Actual expenditure by provinces on buildings and other fixed structures increased by a nominal 2.1 percent y-y in the 1st quarter of 2024 (last quarter of the 2023/24 financial year) compared to the same period in 2023. According to Treasury provinces spent R27.6bn on buildings and other fixed structures (without providing a breakdown of these…
A range of infrastructure and development projects across South Africa aimed at enhancing service delivery and economic growth were announced during April 2024. The City of Cape Town is building a 7 MW solar power plant and investing R4 billion in electrical grid upgrades. Transnet is seeking partners for the Cape Town Port and developing…
In January 2024, building approvals nationally declined for the 7th straight month, with a 13% decrease year-on-year. Free State saw a significant increase, while other regions like Limpopo and Kwazulu Natal showed modest improvements. However, overall national trends indicate a challenging start to the year, with lower approval rates compared to the previous year. Gauteng…
Mining production of building materials experienced a difficult 2023, with production down 6 percent in 2023. The rate of decline accelerated during the 2nd half of 2023, and this momentum was carried through to January 2024, with production down 10.6 percent y-y (not seasonally adjusted). By comparison mining production (excluding gold), although also performing poorly,…
In February 2024, South Africa witnessed pivotal events such as the State of the Nation Address (SONA) and the National Budget Speech, shedding light on the nation’s economic challenges. The SONA, usually a platform for showcasing achievements, appeared more geared towards election campaigning this time. Conversely, the Budget Speech delved deep into governmental finances, revealing…
The Gross Fixed Capital Formation (GFCF) estimates released by Stats SA for the fourth quarter of 2023 indicate ongoing pressure on the construction industry, particularly in residential and civil construction works. Residential investment has seen a significant decline, while the non-residential market has shown some growth, likely fueled by renovations and alterations related to renewable…
In this month’s monitor we include a “Key Construction Indicator Summary” for the Month, Quarter and Year to Date. We look at the performance of JSE companies involved in the construction sector, the extent of liquidations in the industry, performance of the retail and wholesale trade sales, construction material price inflation, and our usual updates…
The listed sector involved in the local construction sector experienced a better month in November 2023 with only 27 percent of the companies included in the compilation of the index having reported lower market capitalisation values compared to October. The Suppliers sub-index posted the best performance thanks to PPC, with the composite index for Residential…
The nominal rate of change in the estimated value of the South African construction pipeline slowed marginally to 12.4 percent y-y as at September 2023, compared to an increase of 14.8 percent y-y at the end of June 2023. Free State recorded the highest increase, of 74 percent y-y as at September 2023, with Mpumalanga…
Coming off a record low base, Gauteng offers some opportunities in the office space environment. Gauteng continues to dominate with the highest number of sqm approved for new office space development, and increased by 234 percent y-y over the last 12 months, compared to an overall increase of 129 percent. This is not enough to…
