DUBLIN–(BUSINESS WIRE)–The “South Africa Construction Market Report” report has been added to ResearchAndMarkets.com’s offering.
South Africa has the third-largest economy in Africa. Additionally, it is Africa’s most industrialized, technologically advanced, and diversified economy.
The country’s relative macroeconomic stability, stable democratic government, and well-developed infrastructure have given rise to a dynamic investment environment and established its position as a strategic gateway to other markets in the Southern African region and the rest of the African continent. Infrastructure investment is a central pillar of the South African government’s post-COVID-19 economic recovery plans.
The 2022 budget allocated R812.5 billion (circa US$51.7 billion) over the next three years for infrastructure investment. The government’s massive spending on major infrastructure projects is expected to drive a construction boom in the country. This report provides an overview of the South African construction market.
The country’s construction industry was also one of the hardest hits by the COVID-19 pandemic disruptions in terms of employment, losing 259,118 jobs at the end of Q3 2020.
As part of efforts to revive the economy following the devastations of the COVID crisis, the South African government is implementing an economic reconstruction and recovery plan underpinned by massive investment in infrastructure – with a construction project pipeline worth R340 billion in industries such as energy, water, transport and telecommunications.
The government is also implementing a National Infrastructure Plan 2050 (NIP 2050). It aims to achieve an investment/GDP ratio of 30% to meet the infrastructure finance gap for public infrastructure, which is estimated at R2.15 trillion (circa US$140 billion) up to the year 2040. The NIP 2050 emphasises blended project finance and public-private cooperation to finance the delivery of public infrastructure.
The 2022 budget presented on 23 February 2022 allocated an amount of R812.5 billion (circa US$45.3 billion) to public-sector infrastructure