South Africa Construction Market Trends and Opportunities, Q2 2021 Report with Forecasts to 2025 – ResearchAndMarkets.com
DUBLIN–(BUSINESS WIRE)–The “Construction in South Africa – Key Trends and Opportunities to 2025 (Q2 2021)” report has been added to ResearchAndMarkets.com’s offering.
The South African construction industry is expected to grow by 6.2% in real terms in 2021, following four consecutive years of decline, including a contraction of 20.3% in 2020.
However, growth in 2021 is more a sign of the relative depths to which the industry had plunged in 2020, owing to lockdowns rather than a sign of buoyant activity. The industry’s output was severely affected that year by the outbreak of the Coronavirus (COVID-19) pandemic, with the country imposing a strict six-week lockdown in response.
Reflecting the pandemic’s continued impact on construction activities, the industry’s value-add was down by 17.5% year on year (YoY) in Q1 2021, which was preceded by a 19.8% contraction in Q4 2020, according to Statistics South Africa (Stats SA). The industry was also one of the hardest hit in terms of employment, as more than 7.2 million people are unemployed, which made the unemployment rate 32.6% in Q1 2021.
To revive the economy from crisis, the government announced plans to provide ZAR791.2 billion (US$45.3 billion) of investment for infrastructure development in the 2021 Budget, which includes the repair and replacement of the existing dam, bridge and railway line, the development of the housing, energy, agriculture, transport, water and sanitation and digital infrastructure sectors.
Furthermore, to support the public health and the rolling out of the vaccination programme, the government allocated ZAR248 billion (US$17.2 billion) in the budget. Officials from the World Bank, African Development Bank (AfDB) and Development Bank of South Africa (DBSA) have pledged support for the infrastructure drive, which is expected to create over 1.8 million jobs over the next 10 years.
The industry is expected to register an annual average growth of 3.4% between 2022-2025, as government initiatives to ramp up capital spending on infrastructure and energy sector gather momentum. The government expects the country’s public debt to rise from 63.3% of GDP in 2020 to 81.8% by 2021, and further increase to 93.5% by 2026.
Reflecting the effect of the COVID-19 pandemic on the construction industry, the total value of plans passed for building construction fell by 36.6% YoY in 2020, preceded by annual declines of 11.8% and 1.1% in 2019 and 2018, respectively.
This report provides detailed market analysis, information, and insights into the South African construction industry, including:
- The South African construction industry’s growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the South African construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope
- Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in South Africa, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Key Topics Covered:
1 Executive Summary
2 Construction Industry: At-a-Glance
3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 COVID-19 Status
3.5 Risk Profile
4 Construction Outlook
4.1 All Construction
- Outlook
- Latest news and developments
- Construction Projects Momentum Index
4.2 Commercial Construction
- Outlook
- Project analytics
- Latest news and developments
4.3 Industrial Construction
- Outlook
- Project analytics
- Latest news and developments
4.4 Infrastructure Construction
- Outlook
- Project analytics
- Latest news and developments
4.5 Energy and Utilities Construction
- Outlook
- Project analytics
- Latest news and developments
4.6 Institutional Construction
- Outlook
- Project analytics
- Latest news and developments
4.7 Residential Construction
- Outlook
- Project analytics
- Latest news and developments
5 Key Industry Participants
5.1 Contractors
5.2 Consultants
6 Construction Market Data
7 Appendix
For more information about this report visit https://www.researchandmarkets.com/r/xbd405
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