Construction industry sees green shoots of growth off a low base - BER's Lemboe

SOUTH Africa's construction sector, long mired in stagnation and underperformance, is beginning to show green shoots of recovery off a low base, according to Craig Lemboe, the deputy director at the Bureau for economic Research (BER) speaking at Construction Industry Business Breakfast held on Wednesday.

- PHILIPPA LARKIN

While the industry remains well below pre-pandemic output levels and continues to suffer from weak capital investment and low business confidence, recent survey data suggests that “green shoots” may be taking root.

Lemboe said for most of last year, saw the non residential sector was starting to show a little bit more growth and more potential than the residential sector. However, this was from a more eroded base as it’s 50% smaller than what than what it was 10 years ago.

“We also see from our civil contractors survey that activity, particularly among large contractors, is doing quite well. So there is this idea that we are starting to see some larger infrastructure projects to come on board, and that the contractors are starting to see this, both in terms of the current activity, but also in terms of the activity going forward,” he said.

South Africa was starting to see some larger infrastructure projects to come on board.