Slow recovery in private sector building demand, off dismally low levels, offset by weaker civil construction tendering activity.
The February 2025 Construction Monitor highlights South Africa’s construction sector as facing ongoing economic and fiscal pressures, with modest growth, weak investment, and delayed public projects posing risks to recovery. While some progress is being made through increased private sector participation and major infrastructure announcements, challenges such as mismanagement, funding shortfalls, and local government inefficiencies continue to hamper momentum. Despite a slight interest rate cut and optimistic projections for fixed investment, the sector remains constrained by slow recovery, low confidence, and uneven provincial performance. Postponements of projects eased somewhat in January 2025, but cancellations of building projects continue to pose a risk. Kwazulu Natal showed the strongest recovery in terms of private sector building approvals in 2024, signalling renewed investor confidence in the province.
Click here to download the February 2025 Construction Monitor (available to subscribers only)
