COVID-19: Green shoots for South Africa’s construction sector

In the midst of the ongoing COVID-19 pandemic, South Africa's construction sector seems to be showing signs of recovery. According to Chifipa Mhango, Chief Economist at the Steel and Engineering Industries Federation of Southern Africa (SEIFSA), there has been a notable increase in sales within the construction and building material sectors. This increase in sales is seen as a positive indication for the economy, despite some conflicting reports. While some surveys have shown a decline in building completions, Mhango emphasizes the importance of considering the actual activity on the ground rather than just the data. He points out that there has been a significant uptick in industrial activity and sales figures. Resilience in the construction industry is evident, with a focus on sectors such as home improvements and residential construction. As people spend more time at home, they are allocating budgets towards enhancing their living spaces, driving growth in the sector. Additionally, government infrastructure spending is expected to play a crucial role in boosting the construction industry. With a substantial sum allocated for infrastructure projects, there is hope for job creation and economic growth. However, challenges such as high unemployment rates and the need for reforms in project implementation still remain.