coverage

This report focuses on the construction industry in South Africa and includes comprehensive information on the state and size of the sector, developments, corporate actions and influencing factors. There are profiles of 58 companies that include major JSE-listed players such as Murray & Roberts, Wilson Bayly Holmes-Ovcon and Raubex. Other profiled companies include Concor, formerly Murray & Roberts Construction, owned by a consortium led by the Southern Palace Group, Calgro M3, which is involved in affordable housing and memorial parks markets and Isowall, the largest producer of structural insulated panels in South Africa.

Introduction

The South African construction sector contributed over R427.3bn to gross fixed capital formation in construction (GFCFC) in 2019. The industry is a driver of socio-economic development and a key employment multiplier, yet despite its strategic importance, infrastructure expenditure has declined and a number of public sector projects have been mothballed over the past decade, leaving it substantially weakened. With the coronavirus crisis having dealt a crushing blow to an industry already in distress, role players warn that thousands of jobs in the construction sector and its value chain are at risk. As part of its plan to revive an economy devastated by the coronavirus pandemic, the South African government has announced a massive infrastructure development programme. Stakeholders say that urgent implementation is critical if the economy and the construction sector are to recover.

Strengths

Weaknesses

• Construction sites are inherently hazardous workplaces.
• Contracts are often poorly executed, project delays are common and quality control is often substandard, particularly amongst smaller contractors.
• Corruption is pervasive.
• Profit margins are narrow and projects are commonly over budget.
• The industry is male-dominated, there is a shortage of skilled labour and it is often difficult to retain professionals with specialist skills.
• There is a high level of reliance on the public-sector.
• There is generally a low level of regulatory compliance.

Opportunities

• 3D printing of building materials and structures.
• Green building systems offer growth opportunities.
• The creation of micro-living solutions.
• The development of affordable housing.
• The development of drone services for the autonomous handling of materials on construction sites.
• The rollout of infrastructure development projects in South Africa, on the African continent and offshore.
• The supply of modular structures for low-cost housing, healthcare facilities, etc.
• Urban renewal and the repurposing and conversion of vacant commercial and industrial buildings into residential units and healthcare facilities.

Threats

• Delayed implementation of large projects and/or the failure to implement proposed public sector infrastructure development projects.
• Domestic and global economic recessionary pressures.
• Escalation in geopolitical tensions.
• Exchange rate volatility.
• Funding shortfalls, non-payment or tardy settlement by government departments.
• Land invasions, illegal occupation of building sites and violent disruption of construction works.
• Uncertainty relating to the implementation of the land expropriation without compensation policy.
• Workforce health and safety risks, project delays, contract cancellations and supply chain disruptions relating to the coronavirus pandemic.

Outlook

The impact of the coronavirus pandemic has highlighted the urgent need to provide affordable housing and improve the delivery of basic services to vulnerable communities. Stakeholders have welcomed the South African government’s increased focus on infrastructure development as part of its post-pandemic economic recovery plan. Master Builders South Africa executive director Roy Mnisi has welcomed the gazetting of the initial tranche of strategic infrastructure projects, but has expressed concern that local authorities could hinder their implementation, as has occurred in the past. Mnisi said that the association and its members were “ready and available to help government roll out these projects.” With 50 “shovel-ready” projects set to break ground in the spring, local contractors are cautiously optimistic that the beleaguered construction industry’s fortunes could be turning.

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		PAGE
1.	INTRODUCTION	1
2.	DESCRIPTION OF THE INDUSTRY	1
2.1.	Industry Value Chain	6
2.2.	Geographic Position	7
3.	SIZE OF THE INDUSTRY	8
4.	STATE OF THE INDUSTRY	11
4.1.	Local	11
4.1.1.	Corporate Actions	15
4.1.2.	Regulations	16
4.1.3.	Enterprise Development and Social Economic Development	20
4.2.	Continental	23
4.3.	International	28
5.	INFLUENCING FACTORS	30
5.1.	Coronavirus	30
5.2.	Economic Environment	32
5.3.	Government Support and Public Infrastructure Expenditure	33
5.4.	Corruption	34
5.5.	Rising Input Costs	35
5.6.	Environmental Concerns	35
5.7.	Labour	37
5.8.	Cyclicality	42
5.9.	Technology, Research and Development (R&D) and Innovation	42
6.	COMPETITION	44
6.1.	Barriers to Entry	45
7.	SWOT ANALYSIS	46
8.	OUTLOOK	47
9.	INDUSTRY ASSOCIATIONS	48
10.	REFERENCES	48
10.1.	Publications	48
10.2.	Websites	49
	APPENDIX 1	51
	Summary of Notable players	51
	COMPANY PROFILES	67
	ARNOTT PANELS (PTY) LTD	67
	AVENG LTD	69
	AXSYS PROJECTS (PTY) LTD	74
	BASIL READ HOLDINGS LTD	75
	BILFINGER INTERVALVE AFRICA (PTY) LTD	79
	BLUHM BURTON ENGINEERING (PTY) LTD	81
	BOSCH PROJECTS (PTY) LTD	83
	CALGRO M3 HOLDINGS LTD	85
	CAPE SCAFFOLDING CONTRACTORS (PTY) LTD	90
	CATO RIDGE ELECTRICAL CONSTRUCTION (PTY) LTD	92
	COLAS AFRICA HOLDINGS (PTY) LTD	94
	CONCOR CONSTRUCTION (PTY) LTD	96
	CONSTRUCTION MAINTENANCE SERVICES (PTY) LTD	99
	DIABOR (PTY) LTD	101
	EDWIN CONSTRUCTION (PTY) LTD	103
	ENZA CONSTRUCTION (PTY) LTD	105
	ESOR LTD	107
	EXR CONSTRUCTION (PTY) LTD	110
	FAIRBROTHER GEOTECHNICAL ENGINEERING (PTY) LTD	113
	FIKILE CONSTRUCTION (PTY) LTD	115
	FLUOR SOUTH AFRICA (PTY) LTD	117
	GAUTENG PILING (PTY) LTD	119
	GEOMECHANICS (PTY) LTD	121
	GIURICICH BROS CONSTRUCTION (PTY) LTD	123
	GROUP FIVE CONSTRUCTION (PTY) LTD	125
	HATCH AFRICA (PTY) LTD	130
	HAW AND INGLIS CIVIL ENGINEERING (PTY) LTD	133
	INTASTOR CONTROLLED ENVIRONMENTS (PTY) LTD	135
	ISOWALL SOUTHERN AFRICA (PTY) LTD	137
	KAEFER ENERGY PROJECTS (PTY) LTD	139
	LAKESHORE TRADING 102 CC	141
	M C E FABRICATION AND CONSTRUCTION (PTY) LTD	142
	MALINGA SCAFFOLDING AND FORMOWORK (PTY) LTD	144
	MAZOR GROUP LTD	145
	MOTHEO CONSTRUCTION GROUP (PTY) LTD	148
	MURRAY AND ROBERTS HOLDINGS LTD	150
	POWER CONSTRUCTION (PTY) LTD	154
	PRO FIX ROBOR (PTY) LTD	156
	RAMUTSA RAIL CC	158
	RATEHANG PROJECTS CC	160
	RAUBEX GROUP LTD	162
	RO-AL CONSTRUCTION (PTY) LTD	167
	SA SCAFFOLD MANUFACTURING (PTY) LTD	169
	SOUTH AFRICAN NATIONAL ROADS AGENCY SOC LTD (THE)	171
	STEFANUTTI STOCKS HOLDINGS LTD	174
	TCM DEVELOPMENTS (PTY) LTD	179
	TIBER CONSTRUCTION (PTY) LTD	181
	TISANG GROUP (PTY) LTD	183
	TN MOLEFE CONSTRUCTION (PTY) LTD	185
	TOP FIX (PTY) LTD	187
	TRENCON CONSTRUCTION (PTY) LTD	189
	UMSO CONSTRUCTION (PTY) LTD	191
	VIVA FORMWORK AND SCAFFOLDING (CAPE TOWN) (PTY) LTD	193
	VNA PILING CC	195
	WACO AFRICA (PTY) LTD	197
	WILSON BAYLY HOLMES-OVCON LTD	201
	WK CONSTRUCTION (PTY) LTD	206
	WK CONSTRUCTION SOUTH AFRICA (PTY) LTD	208
	WOOD SOUTH AFRICA (PTY) LTD	210

