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955213

Construction in South Africa - Key Trends and Opportunities to 2025 (Q3 2021)

Published: | GlobalData | 55 Pages | Delivery time: 1-2 business days

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Construction in South Africa - Key Trends and Opportunities to 2025 (Q3 2021)
Published: September 30, 2021
GlobalData
Content info: 55 Pages
Delivery time: 1-2 business days
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  • Description
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Description

GlobalData has revised down the estimated growth for South Africa's construction industry in 2021, with the industry now expected to grow by 4.6% in real terms this year, from the earlier estimate of 6.2%. This downward revision is attributed to the third wave of the Coronavirus (COVID-19) pandemic, and the subsequent tightening of restrictions to contain the spread of the highly contagious Delta variant of the virus. According to Statistics South Africa (Stats SA), the construction industry's value add fell by 2.9% year-on-year (Y-o-Y) in the first half of this year (H1 2021). Although the industry returned to growth in Q2 2021, the expansion mostly reflects the low base effect during the same period of last year. In the second half of this year, the industry's output will be supported by the gradual recovery in investor and consumer confidence amid the relaxation of COVID-19 restrictions, coupled with the rise in building plans passed for residential buildings. However, the civil unrest which erupted in July 2021 is expected to have affected manufacturing and export activities, thereby weighing on investor confidence.

The industry is expected to register an annual average growth of 4.1% between 2022-2025, supported by investments on transport, energy, residential, water, telecommunication, health and education projects. In the latest budget unveiled in February 2021, the government announced a plan to allocate ZAR791.2 billion (US$49 billion) towards public-sector infrastructure spending over the Medium-Term Expenditure Framework (MTEF) period, which runs from the Fiscal Year (FY) 2021/2022 (April 2021 to March 2022) to FY2023/2024. Of the total, it allocated ZAR287 billion (US$17.8 billion) towards the transport and logistics sector, ZAR149.9 billion (US$9.3 billion) towards the energy sector and ZAR120 billion (US$7.4 billion) towards the water and sanitation sector, among others.

Over the long term, the industry's output will be supported by investments on the 10-year ZAR2.2 trillion (US$133 billion) infrastructure plan unveiled by the government last year. The plan comprises 276 projects in various sectors, including transport, energy, housing and water. Of the total, ZAR1 trillion (US$62 billion) will be spent over the next four years alone. The industry's output over the long term will also be supported by the government's plan to produce 26% of the total electricity from renewable energy sources by 2030. To achieve this goal, the state-owned electricity public utility company Eskom plans to invest ZAR106 billion (US$6.6 billion) on the construction of wind farms and solar plants until 2030.

GlobalData's Construction in South Africa - Key Trends and Opportunities to 2025 (Q3 2021) report provides detailed market analysis, information and insights into South Africa's construction industry, including -

  • South Africa's 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 South Africa's 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 (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

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
Product Code: GDCN0738MR

Table of Contents

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 COVID-19 Status
  • 3.5 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
  • Contact Us

List of Tables

List of Tables

  • 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), 2016-2025
  • Table 4: South Africa, Top Commercial Construction Projects by Value
  • Table 5: South Africa, Industrial Construction Output by Project Type (Real % Change), 2016-2025
  • Table 6: South Africa, Top Industrial Construction Projects by Value
  • Table 7: South Africa, Infrastructure Construction Output by Project Type (Real % Change), 2016-2025
  • Table 8: South Africa, Top Infrastructure Construction Projects by Value
  • Table 9: South Africa, Energy and Utilities Construction Output by Project Type (Real % Change), 2016-2025
  • Table 10: South Africa, Top Energy and Utilities Construction Projects by Value
  • Table 11: South Africa, Institutional Construction Output by Project Type (Real % Change), 2016-2025
  • Table 12: South Africa, Top Institutional Construction Projects by Value
  • Table 13: South Africa, Residential Construction Output by Project Type (Real % Change), 2016-2025
  • 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, US$ 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

