Real Estate Investor Magazine July/ Aug 2020 July 2020 | Page 42

INDUSTRIAL
Rebuilding
the economy
through
construction
Lockdown-hit industry
back on building sites
With the relaxation of lockdown restrictions, it’s back to work for
the construction industry, one of our major economic contributors
due to the labour-intensive nature of construction activities. In
fact, it has been touted as one of the key sectors the government
should prioritise to ramp up job opportunities in an effort to
revive the South African economy.
I
t’s an industry employing hundreds of thousands of
workers that was hit hard by the Covid-19 pandemic. There
have been suggestions that the impact could result in a
year-on-year contraction of 18%, which represents 4% of
GDP. Potentially, this could mean the loss of up to 140 000
formal jobs, according to construction market intelligence
firm Industry Insight.
For these reasons alone, the reactivation of active
construction projects was imperative both for job creation
and for the many South African homeowners whose lives
have been severely impacted. It is also what prompted the
industry itself to take action.
Cobus Bedeker, MD of Evergreen Property Investments
says, “The construction sector is already working together
to respond to the impact of Covid-19 and ensure the
sustainability of this industry over the coming months so as
to play its part in our country’s economic recovery.”
President Ramaphosa, speaking recently at the opening
of the inaugural Sustainable Infrastructure Development
Symposium of South Africa (SIDSSA), pointed out that even
prior to the pandemic, South Africa’s dwindling infrastructure
investment over the years had caused great hardship for the
construction industry. He said that, as construction services
are procured now, the government could assess project
proposals to ensure the job creation impact is maximised.
In response to Covid-19, the construction sector has
since formed a Construction Sector Covid-19 Task Team
composed of contractors (main and subcontractors), built
environment professional services firms, property developers,
manufacturers, professional associations and regulators.
38 JULY/AUGUST 2020 SA Real Estate Investor Magazine