Report Coverage

This report covers the South African Construction Industry including structural insulated panel systems, scaffolding and building management systems. This report includes comprehensive information on the size and state of the industry, the factors influencing it and corporate actions and business, regulatory, continental and international updates and information. There are 69 company profiles including of Wilson Bayly Holmes-Ovcon, the largest South African construction and engineering company listed on the JSE and other listed companies such as Murray & Roberts, Raubex, Calgro M3, Stefanutti Stocks and Aveng. It includes profiles on companies in business rescue such as Group Five, Basil Read and Esor and public entities such as the South African National Roads Agency.

Introduction

The South African construction industry serves all sectors of the economy and is a key driver of socio-economic development. With total nominal expenditure on construction works and related activities amounting to more than R430.2bn in 2018, the sector is of great strategic importance to the country. However, the protracted economic downturn and reduced levels of public infrastructure investment have exacted a heavy toll on contractors, including most of the industry’s major players, compelling some to focus on different markets and others to file for business rescue. Stakeholders warn that the decline of the industry has been exacerbated by the marked increase in land invasions, acts of violence and extortionist activity on construction sites across the country. With construction output in decline, Statistics South Africa (Stats SA) reports that the construction sector shed around 142,000 jobs in the first quarter of 2019. Moreover, with the advent of the fourth industrial revolution and the development of technologies that make ‘smart’ buildings even more ‘intelligent', some commentators say that South Africa’s construction industry is experiencing unprecedented disruption.

Strengths

• Barriers to entry for small and micro-sized companies are low.
• Government has prioritised the development of SMMEs and contracting firms owned by historically disadvantaged people.
• The construction industry is viewed as a strategic sector as it serves all sectors of the economy.
• The industry is one of the country’s largest sources of employment.
• There is a relatively high level of innovation.
• There is a strong culture of small business development.

Weaknesses

• Construction is a high impact industry and construction sites are inherently hazardous workplaces.
• Contracts are often poorly executed, project delays are common and quality control is often substandard, particularly amongst smaller contractors.
• Corruption and tender fraud are not uncommon in the industry.
• Profit margins are narrow and projects are commonly over budget.
• The industry is male-dominated, there is a shortage of skilled labour, and retaining professionals with specialist skills is a challenge.
• There is a high level of reliance on the public-sector.
• There is generally a low level of regulatory compliance.

Opportunities

• Implementation of sustainable, green building techniques.
• Provision of technologies that offer 3D modelling and/or 3D video tours of construction sites and/or AI technologies that facilitate project visualisation and modelling.
• The creation of micro-living solutions.
• The development of drone services for the autonomous handling of materials on construction sites.
• The integration of data analytics in building management systems.
• The roll-out of infrastructure development projects in South Africa, on the African continent and offshore.
• The supply of modular structures in response to market demand for low-cost housing and energy efficiency.
• With the advent of the fourth industrial revolution, there is growing demand for ‘intelligent’ buildings and ‘smart’ cities.

Threats

• Commodity price volatility.
• Delayed implementation of large projects and/or the failure to implement proposed public sector infrastructure development projects.
• Domestic and global macroeconomic pressures.
• Escalation in geopolitical tensions.
• Exchange rate volatility.
• Funding shortfalls, non-payment or tardy settlement by government departments.
• Industrial instability, social upheaval, community protests and violent disruption on construction sites.
• Land invasions and illegal occupation of building sites.
• The increase in input costs resulting from the on-going trade war between the US and China.
• Uncertainty over policies such as land expropriation without compensation, which could deter investors.

Outlook

Although Fitch forecasts that the South African construction sector will grow by 2.4% in 2019, extremely challenging trading conditions are expected to persist into 2020. The low-growth environment is likely to impede the recovery of the construction industry’s financially distressed companies. However, many stakeholders are optimistic that the transformation of the construction sector will gather momentum under the new government administration and that emerging contractors will play a more prominent role in the rebuilding of South Africa. With smart cities on the rise, demand for building management systems is expected to increase. Following the recent appointment of Patricia De Lille as minister of Public Works and Infrastructure, some role players say that there could be a significant shift in the fortunes of the sector if the opposition politician follows through on her election campaign promise to fast-track land restitution by releasing state-owned properties for development. As the custodian of almost two million hectares of state-owned land and over 90,000 public buildings, De Lille is poised to perform a pivotal role in the long-awaited roll-out of public infrastructure projects and the spatial transformation of South African cities.

