The estimated nominal value of civil projects put out to tender in South Africa rose to R6.8 billion in August 2024, up from R5.5 billion in July. However, this figure remains nearly 20% lower compared to August 2023. The Western Cape led with the highest project value at R1.3 billion, followed by KwaZulu-Natal, Mpumalanga, and…
The global economic outlook since the last review presents a mixed picture, with moderate growth expected in the Euro Area but weaker projections for the US and China in 2025, which may affect South Africa’s trade. Inflation is under control, and a weaker dollar due to an anticipated US Federal Reserve interest rate cut could…
The South African Reserve Bank (SARB) maintained the repo rate at 8.25% during its July 2024 Monetary Policy Committee (MPC) meeting, despite consumer inflation stabilizing at 5.2%. While some committee members advocated for a rate cut, the majority favoured holding the rate steady due to ongoing inflation risks. The SARB aims for a mid-range inflation…
The future looks promising with the focus on the necessity and economic benefits of increased infrastructure spending. However, bold statements require a clear action plan, and the specifics of implementation remain uncertain. The government’s expenditure plans will be closely monitored, and the upcoming Medium-Term Budget Policy in October 2024 is expected to provide more insights…
In June 2024, tender values for civil projects declined by 32% year-on-year (y-o-y), with decreases observed in most provinces except North West and Northern Cape. The Western Cape experienced the most significant drop, with tender values falling by R16 billion compared to June 2023. The value of road project tenders decreased by 38% y-o-y, and…
Based on key construction indicators released for the 1st Quarter of 2024, the annual change in the Provincial Construction Pipeline Model (PCPM) decelerated to a nominal increase of 3.3 percent by the end of March 2024, down from a 4.1 percent increase at the end of December 2023. Significant provincial variations are evident, with provinces…
The composite CRMS index (including market capitalisation values of contractors, suppliers, retailers, selected residential and non-residential property funds) gained 12.8 percent m-m in June 2024, (compared to the previous month), with gains shown across all the sub-indices. The Contractors Index showed a double digit increase for the 2nd consecutive month, with the retailers sub-index up…
Property prices are influenced by various factors including economic conditions, interest rates, credit availability, inflation, supply and demand, government policies, location, and market sentiment. In South Africa, COVID-19 caused significant semigration, particularly from poorly governed provinces like Gauteng to better-managed ones like the Western Cape, driving up demand amid low interest rates. Residential property prices…
In May 2024, the value of public sector building tenders fell below R900 million from over R2 billion in April 2024 and May 2023. Despite this decline, tender values for the first five months of 2024 still showed a 54 percent year-over-year increase. The Eastern Cape and KwaZulu-Natal led in tender values for May 2024,…
In Q1 2024, GDP fell by 0.1%, with most sectors underperforming except agriculture, which grew by 13.5%. Construction was the hardest hit, declining by 3.1%, followed by mining (-2.3%) and manufacturing (-1.4%). Construction investment dropped significantly, with residential and non-residential investments contracting sharply. Despite challenges, the civil industry showed positive signs with increased project awards…
