Andries van Heerden on how Afrimat is responding to COVID-19

Andries van Heerden, the CEO of Afrimat, recently sat down with CNBC Africa to discuss the state of the construction industry in South Africa amidst the COVID-19 pandemic. The construction sector, a key contributor to the country's employment and growth, faced significant disruptions due to the outbreak. However, Afrimat managed to weather the storm by implementing a diversification strategy, reducing costs, and improving efficiency. Van Heerden highlighted the group's resilience in volatile times and the strong recovery of their construction materials business post-lockdown. The company is currently experiencing high levels of demand in the industry and is optimistic about government initiatives supporting projects like low-cost housing and road resurfacing, especially in rural areas. Van Heerden emphasized the positive 'green shoots' seen in various regions, indicating a promising outlook for the sector. He also addressed the government's efforts to revive the construction industry, citing increased activity in rural areas and a surge in low-cost housing projects, potentially driven by upcoming elections. Van Heerden advised a decentralization of projects to stimulate economic activity, create jobs, and boost the economy. Moving on to Afrimat's mining operations, van Heerden shared plans for two acquisitions - the Cozor mining group to expand their Northern Cape iron ore business and the Unicorn Capital Partners business, including the Nkmaati anthracite mine. Despite accumulating cash reserves during challenging times, Afrimat remains focused on growth and enhancing their presence in the mining sector.