The Construction Industry in South Africa 2019

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		PAGE
1.	INTRODUCTION	1
2.	DESCRIPTION	1
2.1.	Value Chain	6
2.2.	Geographic Position	7
3.	SIZE OF THE INDUSTRY	8
4.	STATE OF THE INDUSTRY	10
4.1.	Local	10
4.1.1.	Corporate Actions	16
4.1.2.	Regulations	18
4.1.3.	Enterprise Development and Socio-Economic Development	21
4.2.	Continental	25
4.3.	International	30
5.	KEY INFLUENCING FACTORS	32
5.1.	Economic Environment	32
5.2.	Government Initiatives and Public Infrastructure Expenditure	33
5.3.	Rising Input Costs	34
5.4.	Labour	35
5.5.	Corruption	38
5.6.	Cyclicality	38
5.7.	Technology, Research and Development (R&D) and Innovation	39
5.8.	Environmental Concerns	42
5.9.	Health and Safety Concerns	44
5.10.	The Supply and Quality of Building Materials	44
6.	COMPETITION	45
6.1.	Barriers to Entry	46
7.	SWOT ANALYSIS	46
8.	OUTLOOK	48
9.	INDUSTRY ASSOCIATIONS	48
10.	REFERENCES	49
10.1.	Publications	49
10.2.	Websites	50
	APPENDIX 1	52
	Summary of Notable Players	52
	COMPANY PROFILES	69
	ARNOTT PANELS (PTY) LTD	69
	AVENG LTD	71
	AXSYS PROJECTS (PTY) LTD	75
	BASIL READ HOLDINGS LTD	77
	BILFINGER INTERVALVE AFRICA (PTY) LTD	81
	BLUHM BURTON ENGINEERING (PTY) LTD	83
	BOSCH PROJECTS (PTY) LTD	85
	CALGRO M3 HOLDINGS LTD	87
	CAPE SCAFFOLDING CONTRACTORS (PTY) LTD	92
	CATO RIDGE ELECTRICAL CONSTRUCTION (PTY) LTD	94
	COLAS AFRICA HOLDINGS (PTY) LTD	97
	CONCOR CONSTRUCTION (PTY) LTD	99
	CONSTRUCTION MAINTENANCE SERVICES (PTY) LTD	102
	DIABOR (PTY) LTD	104
	EDWIN CONSTRUCTION (PTY) LTD	106
	ENZA CONSTRUCTION (PTY) LTD	108
	ESOR LTD	110
	EXR CONSTRUCTION (PTY) LTD	113
	FAIRBROTHER GEOTECHNICAL ENGINEERING (PTY) LTD	116
	FIKILE CONSTRUCTION (PTY) LTD	118
	FLUOR SOUTH AFRICA (PTY) LTD	120
	GAUTENG PILING (PTY) LTD	122
	GEOMECHANICS (PTY) LTD	124
	GIURICICH BROS CONSTRUCTION (PTY) LTD	126
	GROUP FIVE CONSTRUCTION (PTY) LTD	128
	HATCH AFRICA (PTY) LTD	134
	HAW AND INGLIS CIVIL ENGINEERING (PTY) LTD	137
	INTASTOR CONTROLLED ENVIRONMENTS (PTY) LTD	140
	ISOWALL SOUTHERN AFRICA (PTY) LTD	142
	KAEFER ENERGY PROJECTS (PTY) LTD	144
	KUNTWELA ENZANSI VENTURES (PTY) LTD	146
	LAKESHORE TRADING 102 CC	148
	M C E FABRICATION AND CONSTRUCTION (PTY) LTD	149
	MALINGA SCAFFOLDING AND FORMOWORK (PTY) LTD	151
	MAZOR GROUP LTD	153
	MOTHEO CONSTRUCTION GROUP (PTY) LTD	156
	MURRAY AND ROBERTS HOLDINGS LTD	158
	POWER CONSTRUCTION (PTY) LTD	162
	PRO FIX ROBOR (PTY) LTD	164
	RAMUTSA RAIL CC	166
	RATEHANG PROJECTS CC	168
	RAUBEX GROUP LTD	170
	RO-AL CONSTRUCTION (PTY) LTD	175
	S K S BUSINESS SOLUTIONS CC	177
	SA SCAFFOLD MANUFACTURING (PTY) LTD	179
	SOUTH AFRICAN NATIONAL ROADS AGENCY SOC LTD (THE)	181
	STEFANUTTI STOCKS HOLDINGS LTD	184
	TCM DEVELOPMENTS (PTY) LTD	189
	TIBER CONSTRUCTION (PTY) LTD	191
	TISANG GROUP (PTY) LTD	193
	TN MOLEFE CONSTRUCTION (PTY) LTD	195
	TOP FIX (PTY) LTD	197
	TRENCON CONSTRUCTION (PTY) LTD	199
	UMSO CONSTRUCTION (PTY) LTD	201
	VIVA FORMWORK AND SCAFFOLDING (CAPE TOWN) (PTY) LTD	203
	VNA PILING CC	205
	WACO AFRICA (PTY) LTD	207
	WILSON BAYLY HOLMES-OVCON LTD	211
	WK CONSTRUCTION (PTY) LTD	216
	WK CONSTRUCTION SOUTH AFRICA (PTY) LTD	218
	WOOD SOUTH AFRICA (PTY) LTD	220

Report Coverage

Profiled in the report on the South African construction sector are 67 companies ranging from major listed players and their subsidiaries to building and civil construction start-ups identified through the South African government’s National Gazelles Programme. These include TCM Developments and Lakeshore Trading, a general construction and renovations company that employs 22 people. Also profiled are TN Molefe Construction (Pty) Ltd and the newly incorporated emerging company, Axsys Projects, which have entered into a development alliance with Stefannuti Stocks under the Voluntary Rebuilding Programme.

Introduction

South Africa’s beleaguered construction industry remained under pressure during the final quarter of 2017, with general building and civil construction contractor confidence indices tumbling sharply. However, following the inauguration of Cyril Ramaphosa as President of South Africa, the mood appears to have lifted. Delivering his maiden State of the Nation (SONA) address in February 2018, President Ramaphosa stated that investment in infrastructure was central to the restoration of economic growth, service delivery and job creation. President Ramaphosa also announced that his administration would be assembling a team tasked with accelerating the implementation of new projects, notably in the critical areas of water infrastructure, health and road maintenance. The empowerment of South Africa’s small, medium and micro-sized enterprises (SMMEs) remains a key priority for the Ramaphosa administration. With the restructuring and transformation of the South African construction sector gaining momentum, emerging contractors are poised to play a pivotal role in the rebuilding of the nation.

