Value of Public Building Tenders plummet in Election Month (May 2024)

In May 2024, the value of public sector building tenders fell below R900 million from over R2 billion in April 2024 and May 2023. Despite this decline, tender values for the first five months of 2024 still showed a 54 percent year-over-year increase. The Eastern Cape and KwaZulu-Natal led in tender values for May 2024, with the Eastern Cape also showing a significant year-over-year increase in awarded projects. The decline in May’s tender activity is likely due to the election period, with government departments focusing on social infrastructure spending to influence voter perceptions. Post-election, tender activity generally slows as new administrations reassess and reprioritize expenditures. Monitoring public sector building activity is crucial, especially with the sharp decline in private sector building approvals expected to impact construction over the next 12 to 18 months. Subscribers can download the provincial data here