“Building Delays, Budget Chaos—Yet Billions in Projects Move Forward!”
While the value of civil projects awarded surged by more than 200 percent y-y in February 2025, delays in public sector payments and budget approvals are creating cash flow challenges for contractors. Many have faced payment backlogs since October 2024, leading to project suspensions and financial instability. Despite these setbacks, R24.6 billion worth of projects were awarded in January 2025, with major road and infrastructure projects driving growth. Cement, ready-mixed concrete, and aggregates remain the most in-demand materials, while price-conscious buyers favour Falcon Cement, the most affordable option at R96.46 per 50kg. With construction material inflation slowing to 1.5 percent, it may be an opportune time for suppliers and contractors to capitalize on market opportunities. Building stronger supply chain relationships, offering direct material deliveries, and improving service quality are a few ways to enhance competitiveness. Materials that supported the lower increase, include steel, granite and sandstone, paint and to a lesser degree cement that fell by 0.2 percent y-y in January 2025.
Click here to download the February 2025 overview (available to PSS Subscribers only)
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