Based on financial results of the top 10 construction companies on the Johannesburg Stock Exchange (JSE), PwC- a professional network service provider released a report that indicates the spontaneous growth of South Africa’s construction industry.
Andries Rossouw,PwC’s partner stated that the country has been facing financial constraints in the last three years, but this has not been a hindrance as individual companies are putting more commitments to public infrastructure.
According to the report, institutions in the public construction sector recorded a capital expenditure increase of 11.7% since 2011. Also, new construction work shot to 3.5%, while plant, machinery and equipment purchases rose by 55%. There has also been an increase in salaries for individuals working in the construction sector, unlike other sectors.
The report comes a few months after South Africa government promised to roll out infrastructure projects faster. It also reveals common risks such as health, safety, environment sustainability, law compliance, growth and expansion, with movement of foreign exchange affecting the construction sector by impacting on project timelines.
The major challenges of the country’s construction industry include: skill development and equity in employment.