Strengths

• Barriers to entry for small and micro-sized firms are low.
• South Africa’s construction industry is one of the country’s largest sources of employment.
• The construction industry is viewed as a strategic sector as it serves all sectors of the economy.
• The development of SMMEs and contracting firms owned by historically disadvantaged persons has been prioritised by the South African government.

Weaknesses

• Contracts are often poorly managed and project delays are common.
• Corruption and tender fraud are not uncommon in the industry.
• Profit margins are narrow and projects are commonly over budget.
• Quality control is often sub-standard, particularly amongst smaller contractors.
• There is a high level of reliance on the public sector.
• There is a shortage of skilled labour and retaining professionals with specialist skills remains a challenge.

Opportunities

• Construction of new facilities and the maintenance of existing institutions in the education and health sectors.
• Development of transport networks, notably the rehabilitation and maintenance of existing road networks.
• Public infrastructure projects, notably those relating to the supply of water, sanitation and sewerage; energy; and telecommunications.
• The development of industrial development zones.
• The roll-out of social housing projects, recreational amenities and other facilities.

Threats

• Commodity price volatility.
• Delayed implementation of large projects and/or the failure to implement proposed public sector infrastructure development projects.
• Exchange rate volatility.
• Funding shortfalls, non-payment or tardy settlement by government departments.
• Industrial instability and social upheaval.
• Macroeconomic pressures.

Outlook

South Africa’s Ministry of Finance has upwardly revised the country’s GDP growth projection and the South African economy is forecast to grow by at least 1.5% in 2018. While many stakeholders do not expect conditions in the construction industry to improve significantly over the medium-term, some role players anticipate that the sector will regain momentum under the Ramaphosa administration. Although the 2018/19 National Budget cuts will effectively rein in public expenditure on large projects, commentators say that the recently established Budget Facility for Infrastructure (BFI) is likely to enhance and standardise the management of public infrastructure projects. With the implementation of preferential public procurement legislation and the steady emergence of previously marginalised players, disruption in the South African construction industry is expected to continue.

The Construction Industry in South Africa 2018

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		PAGE
1.	INTRODUCTION	1
2.	DESCRIPTION	1
2.1.	Classification of Contractors	2
2.2.	Core Building and Construction Activities	4
2.3.	Value Chain	5
2.4.	Geographic Position	6
3.	SIZE AND VALUE OF THE SOUTH AFRICAN CONSTRUCTION MARKET	8
4.	STATE OF THE INDUSTRY	31
4.1.	Local	31
4.1.1.	Corporate Actions	32
4.1.2.	Regulatory Developments	33
4.1.3.	Enterprise Development and Socio-Economic Development	36
4.2.	Continental	40
4.3.	International	43
5.	KEY INFLUENCING FACTORS	45
5.1.	Economic Environment	45
5.2.	Government Initiatives and Public Infrastructure Expenditure	46
5.3.	Rising Input Costs	47
5.4.	Labour	47
5.5.	Corruption	52
5.6.	Cyclicality	52
5.7.	Technology, Research and Development (R&D) and Innovation	52
5.8.	Environmental Concerns	55
6.	COMPETITION	57
6.1.	Barriers to Entry	58
7.	SWOT ANALYSIS	59
8.	OUTLOOK	60
9.	INDUSTRY ASSOCIATIONS	60
10.	REFERENCES	61
10.1.	Publications	61
10.2.	Websites	63
	APPENDIX 1	66
	CIDB General Building Contractor Survey Results: Grades 3-8	66
	APPENDIX 2	67
	CIDB Civil Construction Contractor Survey Results: Grades 3-8	67
	COMPANY PROFILES	68
	AMEC FOSTER WHEELER SOUTH AFRICA (PTY) LTD	68
	ARNOTT PANELS (PTY) LTD	70
	AVENG LTD	72
	AXSYS PROJECTS (PTY) LTD	76
	B AND E INTERNATIONAL (PTY) LTD	77
	BASIL READ HOLDINGS LTD	80
	BILFINGER INTERVALVE AFRICA (PTY) LTD	84
	BLUHM BURTON ENGINEERING (PTY) LTD	86
	BOSCH PROJECTS (PTY) LTD	88
	CALGRO M3 HOLDINGS LTD	90
	CAPE FORMWORK CONTRACTORS (PTY) LTD	94
	CATO RIDGE ELECTRICAL CONSTRUCTION (PTY) LTD	96
	COLAS AFRICA HOLDINGS (PTY) LTD	98
	CONCOR CONSTRUCTION (PTY) LTD	100
	CONCOR PROJECTS (PTY) LTD	103
	CONSTRUCTION MAINTENANCE SERVICES (PTY) LTD	105
	DIABOR (PTY) LTD	107
	EDWIN CONSTRUCTION (PTY) LTD	109
	ENZA CONSTRUCTION (PTY) LTD	111
	ESOR LTD	113
	EXR CONSTRUCTION (PTY) LTD	116
	FAIRBROTHER GEOTECHNICAL ENGINEERING (PTY) LTD	119
	FIKILE CONSTRUCTION (PTY) LTD	121
	FLUOR SOUTH AFRICA (PTY) LTD	123
	GAUTENG PILING (PTY) LTD	126
	GEOMECHANICS (PTY) LTD	128
	GIURICICH BROS CONSTRUCTION (PTY) LTD	131
	GLENKEY CONSTRUCTION (PTY) LTD	133
	GROUP FIVE CONSTRUCTION (PTY) LTD	135
	HATCH AFRICA (PTY) LTD	143
	HAW AND INGLIS CIVIL ENGINEERING (PTY) LTD	145
	INTASTOR CONTROLLED ENVIRONMENTS (PTY) LTD	148
	ISCMATLA (PTY) LTD	150
	ISOWALL SOUTHERN AFRICA (PTY) LTD	152
	KAEFER ENERGY PROJECTS (PTY) LTD	155
	KUNTWELA ENZANSI VENTURES (PTY) LTD	157
	LAKESHORE TRADING 102 CC	159
	LIVIERO BUILDING (PTY) LTD	160
	M C E FABRICATION AND CONSTRUCTION (PTY) LTD	163
	MALINGA SCAFFOLDING AND FORMOWORK (PTY) LTD	164
	MAZOR GROUP LTD	165
	MOTHEO CONSTRUCTION GROUP (PTY) LTD	168
	MURRAY AND ROBERTS HOLDINGS LTD	170
	PERI FORMWORK SCAFFOLDING ENGINEERING (PTY) LTD	174
	POWER CONSTRUCTION (PTY) LTD	176
	RAMUTSA RAIL CC	178
	RATEHANG PROJECTS CC	180
	RAUBEX GROUP LTD	181
	RO-AL CONSTRUCTION (PTY) LTD	185
	ROBOR (PTY) LTD	187
	S K S BUSINESS SOLUTIONS CC	190
	SA SCAFFOLDING CC	191
	SOUTH AFRICAN NATIONAL ROADS AGENCY SOC LTD (THE)	193
	STEFANUTTI STOCKS HOLDINGS LTD	196
	TCM DEVELOPMENTS (PTY) LTD	201
	TIBER CONSTRUCTION (PTY) LTD	202
	TISANG GROUP (PTY) LTD	205
	TN MOLEFE CONSTRUCTION (PTY) LTD	206
	TOP FIX (PTY) LTD	208
	TRENCON CONSTRUCTION (PTY) LTD	211
	UMSO CONSTRUCTION (PTY) LTD	212
	UNI-SPAN FORMWORK AND SCAFFOLDING (PTY) LTD	214
	VIVA FORMWORK AND SCAFFOLDING (CAPE TOWN) (PTY) LTD	216
	VNA PILING CC	218
	WACO AFRICA (PTY) LTD	220
	WILSON BAYLY HOLMES-OVCON LTD	224
	WK CONSTRUCTION (PTY) LTD	228

