In May 2025, South Africa’s public sector building pipeline continued to show signs of weakness, with the total estimated tender value for the month reaching R916 million—an 8.7% year-on-year increase, but still the lowest in three months and driven largely by a low base effect. While provinces like Gauteng and the Western Cape recorded strong growth in public tender values, national figures remain subdued, with total public building tender values down 48% over the last 12 months. The overall building construction pipeline—combining public tenders and private approvals—fell 10% year-on-year. The private sector’s tentative recovery is being led by the Western Cape, which saw a 13% rise in approvals in April and continues to dominate national totals, while provinces like Gauteng and Limpopo posted sharp declines. Most public building tenders issued in May were smaller projects (CIDB Grades 3–6), with no Grade 9 tenders recorded. Despite slightly improved economic fundamentals—such as an interest rate cut by the SARB—the fiscal constraints on government and regional disparities in infrastructure investment remain key challenges.. .read the monthly review here (available to subscribers)
