|PROMOTION: The lockdown presents an opportunity to research new business and new markets to pursue when it lifts. To assist South African businesses in these difficult times, Who Owns Whom is offering a 50% discount on all industry reports purchased during this period. The 50% discount will be applied on/at checkout.|
|INDUSTRY REPORTS||PUBLICATIONS||DATA FEED SERVICES||WOWEB||CONTACT US|
Item added to your cart
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.
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.
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.
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.