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Estimated Civil Tender Values: December 2024

Civil tender activity remain subdued in Q4 of 2024

Following robust performance in tender activity and estimated tender values during 2023 and into the first half of 2024, activity levels have shown a concerning decline during the last six months of 2024. The estimated value of civil projects released out to tender fell by 37 percent and 33 percent y-y during the last two quarters of 2024, bringing the overall decline for 2024 to 17 percent y-y. This means tender values fell by around R18bn in 2024 to R86bn, compared to R105bn in 2023.  Provincial disparities are always at play, but majority of the provinces across the country recorded lower tender values overall in 2024, with Northern Cape the only exception. Gauteng showed the steepest decline followed by Western Cape, Free State and Mpumalanga (the latter two provinces coming off a higher base in 2023).

The slowdown in tender values during the last six months of 2024 is concerning, particularly at the offset of what is perceived to be a more prosperous 2025 for the local construction sector and promises of creating a more investor friendly environment that is more conducive to accelerate broad base investment across the country. Unfortunately challenges remain in tems of public sector financial constraints, a slow pace of privatisation and public-private partnerships and persistent political instabilities mainly within provincial and local governments.

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