South Africa Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast to 2028

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Published: March 29, 2024 Report Code: GDCN1352MR-ST

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GlobalData expects the South African construction industry to grow by 1.3% in real terms in 2024, supported by public and private sector investments to develop public infrastructure and renewable energy projects. Under the country’s Fiscal Year (FY) 2024-25 (April 2024 to March 2025) Budget, the government is estimated to spend ZAR2.4 trillion ($127.6 billion) in FY2024-25, with learning and culture receiving an estimated ZAR480.6 billion ($25.9 billion) in FY2024-25, followed by an expenditure of ZAR387.3 billion ($20.9 billion) for social development, ZAR265.3 billion ($14.3 billion) for community development, and ZAR255.4 billion ($13.8 billion) for economic development, among others. In 2024, South African National Roads Agency SOC Limited (SANRAL) is estimated to issue tenders worth ZAR6.43 billion ($346.2 million) for the maintenance and upgrade of the national road network in the country. By Q4 2023, SANRAL issued 77 tenders for various road construction projects and has received around 1,040 bids for these tenders.

GlobalData expects the construction industry in South Africa to register average annual growth of 3.7% during 2025-28, supported by investments in the renewable energy and the industrial sectors, with the government’s plans to increase the share of renewable energy in its total electricity mix from 11% in 2019 to 41% by 2030, while decommissioning 8-12GW of coal-fired power plants by the end of 2030. In March 2024, the Deputy President of South Africa Paul Mashatile, announced ZAR230 billion ($12.4 billion) spending into the infrastructure construction project pipeline. The government plans to boost infrastructure developments in the country by increasing public-private collaborations and partnerships with regional governments. In March 2024, Vestas, a Denmark based wind energy company, won a contract from South African Department of Energy for the construction of five new wind farm projects in the country with the combined capacity of 297MW. Growth over the forecast period will also be supported by investments under the updated Integrated Resource Plan (IRP), revised in January 2024, which outlines the necessity to build substantial new capacity with a mix of nuclear power, renewables, clean coal, and gas to ensure reliable electricity supply and achieve a net zero electricity sector by 2050.

GlobalData’s Construction in South Africa – Key Trends and Opportunities to 2028 (Q1 2024) 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.

Scope

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

• Historical (2019-2023) and forecast (2024-2028) 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

Reasons to Buy

• Identify and evaluate market opportunities using GlobalData’s standardized valuation and forecasting methodologies.

• Assess market growth potential at a micro-level with over 600 time-series data forecasts.

• Understand the latest industry and market trends.

• Formulate and validate strategy using GlobalData’s critical and actionable insight.

• Assess business risks, including cost, regulatory and competitive pressures.

• Evaluate competitive risk and success factors.

Table of Contents

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 Risk Profile

4 Construction Outlook

4.1 All Construction

– Outlook

– Latest news and developments

– Construction Projects Momentum Index

4.2 Commercial Construction

– Outlook

– Project analytics

– Latest news and developments

4.3 Industrial Construction

– Outlook

– Project analytics

– Latest news and developments

4.4 Infrastructure Construction

– Outlook

– Project analytics

– Latest news and developments

4.5 Energy and Utilities Construction

– Outlook

– Project analytics

– Latest news and developments

4.6 Institutional Construction

– Outlook

– Project analytics

– Latest news and developments

4.7 Residential Construction

– Outlook

– Project analytics

– Latest news and developments

5 Key Industry Participants

5.1 Contractors

5.2 Consultants

6 Construction Market Data

7 Appendix

7.1 What is this Report About?

7.2 Definitions

7.3 CRI Methodology

7.4 GlobalData Construction

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Table

Table 1: Construction Industry Key Data

Table 2: South Africa, Key Economic Indicators

Table 3: South Africa, Commercial Construction Output by Project Type (Real % Change), 2019–28

Table 4: South Africa, Top Commercial Construction Projects by Value

Table 5: South Africa, Industrial Construction Output by Project Type (Real % Change), 2019–28

Table 6: South Africa, Top Industrial Construction Projects by Value

Table 7: South Africa, Infrastructure Construction Output by Project Type (Real % Change), 2019–28

Table 8: South Africa, Top Infrastructure Construction Projects by Value

Table 9: South Africa, Energy and Utilities Construction Output by Project Type (Real % Change), 2019–28

Table 10: South Africa, Top Energy and Utilities Construction Projects by Value

Table 11: South Africa, Institutional Construction Output by Project Type (Real % Change), 2019–28

Table 12: South Africa, Top Institutional Construction Projects by Value

Table 13: South Africa, Residential Construction Output by Project Type (Real % Change), 2019–28

