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Construction Monitor September 2026

September’s report points to a substantial pipeline of construction-related investment, although many projects have yet to reach construction. Transnet’s five-year capital programme totals R129.1bn, including R115.9bn for maintaining and rehabilitating existing infrastructure. ACSA announced a R21.7bn airport programme, while procurement began for the proposed Ngqura manganese corridor, which could require up to R44bn. Saldanha’s e-sustainable aviation fuel project reached a final investment decision, with US$100m in equity committed and construction expected to start in the first quarter of 2027. Other large proposals, including the R117bn SAPREF redevelopment and Cape Town’s Faure water scheme, remain at funding or procurement stages. Tender activity rose sharply in September, but SANRAL accounted for much of the increase: excluding its 89 tenders worth R5.2bn, activity was close to its usual level. Awards totalled R6.2bn, while cancellations reached R1.2bn, concentrated in KwaZulu-Natal and the Eastern Cape.

The underlying market remains uneven. Wholesale construction-material sales rose 16.4% year on year in July, but material-price inflation was 8.3% in August and domestic building-material production fell 5.3% in July. Private building-plan approvals grew just 1.8% by floor area in July, as residential approvals increased but non-residential approvals declined; public building tender values were down 16% year to date. Civil tenders increased 10% year to date to R40.7bn, while civil awards were R37.7bn, down 62% from the same period in 2025.

Falling manufacturing and mining output, 33.6% unemployment in the second quarter and higher interest rates add to the pressure on demand, costs and project delivery. However, the opportunity is visible in the pipeline; as investment pledges are seemingly surpassing expectations, with Kwazulu Natal as the most recent example. The key test remains whether projects can move into awards and sustained construction activity.

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