Construction looks forward to year of growth.

Posted On Monday, 17 March 2003 02:00 Published by eProp Commercial Property News
Rate this item
(0 votes)

THE construction sector is confident that it will again experience good growth this year after a brisk last year that saw the sector expanding by 5,32%.

Construction IndustryGovernment will spend about R50bn on construction projects over the next three years. This represents real growth of 12% a year for the sector, says Carl Grim, CEO of Aveng, SA's largest construction company. The federation ofcivil engineering contractors is equally upbeat, expecting nominal turn over from civil engineering alone to rise from about R16bn last year to R20bn this year.

Optimism in the sector stems from the expected decline in inflation and
interest rates, together with the recovery of the rand against the major
currencies and other factors.

SA's economy is expected to continue expanding at a rate of 3% a year.
"This growth would in part be brought about by government expenditure as
well as private investment, which will support growth in gross fixed capital
formation," says the federation's Pierre Blaauw.

"Prudent finances have culminated in a declining budget deficit which,
coupled with government's focus on infrastructure development, holds great
promise for the civil industry," Blaauw says.

Federation members were encouraged by increased tender activity in the
latter part of last year. However, Blaauw says underspending due to
institutional capacity problems is still preventing the full benefit of
rising government capital expenditure from trickling down to the industry.

The industry is planning a summit at which some of these issues will be
discussed. Meanwhile, some construction analysts have said that SA's rate of
capital expenditure is still not high enough to catch up on the country's
R170bn social and economic infrastructure backlog.


Last modified on Friday, 04 October 2013 19:22

Most Popular

Residential sectional title sales again on the rise

May 27, 2021
Andrew_Golding_Golding_PropertyGroup
Over the past 15 years, the sectional title market in South Africa has become entrenched…

Insurance policy renewals – the devil is in the details

May 27, 2021
PJ_Veldhuizen
Although your insurance policy should be reviewed annually, by paying your insurance…

JSE-listed Brikor increases profits markedly during Covid-19

May 31, 2021
Garnett_Parkin
Despite Covid-19, the lockdown and unusually high levels of rainfall in the last quarter…

Delta to apply for lifting of trading suspension on publication of half-year results ended 31 August 2020

Jun 01, 2021
Sibongile_Masinga_Bongi
Delta Property Fund, a specialist black-managed and substantially black-owned REIT with a…

Awards programme set to celebrate women in the construction industry: Entries open 7 June

May 28, 2021
cibd_winners
In a traditionally male-centric industry such as the construction industry, it is…

Please publish modules in offcanvas position.