• Version
• Download 1
• File Size 10.15 MB
• File Count 1
• Create Date July 16, 2024
• Last Updated July 16, 2024

Estimated Civil Tender Values: June 2024

More robust decline in civil tenders recorded in June 2024, as annual nominal increase slows to 5 percent in the first six months of 2024

Tender values in terms of civil projects declined at a more robust rate in June 2024, down 32 percent y-y, with weaker levels reported across most of the provinces, except North West and Northern Cape. Western Cape showed the steepest decline as tender values fell by R.16bn compared to the same period in 2023. The value of road projects out to tender fell 38 percent y-y, with a 17 percent decline reported in terms of the value of water projects. Thanks to a more robust month in April (when tender values rose by more than 100 percent), the overall performance for the 2nd quarter of 2024 is still marginally up by 6 percent y-y, following a 5 percent increase in the 1st quarter. Mpumalanga recorded the highest increase in Q2, with values up R2bn, to around R4bn, followed by a R1.6bn increase in Kwazulu Natal to R6.2bn. Western Cape was the worst performing province, as tender values slumped by R2bn for the 2nd quarter, a 45 percent y-y decline (nominal).

Given the more muted performance recently, the annual nominal increase in tender values for the first six months of 2024, slowed to 5 percent (or R2.7bn) to R51.5bn, from 15 percent up to May, as the more robust increase in Kwazulu Natal, Mpumalanga, Northern Cape and Limpopo is offset by weaker performances in Gauteng, Western Cape and Eastern Cape. In real terms, tender values have declined by 2 percent y-y for the first six months of 2024. The value of civil projects awarded fell 14 percent y-y in the first six months, coming off a higher base in 2023, following the release of several multi billion road contracts by SANRAL with projects over R13bn awarded in January 2023.

The value of road tenders increased by 27 percent (or R5.4bn to R25.4bn), while the value of water related construction tenders fell 8 percent y-y in the first six months of 2024 to R14.2bn.  The pace in bridge construction also slowed, although tender values are still up by 104 percent (or R776m) to R1.5bn.

 

Attached Files