COMMENT
O
Planting the
seed of growth
ne cannot help feeling a little confused by what is elected President Ramaphosa’s promise to reignite
happening in the plant sector, if the recently held infrastructure spending, and waiting for foreign investment to
bauma CONEXPO Africa 2018 is anything to go by. regain confidence in a country that has been all but unravelled
Talking with many of the 400-odd exhibitors, on one hand,
the industry is quiet; not dead, just quiet, while others say that
by the previous leadership’s shenanigans.
International confidence in South Africa’s construction
demand for their range is climbing ever upward. Specifically, industry plunged to a 17-year low in 2017, as investors baulked
within the Far Eastern brands like Shantui and LiuGong, which at the political uncertainty, slow economic growth, and a
continue to dent the premium brands on operational costs and flailing currency.
have cut swathes into Africa on foreign-backed projects.
On an international level, in the Global Construction
Nevertheless, Statistics South Africa cited in a report
that the number of building plans passed in 2016 rose by
Machinery Market 2018–2022 report, analysts forecast the 6% compared to the previous year, while the total value of
global construction machinery market to grow at a CAGR of newly constructed buildings grew by 8.3%. Key drivers for
8.07% during the period 2018–2022. a recovery in the South African construction sector include
Spurring on this growth is the trend for skyscrapers and
urbanisation and government investment in low-cost housing,
mixed-use developments. Urbanisation is the natural evolution renewable energy projects, and transport and logistics
of a growing global population, which gives rise to the need infrastructure.
for infrastructure, such as multi-family homes, apartment
While those all bode well for construction, the real
blocks, hospitals, hotels, and offices. This has resulted in drawcard could well be Ramaphosa. The new president has
land becoming increasingly scarce and thus the trend for floated in on a wave of ‘Ramaphoria’, which has even had
skyscrapers. ratings agency Moody’s labelling him “credit positive” in a land
Also, the report points out, government spending in public
infrastructure, such as roads, railroads, and bridges, continues
that has been bowing under more than its share of negativity.
The industry hopes that the seed of confidence has been
to be a prime driver for growth. Substantial spending in public sown and that foreign investment will once again flow into
infrastructure is one of the key tools for fiscal stimulus, playing the country.
a vital role in stabilising an economy and facilitating national
development.
While infrastructure spend enables economic growth and
provides employment opportunities, it also facilitates the
delivery of important, key services, including housing, energy,
and a safe water supply. Multinational companies worldwide
are also drawn to invest in a country that has efficient,
strong, and updated public infrastructure, as it improves the
living standards of its citizens and creates an environment of
stability.
Back home at bauma, however, OEMs big and small voiced
an atmosphere of waiting — waiting for the local construction Kim
sector to take off on the coat-tails of South Africa’s newly Editor
MAY 2018
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