South Africa has a large construction sector which is actually one of the largest in Africa currently worth about 15 billion USD, and also contributing 4% to the country’s GDP in 2018. Sadly, the construction sector has been in recession since 2017 and the overall growth rate in the past decade has been quite low at a rate of 2.47% between 2009 and 2018.
A struggling economy and 12% reduced spending on infrastructure by the government have greatly affected the sector’s growth over the past few years, and even in the current year 2019, some players in the sector report that business is shrinking further.
africon did some local research in the South African market, and this was aimed at achieving further insights about the construction industry as well as identifying suitable business partners in South Africa for our client.
Despite the current situation, there is likely to be an upturn soon because there are still many planned projects and the government has recently established a 27.5 billion USD infrastructure fund, with an expected infrastructure spending of 59 billion USD over the next 3 years.