Category: Uncategorized

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…

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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)….

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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…

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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…

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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…

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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 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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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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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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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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