R35bn Transnet Push and R8.1bn Metro Funding Put Infrastructure Delivery Back in Focus The past week brought a renewed focus on infrastructure funding and project delivery, led by Transnet’s planned R35 billion funding request for projects through 2030 and the R8.1 billion AIIB-backed programme targeting water, electricity and waste services across the eight metros. Water…
South Africa’s cement imports increased by 19% m-m in June 2026 and 34.4% y-y to 149,487 tons, taking imports for the first half of the year to 749,129 tons, up 15.8% y-y. Vietnam remained the dominant supplier, accounting for just over 90% of year-to-date imports, while Durban handled around 75% of total volumes. Although no…
Tougher economic start to 2026, but a few provinces buck the trend South Africa entered the second half of 2026 under renewed economic pressure. Headline inflation accelerated to 5.0% y-y in June, producer inflation reached 7.5%, and the prime lending rate remained elevated at 10.5%, limiting the prospects for a meaningful recovery in household and…
Construction delivered one of the stronger signals this week, with employment increasing 7.5% y/y in Q2 2026 to 1.35 million workers, despite a deterioration in the broader labour market. The detail was less convincing, however, with the increase driven by a 21% rise in informal construction employment, while formal employment declined by 1.8%. Gauteng and…
This week reminded me just how much the conversation around South Africa’s construction industry has changed. A year or two ago, we were asking whether government was serious about infrastructure investment. This week, National Treasury made infrastructure bonds a permanent funding mechanism, President Ramaphosa launched the National Water Action Plan, and Operation Vulindlela continued to…
There are some interesting developments in the South African residential market. With growing demand, especially in the affordable housing market segment, house prices have now reached the highest increase dating back to 2011, up 8.6% (nominal) against a 3.1% increase in inflation as at March 2026 (latest available residential price indices published by Stats SA)….
The Construction Market Sentiment Index (CMSI) tracks the performance of selected JSE-listed construction companies to provide a forward-looking view of how financial markets perceive the outlook for South Africa’s construction industry. Investor sentiment towards South Africa’s listed construction sector weakened during July 2026, despite continued improvements in the financial performance of many of the industry’s…
South Africa’s infrastructure funding model appears to be entering a new phase. With government facing growing fiscal constraints, recent reforms signal a deliberate shift away from relying solely on public budgets towards a more diversified financing model. National Treasury’s introduction of permanent infrastructure bonds and the proposed Credit Guarantee Vehicle (CGV), together with increased participation…
The July 2026 Preferred Supplier Survey (PSS), based on feedback from contractors on 38 active construction projects with a combined value of approximately R11.0 billion, provides valuable insight into the challenges currently affecting project delivery across South Africa. While the projects surveyed span a range of sectors and provinces, a common theme emerging from contractor…
Recovery under Construction South Africa’s economy is expected to remain on a path of gradual recovery over the medium term, although growth is likely to remain below the level required to meaningfully reduce unemployment or accelerate infrastructure delivery. Real GDP is forecast to increase modestly between 2026 and 2028 as inflation gradually moderates, interest rates…
