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South Africa Construction Market 2021-2025: Key Trends and Opportunities Post COVID-19 – ResearchAndMarkets.com

DUBLIN–()–The “Construction in South Africa – Key Trends and Opportunities to 2025 (Q1 2021)” report has been added to ResearchAndMarkets.com’s offering.

The South African construction industry is expected to grow by 6.1% in real terms in 2021 – up from a contraction of 16.5% in 2020. The industry’s output was severely affected by the outbreak of the Coronavirus (COVID-19) pandemic, with the country imposing a strict six-week lockdown in response to the outbreak. Reflecting the pandemic’s impact on construction activities, the industry’s value-add fell sharply by 21.6% year on year (YoY) in Q3 2020, which was preceded by a 33.3% contraction in Q2 2020, according to Statistics South Africa (Stats SA). The industry was also one of the hardest hits in terms of employment, losing 259,118 jobs at the end of Q3 2020, compared to that at the end of Q3 2019.

To help the economy recover from the crisis, in June 2020, the government announced a 10-year infrastructure investment plan worth ZAR2.3 trillion (US$124.7 billion), with investments planned in the housing, energy, agriculture, transport, water and sanitation and digital infrastructure sectors. Officials from the World Bank, African Development Bank (AfDB) and Development Bank of South Africa (DBSA) have pledged support for the infrastructure drive, which is expected to create over 1.8 million jobs over the next 10 years. In another positive development, in October 2020, the government rolled out an ambitious ZAR1.1 trillion (US$60 billion) Economic Reconstruction and Recovery Plan, which has four priority interventions: infrastructure investments; expansion of the energy generation capacity; job creation to support livelihoods; and industrial growth.

The industry is expected to register a marginal annual average growth of 0.2% between 2022-2025, with growth being restricted due to the government’s focus on fiscal consolidation, owing to the deteriorating fiscal situation in the country. The government expects the country’s public debt to rise from 63.3% of GDP in 2020 to 81.8% by 2021, and further increase to 93.5% by 2026. In October 2020, the treasury said that it aims to achieve a primary surplus by FY2025/2026, through cutting expenditures by nearly ZAR300 billion (US$16.3 billion) over the next three years; this will be done mainly through public wage cuts. Reflecting the effect of the COVID-19 pandemic on the construction industry, the total value of plans passed for building construction fell by 36.6% YoY in the first eleven months of 2020; this was preceded by annual declines of 11.8% and 1.1% in 2019 and 2018, respectively.

This report provides detailed market analysis, information, and insights into the South African construction industry, including –

  • The South African construction industry’s growth prospects by market, project type and construction activity
  • Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the South African construction industry
  • Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

This report provides a comprehensive analysis of the construction industry in South Africa. It provides –

  • Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in South Africa, featuring details of key growth drivers.
  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
  • Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
  • Listings of major projects, in addition to details of leading contractors and consultants

     

Key Topics Covered:

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context

3.1 Economic Performance

3.2 Political Environment and Policy

3.3 Demographics

3.4 COVID-19 Status

4 Construction Outlook

4.1 All Construction

4.2 Commercial Construction

4.3 Industrial Construction

4.4 Infrastructure Construction

4.5 Energy and Utilities Construction

4.6 Institutional Construction

4.7 Residential Construction

5 Key Industry Participants

5.1 Contractors

5.2 Consultants

6 Construction Market Data

For more information about this report visit https://www.researchandmarkets.com/r/4o5s45

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