INFRASTRUCTURE DEVELOPMENT BOOM ON THE HORIZON ?
• AFRICAN BUZZ
Vitalii Khodzinskyi | Unsplash include language such as “ women are encouraged to apply ” in job advertisements , as this is seen to boost women application rates . Trimming down job requirements to just the most important qualifications can also encourage women to apply for roles .
According to Minerals Council South Africa member data , women ’ s participation in the mining sector grew from 12 % in 2018 to between 16 and 19 % in 2023 , agriculture is a sector which has also seen a growth in the number of young women participating over the last decade . Initiatives such as those put in place by organisations such as Harambee , BluLever and Kreishandwerkerschaft also contribute to creating pathways for women – especially young women – to start their journey in the working world .
However helpful these initiatives are , or how encouraging various incentives can be , the obstacles do remain , with an enormous amount of work needed to completely clear a path for women to take their rightful places in the working community . This is not a topic for just one conversation , nor is it a topic for one group to engage in . This is a fundamental issue that needs to be on the mind of every CEO , director , manager , HR representative and , indeed , every employer and workplace across all industry sectors in the country .
Yes , government does have a role to play in helping women overcome their challenges . Elders and extended family can certainly help as well when it comes to practical issues such as childcare and housework . What is clear , is that this disparity is not going to change with just one element in the change being tweaked . It requires a systematic overhaul of outdated work models and attitudes , as well as a willingness to provide the right kind of support to young women .
Source : Breaking Barriers Quarterly Report , supplied by Harambee
INFRASTRUCTURE DEVELOPMENT BOOM ON THE HORIZON ?
Compiled by Sharyn Macnamara
African governments are now committing billions of dollars to infrastructure development , and the continent is said to be entering a “ 20- to 30-year infrastructure development boom ”. This comes despite the substandard condition of infrastructure in terms of electricity , water , roads as well as information and communications technology ( ICT ) in many regions of Africa that has stunted national economic growth by at least two percentage points annually , according to the World Bank . This substandard in infrastructure has curtailed business productivity by as much as 40 % in the past . 1 While these growing infrastructure needs and positive ensuing business opportunities bode well for both the construction and the mining industry in the region , drilling down locally into the ‘ now ’, there are some major challenges to be tackled along the way .
The local drill down The annual February AfriSam Budget Breakdown event 2 is usually a great indicator of the status and outlook for the South African construction sector , while the Minerals Council South Africa ’ s Facts and Figures Pocketbook is a clear reflection of the performance of the mining sector in the year prior . The mining sector is holding its own as usual , despite the under performance of the ports , Transnet , Eskom and instability caused by crime and corruption . There was , however , a continuing sombre tone at this year ’ s AfriSam event .
A regular contributor to the Budget Breakdown , Econometrix chief economist Dr Azar Jammine , highlighted that the construction and building industries were still in the doldrums , with little sign of emerging from it in the short term . The low economic growth rate and the poor level of gross fixed capital formation were indicated as the key culprits .
Near-term challenges While the Budget Speech this year contained a theoretical commitment by government to focus on infrastructure and private sector capital investment in South Africa had shown some improvement ( mainly in machinery and equipment ), he noted that employment in the construction industry is now 40 % down from 2019 figures . He added that the sector ’ s contribution to national employment is now at approximately 4.5 %, having been over 6.5 % around 2017 . Retail sales at builders ’ merchants rank as the weakest segment of the retail sector and investment in construction – including civil engineering – and building has declined 40-45 % over the past decade . The slight recovery in residential building between 2020 and 2022 , as a result of the COVID-19 pandemic , has faded , with the ‘ semi-gration ’ of many South African professionals to the Western Cape . This province had recently taken the lead over Gauteng in terms of residential building plans passed , although there had been a slight rise in numbers in Gauteng at the time , which may point to a revival .
“ The big loser is in the commercial space , which has fallen by 80 % in terms of plans passed ,” said Jammine . He added that although encouraged by the Business Leadership South Africa ’ s workstreams to work with government on energy , transport and crime , “ I don ’ t need to remind members of this audience of the debilitating effect that the construction mafia is having .”
Medium to long term growth story Despite near-term challenges , the medium to long term growth story in South Africa remains intact . The South Africa Construction Industry Report 2024 forecasts that the construction industry in South Africa is expected to grow by 4.8 % to reach R160.65-billion in 2024 . 4 The growth momentum is expected to continue over the forecast period , recording a Compound Annual Growth Rate ( CAGR ) of 1.8 % during 2024-2028 and it is anticipated that the construction output in South Africa will reach R188.76-billion by 2028 .
Factors contributing to sector lethargy If this is the forecast , why the lethargy now ? On 11 June 2024 , JSE-listed mid-tier mining and materials company , Afrimat released the findings of its Afrimat Construction Index ( ACI ) 5 for the first quarter of 2024 . Economist Dr Roelof Botha , who compiles the ACI on behalf of the company , points to the following combination of factors as having contributed to the lethargy , including :
8 • African Mining • January 2025 www . africanmining . co . za