Table 14: South Africa, Top Residential Construction Projects by Value

Table 15: South Africa, Key Contractors

Table 16: South Africa, Key Consultants

Table 17: South Africa, Construction Output Value (Real, $ Million)

Table 18: South Africa, Construction Output Value (Nominal, ZAR Million)

Table 19: GlobalData Construction Market Definitions

Table 20: Risk Dimensions

Table 21: Ratings, Scores and Definitions

Figures

Figure 1: Sub-Saharan Africa, Construction Output (Real % Change), 2022–28

Figure 2: South Africa, Construction Output by Sector (Real % Change), 2022–24 and 2025–28

Figure 3: South Africa, Risk Summary

Figure 4: South Africa, Risk Regional Comparison

Figure 5: South Africa, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2019–28

Figure 6: South Africa, Construction Output Value, by Sector (Real, $ Million), 2019–28

Figure 7: South Africa, Construction Value Add (ZAR Billion, Constant 2015 Prices)

Figure 8: South Africa, Gross Fixed Capital Formation (ZAR Billion, Constant 2015 Prices)

Figure 9: South Africa, Employment in the Construction Industry (In Thousands)

Figure 10: South Africa, Total value of recorded building plans passed by larger municipalities, 2019 Constant Prices (ZAR Million)

Figure 11: South Africa, Value of Buildings Reported as Completed in Larger Municipalities, 2019 Constant Prices (ZAR Million)

Figure 12: South Africa, Construction Materials Price Index, Total Construction, December 2023=100

Figure 13: South Africa, Construction Projects Momentum Index

Figure 14: Sub-Saharan Africa, Construction Projects Momentum Index

Figure 15: South Africa, Commercial Construction Output by Project Type (Real, $ Million), 2019–28

Figure 16: South Africa, Commercial Construction Projects Pipeline, Value by Stage ($ Million)

Figure 17: South Africa, Total Value of Building Plans Passed for Office and Banking Space and Shopping Space, Current Prices (ZAR Million)

Figure 18: South Africa, Total Value of Building Plans for Office and Banking Space and Shopping Space Reported as Completed, Current Prices (ZAR Million)

Figure 19: South Africa, Income from Accommodation and Food Services (ZAR Million, Current Prices)

Figure 20: South Africa, Total Retail and Wholesale Trade Sales (Constant 2019 Prices, ZAR Billion)

Figure 21: South Africa, Industrial Construction Output by Project Type (Real, $ Million), 2019–28

Figure 22: South Africa, Industrial Construction Projects Pipeline, Value by Stage ($ Million)

Figure 23: South Africa, Manufacturing Value Add (ZAR Billion, Constant 2015 Prices)

Figure 24: South Africa, Total Value of Industrial and Warehouse Space Plans Passed, Current Prices (ZAR Million)

Figure 25: South Africa, Volume Index of Manufacturing Production (2019=100)

Figure 26: South Africa, Absa Purchasing Managers’ Index (PMI), Business Activity Index and New Sales Orders Index, Seasonally Adjusted

Figure 27: South Africa, Total Merchandise Exports (ZAR Billion)

Figure 28: South Africa, Volume Index of Mining Production (2019=100) and Mineral Sales (Current Prices, ZAR Billion)

Figure 29: South Africa, Infrastructure Construction Output by Project Type (Real, $ Million), 2019–28

Figure 30: South Africa, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)

Figure 31: South Africa, Construction Materials Price Index, Civil Engineering Construction, December 2023=100

Figure 32: South Africa, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2019–28

Figure 33: South Africa, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)

Figure 34: South Africa, Electricity, Gas and Water Value Add (ZAR Billion, Constant 2015 Prices)

Figure 35: South Africa, Electricity Production (GWh)

Figure 36: South Africa, Institutional Construction Output by Project Type (Real, $ Million), 2019–28

Figure 37: South Africa, Institutional Construction Projects Pipeline, Value by Stage ($ Million)

Figure 38: South Africa, Residential Construction Output by Project Type (Real, $ Million), 2019–28

Figure 39: South Africa, Residential Construction Projects Pipeline, Value by Stage ($ Million)

Figure 40: South Africa, Real Estate Value Add (ZAR Billion, Constant 2015 Prices)

Figure 41: South Africa, Gross Fixed Capital Formation Residential (ZAR Billion, Constant 2015 Prices)

Figure 42: South Africa, Total Value of Residential Building Plans Passed, 2019 Constant Prices (ZAR Million)

Figure 43: South Africa, Total Value of Residential Buildings Reported as Completed, 2019 Constant Prices (ZAR Million)

Figure 44: South Africa, Headquarters of Key Contractors (% of Total Project Pipeline)

Figure 45: South Africa, Headquarters of Key Consultants (% of Total Project Pipeline)

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