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The Construction Industry in South Africa
BY Carole Veitch
South Africa
29 September 2020
R 14 400.00 (ZAR)  
estimated $ 866.34 (USD) *
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The Construction Industry in South Africa


The South African construction sector is a driver of socio-economic development and a key employment multiplier, yet despite its strategic importance, declining infrastructure expenditure and mothballed public sector projects have affected the sector. In 2019, the value added by the construction sector accounted for around 4% of GDP and it employed well over 1.3 million people.


Industry Performance


The ailing construction industry experienced a turbulent decade and was in distress prior to the onset of the coronavirus crisis. Its performance has been exacerbated by a decline in government and private sector investment. Some local construction companies have diversified into other sectors, while others have gone out of business or sold their local construction business to focus on other markets. Construction companies under business rescue include Basil Read, Esor Construction and Group Five.


Coronavirus


The construction industry was not classified as an essential service prior to the 27 March 2020 lockdown. With the exception of construction services relating to the health sector and urgent repairs and maintenance, work on construction sites was suspended, and projects have slowly resumed with the phased reopening of the economy. The impact of the pandemic on major construction companies has varied, as many operate in other countries. Given the impact of the lockdown on the economy, analysts anticipate that demand for general building services will remain severely constrained over the short term and possibly the medium term.


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.


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