Modern Quarrying Q2 2023

SOUTHERN AFRICAN INDUSTRY

The outlook for South Africa’s struggling construction industry remains uncertain, hovering between the massive infrastructure expenditure figures being publicly mooted and the state’s seeming inability to implement its economic recovery plans. CONSTRUCTION SECTOR WAITS FOR GAME CHANGING ACTION A t this year’s AfriSam Budget Breakdown event, now a regular highlight on the construction sector calendar, Econometrix Economist Dr. Azar Jammine pointed to raised worsening of the energy crisis could undermine the economic predictions in the budget speech. If loadshedding was exacerbated, he felt that the country may not even reach its meagre 0,9% growth target for the year. In such a scenario, government’s own spending plans would be

expenditure targets for infrastructure. Dr. Jammine said he was encouraged by the growth from R812b to R903b in the estimates for public sector infrastructure expenditure from the 2023/24 to 2025/26 financial years. “These numbers are so big that if we were to see their full implementation, it would be a game changer not only for the construction sector, but for the entire economy,” he said. “Where the real hope lies is in government getting its act together and starting to implement its capital projects.” He noted the importance of how Finance Minister Enoch Godongwana dealt with plans to restructure Eskom’s capital debt, as any

further dampened by lower tax revenues. The question he posed was whether there was the political will within the governing party to allow Eskom’s debt restructuring to take place. Such a move was inevitable, however, as he foresaw a complete realignment of politics in the general elections of 2024. Focusing on the construction industry, Dr Jammine once again painted a sobering picture – but highlighted the sector’s potential to deliver economic benefits. He reminded his audience that construction provides 7,8% of the country’s employment,

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