Report Coverage

The report on the South African construction industry and related activities, which includes scaffolding solutions and structurally insulated panel systems (SIPs), describes current conditions and recent developments. Profiled in the report are 54 companies, including Group Five which recently announced that the group would be disposing of its manufacturing cluster. This forms part of a turnaround strategy to return the company to profitability after the group's core operating profit contracted from R736.5m in 2016 to a year-on-year loss of R659.3m for the financial year ended 30 June 2017. The disposal of Murray & Roberts’ Infrastructure and Buildings businesses was unconditionally concluded and transferred to a consortium led by the Southern Palace Group. The company has since been renamed and re-branded as Concor Construction, which is also profiled in this detailed and informative report.

Introduction

The South African construction industry is a strategic sector that supports the government’s National Development Plan (NDP). Related activities covered in this report include formwork and scaffolding solutions, as well as structural insulated panel systems (SIPS). In 2016 total nominal expenditure on construction works and related activities totalled around R420bn and the sector generated an estimated 1,483,000 employment opportunities across the formal and informal sectors. Delivering his medium-term budget in October 2017, Finance Minister Gigaba announced that R948bn had been earmarked for public infrastructure investment in South Africa over the next three years. However, with the construction sector having shed 140,000 jobs between the first and third quarters of 2017, some role players warn that the industry has entered a highly precarious period.

Strengths

• South Africa’s construction industry is one of the country’s largest sources of employment.
• The construction industry is viewed as a strategic sector as it serves all sectors of the economy.
• The sector’s major players are established companies with offices across Africa, as well as in other countries across the globe.
• There is a relatively high level of innovation.
• There is a strong culture of small business development.

Weaknesses

• Construction is a high impact industry and construction sites are inherently hazardous workplaces.
• Contracts are often poorly executed, project delays are common and quality control is often substandard, particularly amongst smaller contractors.
• Corruption and tender fraud are not uncommon in the industry.
• Profit margins are narrow and projects are commonly over budget.
• The industry is male-dominated, there is a shortage of skilled labour, and retaining professionals with specialist skills is a challenge.
• There is a high level of reliance on the public sector.
• There is generally a low level of regulatory compliance.

Opportunities

• Implementation of sustainable, ‘green’ building techniques.
• Provision of technologies that offer 3D modelling and/or 3D video tours of construction sites, as well as technologies that facilitate project visualisation.
• The creation of integrated micro-living solutions.
• The development of drone services for the autonomous handling of materials on construction sites.
• The implementation of advanced 3D-printing building technologies.
• The roll-out of infrastructure development projects in South Africa, on the African continent and offshore.
• The supply of modular structures and SIPS, in response to market demand for low-cost housing and new energy efficiency legislation.

Threats

Outlook

The second decade of the 21st century is proving to be an extremely challenging period for contractors operating in South Africa’s construction sector. Declining demand and adverse business conditions continue to exact a heavy toll on the profitability of the industry. Some role players caution that ‘green shoots’ are few and that declining demand for civil construction and other building work does not bode well for the future growth prospects of the sector. They warn that if negative conditions persist, other key players could follow the lead of former industry giant, Murray & Roberts, and exit South Africa’s construction sector. However, while the short-term outlook appears bleak, several stakeholders believe that positive initiatives to fast-track transformation will support the recovery of the industry, which, in turn, will be better positioned to support the country’s 2030 infrastructure development goals.

