EDITORIAL Construction industry forecast
According to Roelof van den Berg, CEO of the Gap Infrastructure Corporation( GIC), the positive outlook for South Africa’ s construction industry is driven by R322.2 billion planned for public infrastructure projects this year. This growth is underpinned by technological advancements and evolving market dynamics that are fostering important innovations. Additionally, new streamlined regulations for public-private partnerships( PPP) are reducing project approval times, while the government’ s renewed focus on transforming South Africa into a“ construction site” further accelerates the industry ' s expansion.
“ These changes mark the start of what the late and former Finance Minister Tito Mboweni is said to have called the‘ infrastructure years’ – a period that could reshape the country’ s built environment more dramatically than at any other time in the past decade,” he says.
Intense competition within the industry means that companies will have to rely more heavily on advanced tools and AI to streamline processes, optimise procurement, and protect profit margins.
“ The benefit of this for communities could be exponential. Not only does it mean expanded service delivery, but the construction industry, as a major employer and economic contributor, will also thrive. A rapid influx of new projects supported and driven by public-private partnerships could act as the lever needed to accelerate economic growth.” year will strategically target specific developmental areas critical to progress. The top three areas of spending will be transport and logistics, with R115.1 billion allocated to strengthening port, rail, and road infrastructure; energy, with R70.5 billion; and water and sanitation infrastructure, with R57.6 billion.
Rises in public spending will be further complemented by the commitment reinforced in the recent Medium Term Budget Policy Statement( MTBPS), which promised far-reaching regulatory reforms to reduce complex red tape, stimulate infrastructure investments, and expedite project rollouts.
Additionally, the Budget Facility for Infrastructure( BFI) will shift from one annual window to continuous evaluation, ensuring a more regular and predictable pipeline.
“ These changes mean fewer barriers, predictable timelines, a healthier project pipeline, and more stable deals – all translating into stronger incentives and better margins for private infrastructure developers, as well as greater value for public sector clients,” notes Van den Berg.
Purpose-built homes for solar and EV integration
In terms of innovations, the growing affordability of solar systems, and the rising emphasis on environmentally-friendly energy solutions, it’ s likely that there will be a strong demand for“ green” homes.
“ In response, 2025 will likely see a more pronounced shift toward integrating renewable energy systems directly into the design and construction of new homes,” he states.
Looking to the year ahead, Van den Berg points to three trends likely to shape and influence the industry:
Increased government investment and regulatory changes
Building on the reported 82 strategic integrated projects( SIPs) valued at R437 billion currently under construction, the industry anticipates substantial increases in public infrastructure spending, with significant implications for job creation and socioeconomic development.
As outlined within the 2024 National Budget Speech, spending in the 2025 / 2026 financial
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