The "South Africa Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026" report has been added to ResearchAndMarkets.com's offering.
The construction industry in South Africa is expected to register a growth of 8% in real terms in 2022, following an annual decline of 1.9% in 2021 and a severe contraction of 19.8% in 2020.
Growth this year will be largely supported by the restart of projects that were delayed owing to the Coronavirus (COVID-19) restrictions, coupled with a rise in the number of building plans passed in 2021. According to Statistics South Africa (Stats SA), the total value of recorded building plans passed by larger municipalities rose by 28% year on year (YoY) in 2021. Although starting to recover this year, output will not return to 2019 levels until after 2026.
The recovery will be supported by the government's investments on transport, energy, water and residential projects. The government announced its financial year (FY) 2022/2023 (April 2022 to March 2023) Budget in February 2022. It includes an expenditure of ZAR2.2 trillion (143.7 billion) in the next financial year, marking a 3.9% increase compared to the expenditure of ZAR2.1 trillion ($140.4 billion) earmarked in the current financial year (FY2021/2022).
As part of the latest budget, the government announced that it will carry out 28 transportation projects, 18 housing development projects, 11 water and sanitation projects and 4.6GW (gigawatts) of new energy generation projects in the next financial year. As per the projections outlined in the budget, the South African economy is expected to expand by 2.1% in real terms this year, while the exports and gross fixed capital formation are projected to expand by 2.9% and 3.2%, respectively, in 2022. In the short term, however, labor shortages, rising oil prices and supply chain disruptions pose a significant downside risk to the industry's output.
The publisher expects the South African construction industry to stabilize at an annual average growth rate of 3% from 2023 to 2026, supported by investments on transport, renewable energy, housing and manufacturing projects. The government aims to diversify its energy mix and generate 26% of the total energy mix from renewable energy sources by 2030.
This plan will be supported by financial assistance from several countries, to accelerate investment in renewable energy projects and develop new industries such as electric vehicles (EVs) and green hydrogen. In November 2021, South African president Cyril Ramaphosa announced that France, Germany, the UK and the US will provide ZAR137.3 billion ($9.2 billion) in funding during 2022-27, to assist the country in meeting its 2030 carbon emission targets.
In another recent development, the government reported that 18 new housing projects costing ZAR129 billion ($8.6 billion) were under construction as of February 2022, with the goal of establishing more than 190,000 housing units. Over the long term, the construction industry's growth will be supported by investments as part of the 10-year ZAR2.2 trillion (US$133 billion) infrastructure plan that was unveiled by the government in 2020. The plan comprises 276 projects in various sectors, including transport, energy, industrial and housing.
Scope
- Historical (2017-2021) and forecast (2022-2026) 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
For more information about this report visit https://www.researchandmarkets.com/r/2874f8
View source version on businesswire.com: https://www.businesswire.com/news/home/20220802005887/en/
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