The Construction Industry in South Africa 2017

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		PAGE
1.	INTRODUCTION	1
2.	DESCRIPTION OF THE INDUSTRY	1
2.1.	Value Chain	4
2.2.	Geographic Position	5
3.	SIZE OF THE INDUSTRY	6
4.	STATE OF THE INDUSTRY	19
4.1.	Local	19
4.1.1.	Corporate Actions	25
4.1.2.	Regulations	27
4.1.3.	Enterprise Development and Socio-Economic Development Initiatives	32
4.2.	Continental	35
4.3.	International	39
5.	INFLUENCING FACTORS	41
5.1.	Government Interventions	41
5.2.	Economic Environment	42
5.3.	Rising Input Costs	43
5.4.	Labour	44
5.5.	Supply and Quality of Building Materials	48
5.6.	Health and Safety Concerns	49
5.7.	Technology, Research and Development (R&D) and Innovation	50
5.8.	Environmental Concerns	54
5.9.	Cyclicality	57
5.10.	Corruption	57
6.	COMPETITION	58
6.1.	Barriers to Entry	60
7.	SWOT ANALYSIS	61
8.	OUTLOOK	62
9.	INDUSTRY ASSOCIATIONS	62
10.	REFERENCES	63
10.1.	Publications	63
10.2.	Websites	65
	APPENDIX 1	67
	The Construction Industry Development Board (CIDB) Grading Designations	67
	APPENDIX 2	68
	The Global Competitiveness Index 2017-2018: South Africa	68
	COMPANY PROFILES	69
	AMEC FOSTER WHEELER SOUTH AFRICA (PTY) LTD	69
	ARNOTT PANELS (PTY) LTD	71
	AVENG LTD	73
	B AND E INTERNATIONAL (PTY) LTD	77
	BASIL READ HOLDINGS LTD	80
	BILFINGER INTERVALVE AFRICA (PTY) LTD	84
	BLUHM BURTON ENGINEERING (PTY) LTD	86
	BOSCH PROJECTS (PTY) LTD	88
	CALGRO M3 HOLDINGS LTD	90
	CAPE FORMWORK CONTRACTORS (PTY) LTD	94
	CATO RIDGE ELECTRICAL CONSTRUCTION (PTY) LTD	96
	COLAS AFRICA HOLDINGS (PTY) LTD	98
	CONCOR CONSTRUCTION (PTY) LTD	100
	CONCOR PROJECTS (PTY) LTD	103
	CONSTRUCTION MAINTENANCE SERVICES (PTY) LTD	105
	DIABOR (PTY) LTD	107
	ESOR LTD	109
	EXR CONSTRUCTION (PTY) LTD	112
	FAIRBROTHER GEOTECHNICAL ENGINEERING (PTY) LTD	115
	FLUOR SOUTH AFRICA (PTY) LTD	117
	GAUTENG PILING (PTY) LTD	120
	GEOMECHANICS (PTY) LTD	122
	GIURICICH BROS CONSTRUCTION (PTY) LTD	125
	GLENKEY CONSTRUCTION (PTY) LTD	127
	GROUP FIVE CONSTRUCTION (PTY) LTD	129
	HATCH AFRICA (PTY) LTD	137
	HAW AND INGLIS CIVIL ENGINEERING (PTY) LTD	139
	INTASTOR CONTROLLED ENVIRONMENTS (PTY) LTD	142
	ISCMATLA (PTY) LTD	146
	ISOWALL SOUTHERN AFRICA (PTY) LTD	148
	KAEFER ENERGY PROJECTS (PTY) LTD	150
	LIVIERO BUILDING (PTY) LTD	152
	MAZOR GROUP LTD	155
	MOTHEO CONSTRUCTION GROUP (PTY) LTD	158
	MURRAY AND ROBERTS HOLDINGS LTD	160
	NMC (PTY) LTD	163
	PERI FORMWORK SCAFFOLDING ENGINEERING (PTY) LTD	166
	POWER CONSTRUCTION (PTY) LTD	168
	RAMUTSA RAIL CC	170
	RAUBEX GROUP LTD	172
	RO-AL CONSTRUCTION (PTY) LTD	176
	ROBOR (PTY) LTD	178
	SA SCAFFOLDING CC	181
	SOUTH AFRICAN NATIONAL ROADS AGENCY SOC LTD (THE)	183
	STEFANUTTI STOCKS HOLDINGS LTD	186
	TIBER CONSTRUCTION (PTY) LTD	191
	TN MOLEFE CONSTRUCTION (PTY) LTD	194
	TOP FIX (PTY) LTD	196
	UNI-SPAN FORMWORK AND SCAFFOLDING (PTY) LTD	199
	VIVA FORMWORK AND SCAFFOLDING (CAPE TOWN) (PTY) LTD	201
	VNA PILING CC	203
	WACO AFRICA (PTY) LTD	205
	WILSON BAYLY HOLMES-OVCON LTD	209
	WK CONSTRUCTION (PTY) LTD	213

Report Coverage

Introduction

This report focuses on the South African construction industry and related activities, including scaffolding solutions and structurally insulated panel systems (SIPs). With total annual income in excess of R392bn and supporting over 500,000 direct jobs in the formal sector, building and construction activities play a vital role in the South African economy. However, the beleaguered sector remains stifled by the prevailing economic slowdown. Moreover, with a number of major construction companies currently facing damages claims for anti-competitive behaviour filed by the state-owned South African National Roads Agency (SANRAL), the spectre of collusive conduct continues to hover over some of the sector’s leading players. With the impending exit from the sector of Murray & Roberts, a construction titan that has been an integral part of the South African building and construction landscape since 1902, the industry has been dealt a further blow.

Strengths

• The construction industry is viewed as a strategic sector as it serves all sectors of the economy and provides over 500,000 direct jobs in the formal sector.
• The sector’s major players are established companies with offices across Africa, as well as in other countries across the globe.
• There is a relatively high level of innovation.
• There is a strong culture of small business development.

Weaknesses

• Construction is a high impact industry and construction sites are inherently hazardous workplaces.
• Contracts are often poorly executed, project delays are common and quality control is often sub-standard, particularly amongst smaller contractors.
• Corruption and tender fraud are not uncommon in the industry.
• Profit margins are narrow and projects are commonly over budget.
• The industry is male-dominated, there is a shortage of skilled labour, and retaining professionals with specialist skills is a challenge.
• There is a high level of reliance on the public sector.
• There is generally a low level of regulatory compliance.

Opportunities

• Implementation of sustainable, ‘green’ building techniques.
• Renewable energy projects.
• The roll-out of infrastructure development projects in South Africa, on the continent and offshore.
• The uptake of advanced 3D-printing building technologies.
• The uptake of SIPs, which is largely driven by market demand for low-cost housing and new energy efficiency legislation.
• The use of plastic interlocking bricks in social housing programmes.

Threats

• Commodity price volatility.
• Delayed implementation of large projects and/or the failure to implement proposed public sector infrastructure development projects.
• Domestic political and economic instability, as well as global geopolitical and macroeconomic pressures.
• Exchange rate volatility.
• Industrial unrest and social upheaval.

Outlook

The construction industry is facing fundamental disruption, as advanced 3D-printing solutions, nanotechnology and robotics start to make inroads into the sector. Several commentators warn that job losses are inevitable and are urging construction companies to take proactive measures to upskill their employees. Meanwhile new innovations in the sector, notably the construction of affordable housing from recycled plastic waste, offer positive solutions to critical challenges facing South Africa and other developing nations. Against a backdrop of countrywide social and political upheaval, coupled with the prospect of the possible downgrading of South Africa by international ratings agencies to ‘junk status’, many analysts predict that the local construction sector is likely to remain under pressure. Stakeholders say that if the situation is to improve, substantial investment in infrastructure is required. Some analysts believe that the sector could regain momentum in the short-term, as government endeavours to implement the long-awaited NDP before South Africans go to the polls in 2019.