List of Figures

List of Figures

  • Figure 1: Sub Saharan Africa, Construction Output (Real % Change), 2020 and 2021
  • Figure 2: South Africa, Construction Projects Pipeline by Sector (US$ Billion)
  • Figure 3: South Africa, COVID-19 Confirmed Cases
  • Figure 4: South Africa, Risk Summary
  • Figure 5: South Africa, Risk Regional Comparison
  • Figure 6: South Africa, Construction Output Value (Real, US$ Billion, 2017 Prices and Exchange Rate), 2016-2025
  • Figure 7: South Africa, Construction Output Value, by Sector (Real, US$ Million), 2016-2025
  • Figure 8: South Africa, Construction Value Add (ZAR Billion, Constant 2015 Prices), % Change YoY
  • Figure 9: South Africa, Number of People Employed in The Construction Industry, In Thousands, % Change YoY
  • Figure 10: South Africa, Gross Fixed Capital Formation (Constant 2015 Prices, % Change YoY)
  • Figure 11: South Africa, Value of Buildings Reported as Completed, 2015 Constant Prices, In ZAR Million
  • Figure 12: South Africa, Value of Building Plans Passed, 2015 Constant Prices, In ZAR Million, % Change YoY
  • Figure 13: South Africa, Construction Projects Momentum Index
  • Figure 14: Middle East and Africa, Construction Projects Momentum Index
  • Figure 15: South Africa, Commercial Construction Output by Project Type (Real, US$ Million), 2016-2025
  • Figure 16: South Africa, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)
  • Figure 17: South Africa, Total Value of Building Plans Passed for Office and Banking Space and Shopping Space, In ZAR Million, Current Prices
  • Figure 18: South Africa, Foreign Arrivals, In Thousands
  • Figure 19: South Africa, Income from Accommodation and Food Services, in ZAR Million (Current Prices)
  • Figure 20: South Africa, Total Retail and Wholesale Trade Sales at Constant 2015 Prices, In ZAR Billion
  • Figure 21: South Africa, Industrial Construction Output by Project Type (Real, US$ Million), 2016-2025
  • Figure 22: South Africa, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)
  • Figure 23: South Africa, Manufacturing Value Add (ZAR Billion, Constant 2015 Prices), % Change YoY
  • Figure 24: South Africa, Volume Index of Manufacturing Production (2015=100) and Total Value of Manufacturing Sales (In Current Prices), % Change YoY
  • Figure 25: South Africa, Absa Purchasing Managers' Index (PMI), Business Activity Index and New Sales Orders Index, Seasonally Adjusted
  • Figure 26: South Africa, Volume Index of Mining Production (2015=100) and Mineral Sales (In Current Prices), % Change YoY
  • Figure 27: South Africa, Total Merchandise Exports (ZAR Billion), % Change YoY
  • Figure 28: South Africa, Infrastructure Construction Output by Project Type (Real, US$ Million), 2016-2025
  • Figure 29: South Africa, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)
  • Figure 30: South Africa, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2016-2025
  • Figure 31: South Africa, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)
  • Figure 32: South Africa, Electricity Production (in Gigawatt-hours), % Change YoY
  • Figure 33: South Africa, Institutional Construction Output by Project Type (Real, US$ Million), 2016-2025
  • Figure 34: South Africa, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)
  • Figure 35: South Africa, Residential Construction Output by Project Type (Real, US$ Million), 2016-2025
  • Figure 36: South Africa, Residential Construction Projects Pipeline, Value by Stage (US$ Million)
  • Figure 37: South Africa, Value of Residential Building Plans Passed, in ZAR Million, Constant 2015 Prices, % Change YoY
  • Figure 38: South Africa, Value of Residential Buildings Reported as Completed, in ZAR Million, Constant 2015 Prices, % Change YoY
  • Figure 39: South Africa, Headquarters of Key Contractors (% of Total Project Pipeline)
  • Figure 40: South Africa, Headquarters of Key Consultants (% of Total Project Pipeline)