Creamer Media's ‘Construction 2024/25: Adapting to new realities’ report explores key aspects of the South African construction sector, offering a comprehensive overview of its challenges and opportunities. The report examines the sector's prolonged decline, driven by reduced demand for office and retail developments, currency depreciation, unsustainable price wars, and delayed or nonpayment by public-sector clients. Broader issues, such as high lending rates, municipal dysfunction, and the rise of the construction mafia, have compounded these difficulties, forcing many companies, particularly smaller contractors, to scale back operations or exit the market. Additionally, flawed procurement practices, narrow profit margins, and substandard project execution continue to hinder progress, despite the sector's crucial role in South Africa’s economic recovery.
While these challenges persist, signs of recovery are emerging. Consulting firm GlobalData anticipates growth in the construction sector starting in 2025, driven by investments in renewable energy, transport, and industrial infrastructure. The updated Integrated Resource Plan, which targets ambitious renewable energy and capacity goals, alongside initiatives to expand special economic zones, positions the industry for steady growth. With reforms in procurement practices and efforts to address systemic issues, the construction sector is poised to regain its momentum and contribute significantly to South Africa's long-term development.
This report is a summary of information published in Engineering News and Mining Weekly, as well as of information available in the public domain over the past 12 months. The report does not purport to provide analysis of market trends.
The information in this report is correct as of November 26, 2024.
Published on 20 December 2025.