The Construction Industry in South Africa 2016

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The Construction Industry in South Africa 2024-12-14

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The Construction industry in South Africa 2022-08-16

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The Construction Industry in South Africa 2020-09-29

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The Construction Industry in South Africa 2019-07-16

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The Construction Industry in South Africa 2018-04-04

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The Construction Industry in South Africa 2017-12-12

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The Construction Industry in South Africa 2015-09-30

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		PAGE
1.	INTRODUCTION	1
2.	DESCRIPTION OF THE INDUSTRY	1
2.1.	Industry Value Chain	4
2.2.	Geographic Position	5
3.	SIZE OF THE INDUSTRY	6
4.	STATE OF THE INDUSTRY	19
4.1.	Local	19
4.1.1.	Corporate Actions	23
4.1.2.	Regulations	26
4.1.3.	Enterprise Development and Social Economic Development	30
4.2.	Continental	33
4.3.	International	36
5.	INFLUENCING FACTORS	38
5.1.	Government Initiatives	38
5.2.	Economic Environment	39
5.3.	Rising Input Costs	40
5.4.	Labour	40
5.5.	Supply and Quality of Building Materials	44
5.6.	Health and Safety Concerns	45
5.7.	Technology, Research and Development (R&D) and Innovation	45
5.8.	Environmental Concerns	48
5.9.	Cyclicality	50
5.10.	Corruption	50
6.	COMPETITION	51
6.1.	Barriers to Entry	53
7.	SWOT ANALYSIS	53
8.	OUTLOOK	54
9.	INDUSTRY ASSOCIATIONS	55
10.	REFERENCES	56
10.1.	Publications	56
10.2.	Websites	57
	APPENDIX 1	59
	The Construction Industry Development Board (CIDB) Grading Designation	59
	APPENDIX 2	60
	Green Building Practices	60
	COMPANY PROFILES	61
	AMEC FOSTER WHEELER SOUTH AFRICA (PTY) LTD	61
	ARNOTT PANELS (PTY) LTD	63
	AVENG LTD	66
	B AND E INTERNATIONAL (PTY) LTD	70
	BASIL READ HOLDINGS LTD	72
	BILFINGER INTERVALVE AFRICA (PTY) LTD	76
	BLUHM BURTON ENGINEERING (PTY) LTD	78
	BOSCH STEMELE (PTY) LTD	80
	CALGRO M3 HOLDINGS LTD	82
	CAPE FORMWORK CONTRACTORS (PTY) LTD	85
	CATO RIDGE ELECTRICAL CONSTRUCTION (PTY) LTD	87
	COLAS AFRICA HOLDINGS (PTY) LTD	89
	CONSTRUCTION MAINTENANCE SERVICES (PTY) LTD	91
	DIABOR (PTY) LTD	93
	DURA SOLETANCHE-BACHY (PTY) LTD	95
	ESOR LTD	97
	EXR CONSTRUCTION (PTY) LTD	100
	FAIRBROTHER GEOTECHNICAL ENGINEERING CC	102
	FLUOR SOUTH AFRICA (PTY) LTD	104
	GAUTENG PILING (PTY) LTD	106
	GEOMECHANICS (PTY) LTD	108
	GIURICICH BROS CONSTRUCTION (PTY) LTD	110
	GLENKEY CONSTRUCTION (PTY) LTD	112
	GROUP FIVE CONSTRUCTION LTD	114
	HATCH AFRICA (PTY) LTD	122
	HAW AND INGLIS CIVIL ENGINEERING (PTY) LTD	125
	INTASTOR CONTROLLED ENVIRONMENTS (PTY) LTD	128
	ISCMATLA (PTY) LTD	132
	ISOWALL SOUTHERN AFRICA (PTY) LTD	134
	KAEFER ENERGY PROJECTS (PTY) LTD	136
	LIVIERO BUILDING (PTY) LTD	138
	MAZOR GROUP LTD	141
	MOTHEO CONSTRUCTION GROUP (PTY) LTD	144
	MURRAY AND ROBERTS HOLDINGS LTD	147
	NMC (PTY) LTD	151
	PERI FORMWORK SCAFFOLDING ENGINEERING (PTY) LTD	154
	POWER CONSTRUCTION (PTY) LTD	157
	RAUBEX GROUP LTD	160
	RO-AL CONSTRUCTION (PTY) LTD	164
	ROBOR (PTY) LTD	166
	SA SCAFFOLDING CC	169
	SOUTH AFRICAN NATIONAL ROADS AGENCY SOC LTD (THE)	171
	STEFANUTTI STOCKS HOLDINGS LTD	174
	TIBER CONSTRUCTION (PTY) LTD	179
	TOP FIX (PTY) LTD	182
	UNI-SPAN FORMWORK AND SCAFFOLDING (PTY) LTD	185
	VIVA FORMWORK AND SCAFFOLDING (CAPE TOWN) (PTY) LTD	187
	VNA PILING CC	189
	WACO AFRICA (PTY) LTD	191
	WILSON BAYLY HOLMES-OVCON LTD	195
	WK CONSTRUCTION (PTY) LTD	200

Report Coverage

This report on the construction industry in South Africa focuses on conditions in the local sector, recent developments and factors influencing the success of the sector. The report also profiles more than 100 companies, ranging from the listed Aveng Limited group, the country’s largest construction and engineering company by revenue which has 31,768 employees, to unlisted Tiber Bonvec Construction (Pty) Ltd, which employs 210 people and is involved in the construction of Triple A office blocks, warehouses, distribution centres and shopping centres.

Introduction

This report focuses on South Africa’s construction industry. It includes information on the manufacture and use of Structurally Insulated Panels (SIPs) and also provides a synopsis of scaffolding solutions and service providers. The construction sector is of strategic importance as it serves all sectors of the economy and is highly labour-intensive, providing employment to over 1 million people across both the formal and informal sectors of the South African economy. According to Statistics South Africa, the value added by South Africa’s construction industry to the country’s GDP amounted to R138.9bn in 2014. Its image tarnished by collusion scandals involving several leading players in the sector, South Africa’s embattled construction industry continues to find itself under pressure. Although the 2015 National Budget has earmarked R274bn for public sector infrastructure projects in the current fiscal year, stakeholders warn that further delays in project implementation could result in substantial job losses.

Strengths

• The construction industry is viewed as a strategic sector as it serves all sectors of the economy and provides over 1 million jobs.
• The sector’s major players are established companies with offices across Africa, as well as offshore interests.
• There is a strong culture of small business development.

Weaknesses

• Corruption and tender fraud is not uncommon in the industry.
• Profit margins are narrow.
• There is a high level of reliance on the public-sector.
• There is a shortage of skilled labour, and retaining professionals with specialist skills is a challenge.
• There is generally a low level of regulatory compliance particularly among smaller contractors.

