According to new research, the construction sector in South Africa is expected to grow by 6.2 percent in real terms this year after four years of decline. According to a new report from ResearchAndMarkets.com, Construction in South Africa – Key Trends and Opportunities to 2025, the construction industry in South Africa is set to rebound after years of decline, including a 20% drop last year during the Covid-19 pandemic (Q2 2021).
Originally posted on Sep 20, 2021 – 16:08
The expected growth is due in part to the sector’s sharp drop in performance last year, following South Africa’s initial six-week lockdown following the onset of the Covid-19 pandemic.
In the first quarter of 2021, the sector’s value add was down 17.5% on a year-on-year basis, following a fall of 19.8% in the final quarter of 2020, according to Statistics South Africa.
Construction was also one of the country’s most impacted sectors in terms of employment, with over 7.2 million individuals classed as unemployed, bringing the unemployment rate in the first quarter of this year to 32.6%.
In its 2021 budget, the government announced plans to plug the economy with approximately USD 45.3 billion for infrastructure development, including the advancement of energy, agriculture, transport, housing, water and sanitation and digital infrastructure.
The infrastructure investment initiative attracted support from the World Bank, African Development Bank and Development Bank of South Africa. The investment programme is expected to create more than 1.8 million employment opportunities over the next decade.
Between 2022 and 2025, South Africa’s construction industry is expected to experience an average yearly growth of 3.4%, as the government increases its focus on infrastructure and energy sector investment initiatives.
The government anticipates South Africa’s public debt to increase from 63.3% GDP in 2020, to 81.8% by the end of this year, and 93.5% by 2026.
Last year, in-house and private practice lawyers across Africa said they believe that the covid 19 will have a transformative on legal technology on the continent, at around the same time that an annual report showed Africa’s financial markets had made improvements throughout 2020, despite the Covid-19 pandemic.