Share
What lies ahead for SA’s construction sector in 2024?
South Africa’s construction sector has yet to recover to its pre-pandemic levels but economists are optimistic of some recovery this year. CNBC Africa digs into the prospects for the sector with Bongani Dladla, CEO at Construction Industry Development Board (CIDB).
Fri, 01 Mar 2024 11:13:04 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The construction industry in South Africa is currently 20% weaker than pre-pandemic levels, with GDP measurements reflecting a downturn.
- Initiatives like the Strategic Infrastructure Programme and collaborations with state-owned entities are aimed at creating a robust project pipeline to stimulate investment and job creation.
- Addressing security concerns, promoting transformation, and enhancing community engagement are crucial for driving sustainable growth in the sector.
South Africa's construction sector has been grappling with challenges that have hindered its full recovery to pre-pandemic levels. Despite this, there is a sense of cautious optimism among economists and industry stakeholders that a turnaround may be on the horizon. Bongani Dladla, the CEO at the Construction Industry Development Board (CIDB), sheds light on the current state of the sector and the strategies being implemented to spur growth.
The construction industry in South Africa remains below its pre-pandemic strength, with GDP measurements showing a 20% dip compared to pre-COVID levels. Dladla attributes this struggle to a combination of factors. One key element is the need for a robust project pipeline, which has been emphasized through initiatives like the Strategic Infrastructure Programme (SIP) and projects undertaken by state-owned entities such as Sanral. These ambitious targets aim to create a conducive environment for investment and job creation within the sector.
Moreover, Dladla highlights the importance of innovation and continuous improvement in the industry. Collaborations with universities and a focus on regulatory transformation by CIDB are aimed at ensuring that growth in the sector is both sustainable and inclusive. The need for a competent public service, equipped with the necessary project management skills, is also crucial in expediting project delivery and driving economic development.
Addressing security concerns within the sector, particularly those related to the 'construction mafia', Dladla acknowledges the complexity of the challenge. While genuine transformation and social facilitation are crucial for community engagement and empowerment, unacceptable practices such as violence and project disruptions must be dealt with decisively. Collaborations with law enforcement agencies are essential to combat crime and ensure a safe working environment for construction projects.
Dladla emphasizes the importance of showcasing tangible examples of transformation and community benefits to deter illicit activities and promote a positive industry image. By fostering inclusivity and diversity, the construction sector can work towards a more sustainable and ethical growth trajectory.
As South Africa's construction sector navigates these challenges, a concerted effort from industry players, government entities, and law enforcement agencies is essential to drive meaningful change and revive the sector. By focusing on innovation, regulation, and community engagement, the construction industry can pave the way for a brighter future, characterized by growth, stability, and social impact.
SIGN UP FOR OUR NEWSLETTER
DAILY UPDATE
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.