Modern Quarrying Q1 2025

INDUSTRY FORECAST

THREE SOUTH AFRICAN CONSTRUCTION INDUSTRY FORECASTS FOR 2025 Key shifts within the infrastructure development landscape mean positive tailwinds for South Africa’s construction industry, with R322,2-billion currently planned for public infrastructure projects in 2025 alone.

A ccording to Roelof van den Berg, CEO of the Gap Infrastructure Corporation (GIC), this comes as technological advancements and evolving market dynamics drive important innovations, new streamlined regulations for public-private partnerships (PPP) cut project approval times, and government turns its focus to transforming South Africa into a “construction site”. “These changes mark the start of what former Finance Minister Tito Mboweni is said to have called the ‘infrastructure years’ – a period that could reshape the country’s built environment more dramatically than any time in the past decade,” he says. “The benefit of this for communities could be exponential. Not only does it mean expanded service delivery, but the construction industry, as a major

SNAPSHOT

Building on the reported 82 strategic integrated projects (SIPs) valued at R437-billion currently under construction, the industry anticipates substantial increases in public infrastructure spending.

Intense competition within the industry means that companies will have to rely more heavily on advanced tools and AI to streamline processes, optimise procurement, and protect profit margins.

Under the weight of global supply chain pressures, rising material costs, and persistent inflation, the construction industry will be compelled to move beyond incremental improvements, and embrace new levels of technology driven efficiency.

Regulatory changes will mean fewer barriers, predictable timelines, a healthier project pipeline, and more stable deals – all translating into stronger incentives and better margins for private infrastructure developers.

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MODERN QUARRYING QUARTER 1 | 2025