Afrimat Construction Index shows growth in South Africa's construction sector

THE Afrimat Construction Index (ACI) increased for a second consecutive quarter in the last three months of 2025, the first time this has happened since the brief recession of 2020, indicating improving activity levels in the sector.

- EDWARD WEST

The ACI, released Thursday, showed a marginal year-on-year increase in activity in the fourth quarter, boosted by a 5.4% surge in building materials produced and a 2.2% increase in building materials sales values.

Dr Roelof Botha, economist and compiler of the ACI, said although the activity levels in South Africa’s construction sector remain subdued, the ACI’s seasonally adjusted reading has increased for the second consecutive quarter. He said the most impressive aspect of the latest index is the positive growth trend for the indicators that carry the largest weighting, namely sales values and volume of production of building materials.

He said Afrimat, a major provider of materials for the construction industry, had reopened quarries due to the increased demand.

“Five of the 10 indicators recorded positive year-on-year growth rates, whilst seven recorded positive quarter-on-quarter growth during the fourth quarter of 2025,” he said.

He said the rate-cutting cycle of the monetary policy authorities had played a crucial role in lowering the cost of capital formation, which invariably involves construction works and building activity.