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The South African Construction Industry
BY Carole Veitch
South Africa
04 April 2018
R 10 080.00 (ZAR)  
estimated $ 714.85 (USD) *
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The South African Construction Sector


The South African Construction sector focuses on all major contractors as well as emerging small, medium and micro-sized enterprises (SMMEs) that include formal contractors registered with the Construction Industry Development Board (CIDB) and non-registered micro-contractors that operate informally. Government-led initiatives to transform the sector and support the empowerment of SMMEs have resulted in significant restructuring of the industry and the emergence of new players. Smaller building companies, largely involved in the residential building market, are set to benefit from the government’s drive to empower SMMEs while emerging building contractors are expected to become increasingly involved in small-scale and medium-scale public projects.


Current Conditions


South Africa’s 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 recent 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. Although the amount allocated to large public infrastructure projects in the February 2018 Budget decreased by 12% in nominal terms down to R834.1bn, stakeholders expressed optimism that the amount would be spent on much-needed infrastructure projects.


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.


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