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• Create Date October 30, 2024
• Last Updated October 30, 2024

Provincial Construction Pipeline Dashboard July 2024

The Provincial Construction Pipeline Model (PCPM) monitors building and civil construction performance at a provincial level, in terms of actual and projected construction activity. It includes estimates for private and public sector construction activity, based on project approvals, tenders and awards. The PCPM is updated quarterly with full in-depth reviews on a bi-annual basis. 

Based on key construction indicators released as at July 2024, the annual change in the Construction Pipeline Model fell into negative territory, down 7.2 percent y-y, from a 4.1 percent increase in 2023. . Significant provincial variations are evident, with provinces such as KwaZulu-Natal, the Free State and to a lesser degree Northern Cape experiencing above-average increases. Conversely, the pipeline in Gauteng, the Western Cape, North West Province and Limpopop has contracted over the past 12 months. Notably, the rate of decline in the Western Cape has accelerated to -23 percent, on par with levels reported in Gauteng.

The investment outlook for 2024 remains favorable, although risks are weighing on the downside. A slowdown in the value of civil projects awarded, with a moderate 2 percent nominal increase over the last 12 months, is aggrevated by an increase in project postponements and a slowdown in tender activity post-election period.  The value of civil tenders has declined by 6 percent over the last 12 months. A strong increase in public sector building activity related to social infrastructure expenditure in the run up to the 2024 elections, resulted in a 36 percent increase in the estimated value of the pipeline, although recent activity also suggests an iminent slowdown, post-election.

Full provincial details are provided in the dashboard.

 

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