Industry Insight South African Macroeconomic and Construction Forecast 2026 – 2028

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…

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Construction Material Input Costs reach 42 month high in June 2026

Construction material inpu cost inflation remained a significant challenge during June 2026. Although Stats Sa’s Composite Construction Material Price Index increased by a modest 0.3% month-on-month, annual inflation accelerated to 9.5%, the highest level since January 2023, as cost pressures intensify across the construction supply chain. Strong annual price increases were recorded for cement (although…

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Construction Wrap 29 July 2026

R21.7bn Airport Programme advances as Waterfall City breaks ground and SANRAL resets R9.5bn maintenance procurement. Large infrastructure projects and long-term investment plans dominated construction-related developments this week. Airports Company South Africa unveiled a R21.7 billion five-year investment programme covering major upgrades across six airports, while construction officially got underway on the R750 million Waterfall City…

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Construction growth outlook of the Top 5 Best run municipalities in South Africa

According to Ratings Afrika’s latest Municipal Financial Stability Index,Drakenstein, Hessequa, Overstrand, Saldanha Bay and Swartland, are regarded as South Africa’s top run municipalities across the country. Good governance is increasingly becoming one of the strongest indicators of future construction activity in South Africa. Municipalities with sound financial management are generally better positioned to maintain infrastructure,…

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Broad base decline in private sector approvals in May 2026, with a few provincial exceptions

Private sector building approvals weakened during May 2026, with approved floor area declining 13.8% year-on-year, driven largely by significant declines in the Western Cape and Gauteng, South Africa’s two largest building markets. While higher interest rates following the May SARB repo rate increase are likely to have added pressure to development activity, the slowdown was…

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Provincial Construction Pipeline 2026Q1

What is the Provincial Construction Pipeline?  The Provincial Construction Pipeline Report was developed to provide an early indication of where construction activity is heading before those trends become visible in traditional economic statistics. By combining public-sector tenders, private-sector building approvals and major project announcements into a single provincial framework, the model provides a forward-looking measure…

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Construction Wrap 23 July 2026

Mpumalanga secures R7.2bn utility funding as Olifants Water Project reaches financial close Infrastructure funding dominated construction-related developments this week, with the approval of the World Bank’s R24.7 billion Development Policy Loan, the African Development Bank’s R7.2 billion Mpumalanga Municipal Utility Reform Programme, and further financial progress on the R25 billion Olifants Management Model Programme. Together,…

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Construction Wrap 16 July 2026 

Construction mafia policy takes effect as Treasury moves against failing municipalities This week’s Construction Intelligence Brief explores one of the biggest challenges facing South Africa’s infrastructure sector: governance. National Treasury’s decision to temporarily withhold funding from 69 municipalities, the Auditor-General’s findings on municipal performance and government’s strengthened response to construction-related extortion all point to the…

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Construction Wrap 8 July 2026

SANRAL fuels Mpumalanga’s boom while rising costs squeeze contractors margins South Africa’s construction sector continues to build momentum, but the latest developments suggest that activity alone is no longer a reliable measure of industry health. Several indicators point to a market that is becoming considerably busier, supported by major road projects, industrial investment, growing work…

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Cement imports continue to increase

South Africa’s cement imports remained at historically elevated levels during the first five months of 2026, despite a moderation in import volumes during May. Total cement imports reached 599,641 tons by the end of May, representing a 12.0% increase compared with the same period in 2025. While May imports eased to 125,601 tons, down from…

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