2023 kicked off with a continuance of load shedding that escalated to an average of stage 4 (from an average of stage 2 in 2022), SARB’s increase of the repo rate to 7.25 percent, lower GDP growth outlook and talks of declaring a national state of disaster. According to Reserve Bank estimates, load shedding is…
Provincial departments increased expenditure on infrastructure in the 3rd quarter of 2022 to the highest level in at least 3 years, the construction labour force expanded by 3.9 percent y-y, while the estimated rand value of civil projects out to tender increased by over 70 percent y-y during the month of October. Approvals for building…
Limpopo, Western Cape and Kwazulu Natal took the lead in the estimated value of civil tenders released during the month of October 2022. Tender values showed a notable increase in October, exceeding R13bn, with a 73 percent y-y increase.
The annual rate of increase slowed to 11.2 percent in September 2022, from an average of 13.4 percent in 2021. However, the price trends are highly diverse between the different materials, as bricks increased by 1.8 percent, cement by 9.3 percent and steel slowed to an increase of 11.5 percent. The anticipated slowdown in building…
Despite being vague, the Minister of Finance confirmed the need for higher infrastructure expenditure. In a bold move, government agrees to take over (or part thereof) debt obligations of Eskom and Sanral, but there will be a cost. Please login and download our review on the impact of the MTBS on the local construction sector.
The Estimated Tender Value index continued to decline and fell for the 5th consecutive month in June 2022, down 1.5 percent m-m to 148.9, following the 3.9 percent and 4.9 percent decline in the previous two months. In real terms civil tender values fell by 30 percent y-y during the first six months of 2022…
Liquidations in the construction sector was at the highest monthly level in April 2022 since September 2018, with a total of 13 liquidations recorded for the month. The construction sector is bearing the brunt of lack of infrastructure spending and weak investor demand as liquidations increased by 44 percent y-y in the first four months…
The Estimated Tender Value index continued to decline and fell for the 3rd consecutive month in April 2022, down 5 percent to 158.1, following the 7 percent and 1 percent decline in the previous two months. In real terms civil tender values fell by 12 percent y-y during the first four months of 2022 compared…
Capital expenditure by metropolitan areas on key departments important to the construction sector, fell by 10.6 percent y-y in real terms in the 2nd quarter of 2021/22 (as at December 2021). A full breakdown by Metropolitan area and department (including housing, water, energy and roads) is available and can be downloaded via user access codes.
Actual capital expenditure by metropolitan areas on infrastructure related items, such as housing, roads, water and energy fell by 5 percent y-y in September 2021, despite an 11 percent increase in budgetary allocations for the 2021/22 period to R24.8bn. Metro’s managed to spend only 75 percent of their “construction related capital expenditure budgets” in the…
Private sector building approvals weakened during May 2026, with…
What is the Provincial Construction Pipeline? The Provincial Construction…