Opportunities

• Implementation of green building techniques.
• Infrastructure development projects in Africa and offshore.
• New product lines and innovations such as SIPs, driven by market demand for low-cost housing and new energy efficiency legislation.
• Renewable energy projects.
• Roll-out of 3D-printing building technologies.

Threats

• Delayed implementation of projects and/or the failure to implement proposed public sector infrastructure development projects.
• Exchange rate and commodity price volatility.
• Funding shortfalls, non-payment or tardy settlement by government departments. Domestic and global recessionary pressures.
• Labour instability.
• Power shortages.

Outlook

South Africa’s budget for the construction, rehabilitation and maintenance of public infrastructure over the current medium-term expenditure framework period has been downwardly revised from R847.3bn to R813.1bn. While the erosion of funds allocated for infrastructure is a significant concern, one of the key issues articulated by stakeholders is the South African government’s failure to implement the roll-out of large-scale projects as envisaged in the National Development Plan. Stakeholders warn that the implications of further project delays will be felt throughout the value chain and will result in substantial job losses. Muted economic growth, public sector inefficiency, electricity disruptions and labour instability, compounded by the weakness of both the local currency and global commodity prices, make for a market that is not conducive to investment growth. Many analysts warn that private investors will increasingly seek better returns beyond South Africa’s borders. Large-scale private sector projects under development or in the pipeline that are expected to provide a much-needed boost to the industry include the R84bn Chinese-financed development in Modderfontein, Johannesburg, which has been dubbed the “new Manhattan of Africa,” the 116,000m² Mall of Africa in Waterfall Estate Midrand, 90,000m² of new build to Fourways Mall in Johannesburg’s northern suburbs, the R11bn Vaal River City and the R6.5bn Steyn City Property Development in Fourways, Johannesburg.

The Construction Industry in South Africa 2015

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Industry Landscape

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The Construction Industry in South Africa 2026-02-26

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The Construction Industry in South Africa 2024-12-14

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The Construction industry in South Africa 2022-08-16

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The Construction Industry in South Africa 2020-09-29

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The Construction Industry in South Africa 2019-07-16

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The Construction Industry in South Africa 2018-04-04

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The Construction Industry in South Africa 2017-12-12

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The Construction Industry in South Africa 2016-10-24

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		PAGE
1.	INTRODUCTION	1
2.	DESCRIPTION OF THE INDUSTRY	1
2.1.	Industry Value Chain	5
2.2.	Geographic Position	6
3.	SIZE OF THE INDUSTRY	7
4.	STATE OF THE INDUSTRY	9
4.1.	Local	9
4.1.1.	Corporate Actions	14
4.1.2.	Regulations and Government Programmes	17
4.1.3.	Enterprise Development and Socio-Economic Development	21
4.2.	Continental	23
4.3.	International	27
5.	INFLUENCING FACTORS	30
5.1.	Economic Environment	30
5.2.	Government Infrastructure Programme Spend	31
5.3.	Input Costs	32
5.4.	Labour	32
5.5.	Supply and Quality of Building Materials	37
5.6.	Health and Safety Concerns	37
5.7.	Information Technology	38
5.8.	Technology	39
5.9.	Cyclicality	39
5.10.	Environmental Concerns	40
5.11.	Corruption	42
6.	COMPETITION	43
6.1.	Barriers to Entry	44
6.2.	Innovation	45
6.3.	Research and Development (R&D)	46
7.	SWOT ANALYSIS	47
8.	OUTLOOK	47
9.	INDUSTRY ASSOCIATIONS	48
10.	REFERENCES	49
10.1.	Publications	49
10.2.	Websites	50

Construction industry South Africa

The Construction Industry in South Africa 2026

The Construction Industry in South Africa 2024

The Construction industry in South Africa 2022

The Construction Industry in South Africa 2020

The Construction Industry in South Africa 2019

The Construction Industry in South Africa 2018

The Construction Industry in South Africa 2017

The Construction Industry in South Africa 2016

The Construction Industry in South Africa 2015

Report Info

Report Coverage

Introduction

Trends

Opportunities

Challenges

Outlook

Full Report Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. Full Industry reports also profile all major players operating in the industry.

Industry Landscape Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. The Overview reports do not include profiles of major players.

Historical Reports

The Construction Industry in South Africa 2024-12-14

The Construction industry in South Africa 2022-08-16

The Construction Industry in South Africa 2020-09-29

The Construction Industry in South Africa 2019-07-16

The Construction Industry in South Africa 2018-04-04

The Construction Industry in South Africa 2017-12-12

The Construction Industry in South Africa 2016-10-24

The Construction Industry in South Africa 2015-09-30

Table of Contents

Report Coverage

Introduction

Trends

Opportunities

Challenges

Outlook

Full Report Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. Full Industry reports also profile all major players operating in the industry.

Industry Landscape Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. The Overview reports do not include profiles of major players.

Historical Reports

The Construction Industry in South Africa 2026-02-26

The Construction industry in South Africa 2022-08-16

The Construction Industry in South Africa 2020-09-29

The Construction Industry in South Africa 2019-07-16

The Construction Industry in South Africa 2018-04-04

The Construction Industry in South Africa 2017-12-12

The Construction Industry in South Africa 2016-10-24

The Construction Industry in South Africa 2015-09-30

Table of Contents

Report Coverage

Introduction

Strengths

Weaknesses

Opportunities

Threats

Selected Highlights

Outlook

Full Report Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. Full Industry reports also profile all major players operating in the industry.

Industry Landscape Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. The Overview reports do not include profiles of major players.

Historical Reports

The Construction Industry in South Africa 2026-02-26

The Construction Industry in South Africa 2024-12-14

The Construction Industry in South Africa 2020-09-29

The Construction Industry in South Africa 2019-07-16

The Construction Industry in South Africa 2018-04-04

The Construction Industry in South Africa 2017-12-12

The Construction Industry in South Africa 2016-10-24

The Construction Industry in South Africa 2015-09-30

Table of Contents

Report Coverage

Introduction

Strengths

Weaknesses

Opportunities

Threats

Outlook

Full Report Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. Full Industry reports also profile all major players operating in the industry.

Industry Landscape Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. The Overview reports do not include profiles of major players.

Historical Reports

The Construction Industry in South Africa 2026-02-26

The Construction Industry in South Africa 2024-12-14

The Construction industry in South Africa 2022-08-16

Full Report

Industry Landscape

Full Report

Industry Landscape

Full Report

Industry Landscape

Full Report

Industry Landscape

Full Report

Industry Landscape

Full Report

Industry Landscape

Full Report

Industry Landscape