Infrastructure & Construction
The South African perspective
On a national scale, the construction industry is a significant contributor to employment and growth in South Africa however the industry has been in a slump since the 2010Soccer World Cup projects. A good indicator of the industry’s performance would be the infrastructures spend by the public sector. The South African Government’s ongoing National Development Plan and its continued commitment to public infrastructure investment of R810 billion (R847 billion 2014) over the next few years are still positive. However, the reduction in planned expenditure over the next three years highlights the tough economic environment experienced by the country and therefore by the heavy construction industry, which benefits from infrastructure development.
The following report provides good insight into the South African Construction sector:
The Eastern Cape perspective
The construction sector together with finance drove the growth in the Eastern Cape in 2014. The secondary sector, consisting of manufacturing, construction and utilities, is 18.5% of total GDP output in 2013. Manufacturing is the largest sub-sector, contributing 69.2% towards the sectoral total, and 12.8% of GDP. Manufacturing grew by 0.9%. Construction, contributed 18% of the secondary sector’s GDP and drove growth in this sector at a high of 2.7% growth for the period.
In Buffalo City the construction sector contributes 2.6% to the city’s economy.
The Eastern Cape Socio-Economic Consultative Council (ECSECC) has been mandated to develop a 10-Year Infrastructure Plan which will cover a number of clusters and sectors including social infrastructure; health; education; housing; sports; arts and culture and economic infrastructure, which includes agriculture, rail, ports, roads and aviation; as well as energy sector infrastructure, tourism, ICT and infrastructure for industrial zones. Municipal infrastructure is also included in the study, including water and sanitation, electricity, access roads and social amenities.Infrastructure spending has been prioritised for the Eastern Cape, key areas of spending include:
- Road and Rail infrastructure
- Bulk Water
- Eastern Cape Socio-Economic Outlook 2015
- Highlighting trends in the South African construction industry (November 2015)